Tracy Klestadt


Mr. Klestadt has been practicing in the fields of bankruptcy, workouts, corporate reorganizations and commercial law for over thirty years and has been involved in many prominent national and local cases representing institutions, businesses and individual clients from a wide range of industries.

Mr. Klestadt has represented parties on all possible sides of bankruptcy cases, including debtors, secured creditors, unsecured trade creditors, creditors’ committees, lessors and lenders, real estate developers, management companies, mortgagees, landlords, co-operative apartment corporations and more. He brings a unique, practical business perspective to resolving complex situations, maximizing asset valuations and minimizing losses.

Prior to founding his own firm in February 1995, Mr. Klestadt practiced with the bankruptcy group of LeBoeuf, Lamb, Greene & MacRae, L.L.P., a national law firm. He is a member of the panel of mediators certified by the United States Bankruptcy Court for the Southern District of New York. Martindale-Hubbell Law Directory has awarded Mr. Klestadt its highest rating, signifying that his legal abilities and professional ethics meet the highest standard as measured by members of the Bar.


University of Chicago Law School
Columbia University

Bar and Court Admissions:

State of New York
State of New Jersey
U.S. District Courts for Southern and Eastern Districts of New York and for the District of New Jersey
U.S. Court of Appeals for the Second Circuit

Professional Affiliations/Memberships:

American Bankruptcy Institute
American Bar Association

Significant Representations:

  • Former partners of Dewey & LeBoeuf LLP, Heller Ehrman LLP and Thelen LLP in their bankruptcy cases.
  • AOF Imaging Technology (US) Ltd., the largest trade creditor in the Chapter 11 case of Eastman Kodak Company.
  • Conflicts counsel for the Official Committee of Unsecured Creditors of The Great Atlantic & Pacific Tea Company, Inc. et al.
  • Several investor “clawback” defendants (individual and fund) in the SIPA case of Bernard L. Madoff Investment Securities LLC.
  • Mr. Klestadt was elected Trustee by creditors of Alliance Bancorp and Alliance Mortgage Investments, Inc., two subprime mortgage lenders, in their chapter 7 cases pending in the United States Bankruptcy Court for the District of Delaware.
  • Postconfirmation trustee of the Legacy Creditors Trust (five nursing homes in the Buffalo, New York area).
  • Official Committee of Unsecured Creditors of Club Ventures Investments LLC d/b/a David Barton Gyms
  • Official Committee of Unsecured Creditors of Brunschwig & Fils, Inc.
  • Chair of the Official Committee of Unsecured Creditors of Extended Stay, Inc., a multibillion dollar hotel chain.
  • Official Committee of Unsecured Creditors of Dreier LLP, a 250 attorney law firm in its chapter 11 case resulting from the alleged criminal activities of its sole equity holder, Marc Drier.
  • Coudert Brothers LLP, a former major international law firm, in its chapter 11 case in the Southern District of New York.
  • The largest unsecured creditor and Co-Chair of the Creditors’ Committee in the Hartmarx Corporation chapter 11 case pending in Chicago.
  • Conflicts Counsel in the Bayou Group chapter 11 cases.
  • Air America Radio (Piquant LLC), in its chapter 11 case in the Southern District of New York.
  • Sypris Technologies, Inc., as the largest trade creditor and member of the Creditors’ Committee in the Dana Corporation chapter 11 case, and Textron Fastening Systems, Inc. in the Delphi Corporation case, both in the auto parts industry.
  • Tender Loving Care Health Care Services, Inc., a $250 million home health care company, in its chapter 11 case. Creditors recovered 100% of their claims plus interest.
  • Several creditors in the chapter 11 cases of Lehman Brothers Holdings, Inc., Enron Corporation, WorldCom, Inc., PSInet, Inc., and Adelphia Communications Corporation.
  • Mr. Klestadt has served as mediator in several matters, including adversary proceedings in the Lehman Brothers, 360networks, and Quebecor cases.

Programs and Lectures/Awards/Publications:

  • Author (with Wayne D. Holly) of numerous articles published in the “Outside Counsel” column of the New York Law Journal.
  • Author of “Professional Sports Teams in the Financial Penalty Box: How Bankruptcy Law Could Affect the Business of Playing Ball,” Norton Bankruptcy Law Adviser, April 1995; “An Introduction to Chapter 11 Bankruptcy,” Shopping Center Legal Update, Summer 1991; and “Importers, Brokers and Chapter 11,” American Shipper, May 1990.
  • Recognized by New York Super Lawyers from 2007 through 2017.