Natasha Songonuga

Practice Areas

Ms. Songonuga has extensive experience in business reorganization and restructuring matters, working across the full spectrum of chapter 11 cases and counseling creditors in assignments for the benefit of creditors state court insolvency proceedings. One of two Subchapter V Trustees appointed in Delaware under the Small Business Reorganization Act of 2019 (SBRA), she shepherded the first chapter 11 plan of reorganization approved in Delaware under the SBRA. More broadly, Ms. Songonuga represents debtors; creditors, including global and national manufacturer environmental creditors who are so-called potentially responsible parties; chapter 11 and chapter 7 trustees appointed under the Bankruptcy Code; landlords; bidders at bankruptcy sales; and trustees appointed pursuant to the Securities Investor Protection Act. She handles a wide range of other matters, including management of the claims objection and reconciliation processes for thousands of claims; drafting and negotiation of, and objection to, plans of reorganization and liquidation; section 363 sales; stay relief motions; and related litigation.

In addition to her bankruptcy practice, Ms. Songonuga handles matters locally for the firm’s products liability clients involved in asbestos litigation and has represented landlords in FDIC receiverships of banks arising from the recent subprime debacle.

Focus Areas

Subchapter V: As Subchapter V Trustee, Ms. Songonuga works with Subchapter V debtors and their creditors facilitating the development of a consensual Chapter 11 reorganization plans, appearing at major hearings, and ensuring that timely plan payments are made. She successfully shepherded the first confirmed Subchapter V Chapter 11 plan of reorganization in Delaware in the bankruptcy case of Factom, Inc., a blockchain company working under contracts with certain governmental agencies, where an investor who invested $6 million in the debtor under a Simple Agreement for Future Equity (SAFE) vigorously objected to the bankruptcy and the debtor’s initial proposed chapter 11 plan.

Debtor/Trustee Representation: Ms. Songonuga focuses her practice on representing financially troubled corporate entities and trustees in both Chapter 11 and Chapter 7 bankruptcy cases. Her trustee representations include the Chapter 11 trustee in the DBSI Inc. bankruptcy, which involves a conglomerate of real estate entities, with listed assets valued at over $2.65 billion at the time of their bankruptcy filing in November 2008, that perpetrated a massive scheme of corporate looting and financial fraud on more than 12,000 investors. Currently, Ms. Songonuga’s representations include the trustee who is liquidating assets pursuant to the confirmed Chapter 11 plan of DBSI Inc. and its affiliates, as well as the former Chapter 11 trustee who now serves as both Estate Litigation and Private Actions Trustee. She also represents debtor United Gilsonite Laboratories in its Chapter 11 asbestos-related case pending in the Middle District of Pennsylvania.

Representation of Creditors: Ms. Songonuga represents secured and unsecured creditors in large bankruptcy cases, including environmental PRP creditors in the Maxus Energy Corporation and Tierra Solutions Chapter 11 bankruptcy cases; landlords in the Allied Van Lines, Fremont General, and Lehman Brothers Chapter 11 bankruptcies, and creditors in the Chapter 11 bankruptcy cases of Conex Holdings, LLC, Tropicana Entertainment, LLC, and VICORP Restaurants, Inc. In those cases, Ms. Songonuga has asserted claims on behalf of creditor clients and defended those clients in various claim objections and/or preference and fraudulent transfer actions.

Bankruptcy and Insolvency Litigation: Ms. Songonuga has substantial experience in bankruptcy and insolvency-related litigation, including prosecution and defense of preferential and fraudulent transfer avoidance actions and fiduciary duty claims, preparation of discovery requests and responses, disputes involving the assumption and rejection of leases and contracts, and assistance in depositions, frequently working with members of the firm’s Commercial & Criminal Litigation Group. She also has extensive experience defending avoidance action defendants in state court assignments for the benefit of creditors proceedings.

Honors & Awards

In addition to Chambers USA, Ms. Songonuga was selected to the Lawdragon “500 Leading U.S. Bankruptcy & Restructuring Lawyers” list for 2020 and 2022. She was named to Profiles in Diversity Journal’s 2015 “Women Worth Watching” list and received The Network Journal’s 2015 “40 Under Forty Achievement Award.”