Significant Cases
The firm represents the creditors’ committee in the chapter 11 cases of AMF Bowling Worldwide and affiliates pending in the United States Bankruptcy Court for the Eastern District of Virginia. AMF is the largest operator of bowling centers in the world, offering a combination of bowling, food and beverage offerings, and amusement games at its 262 bowling centers in the United States and eight bowling centers in Mexico.
The firm represents American Suzuki Motor Corporation ("ASMC"), the sole distributor in the continental United States of Suzuki automobiles, motorcycles, all-terrain vehicles, and outboard engines. During the four-month prebankruptcy filing period, the firm worked to prepare for a chapter 11 filing to terminate ASMC’s automobile division and continue the operation of the other three divisions in the event ASMC’s parent, Suzuki Motor Corporation, determined not to continue absorbing mounting losses of its American subsidiary automobile division. The firm structured a chapter 11 case that is designed to take no more than 150 days and should provide creditors as much as 100 cents on the dollar, including terminated automobile dealers. The reorganization will preserve the hundreds of ASMC motorcycle, all-terrain vehicle, and marine dealers while at the same time paying terminated automobile dealers and trade creditors up to 100 cents on the dollar.
The firm serves as conflicts counsel to Global Aviation Holdings and certain of its direct and indirect subsidiaries in their chapter 11 cases pending in the Eastern District of New York. Global Aviation is a leading provider of customized military, cargo, passenger, and commercial charter global air transportation services. The firm is handling matters on behalf of Global Aviation with respect to key aircraft equipment lease counterparties Boeing Company, Delta Airlines, and PEMCO World Air Services.
The firm is counsel to William Lyon Homes, a multi-million dollar real estate developer and home builder with projects throughout California, Arizona, and Nevada, in connection with its prepackaged plan of reorganization of over $500 million in debt. William Lyon Homes successfully confirmed its plan in less than 90 days and emerged from chapter 11 as a reorganized company with a significantly de-levered balance sheet.
The firm is cocounsel to Evergreen Solar in its chapter 11 bankruptcy case pending in the U.S. Bankruptcy Court for the District of Delaware. Evergreen manufactures String Ribbon® solar power products with its proprietary, low-cost silicon-wafer technology. The company’s patented wafer-manufacturing technology uses significantly less polysilicon than conventional processes and its products provide reliable and environmentally clean electric power for residential and commercial applications globally. The noteholders have agreed to support one or more asset sales as part of the restructuring.
The firm was recently retained to represent the creditors' committee as its cocounsel and conflicts counsel in the Harry & David's pre-arranged case. Harry & David is a producer and marketer of premium gift-quality fruit, gourmet food products, and specialty gifts headquartered in Medford, Oregon.
The firm represented the debtors in their chapter 11 cases in Wilmington, Delaware. The debtors operated one of the largest commercial nursery operations in North America, producing and distributing one of the broadest assortments of ornamental shrubs, color plants, and container-grown plants in the industry. The debtors sold their products to more than 1,180 retail and commercial customers, representing more than 6,670 outlets throughout the United States, including premium local and regional garden centers, as well as leading national home centers and retailers, such as The Home Depot, Lowe’s and Wal-Mart. The firm was instrumental in effectuating a sale of substantially all of the debtors’ assets to New Hines Holding Company and wound up the remainder of the cases through a structured dismissal.
The firm represented this five-time Grammy Award winning singer in a personal bankruptcy case and three related corporate cases. The firm successfully negotiated a settlement of contentious litigation regarding Ms. Braxton's rejection of her record contract.
The firm represents the ad hoc committee of motion picture studios in this case. The committee is comprised of the major motion picture studios that supply Blockbuster with over 80% of their inventory. The firm represented the same group in the run-up to the Movie Gallery/Hollywood Video chapter 11 commenced in early 2010, although upon the appointment of the studios to the official creditors' committee in that case, we transitioned to creditors' committee counsel. In Blockbuster, by virtue of certain studios having collateral and others having received critical vendor treatment, none of the studios sit on the official creditors' committee in that case.
The firm serves as cocounsel to the debtors in the chapter 11 cases of U.S. Concrete and 44 of its affiliates. The debtors are a major producer of ready-mixed concrete, precast concrete products, and concrete-related products, employing 2,100 people in over 140 locations. An agreement was reached that contemplates a significant deleveraging of the debtors’ balance sheet - including satisfaction in full of the existing secured facility and equitization of the outstanding bonds - and provides for a full recovery to unsecured trade creditors.
The firm represents the creditors' committee in the chapter 22 case (second chapter 11 filing) of the nation's second largest video retailer. The representation began as counsel to the ad hoc committee of motion picture studios; when the studios were appointed to the official creditors' committee, the firm transitioned to committee counsel.
The firm represents the regional air carrier Mesa Air Group and its affiliated companies in their chapter 11 cases pending in the Southern District of New York. The firm was able to rationalize Mesa’s fleet by shedding approximately 100 unnecessary aircraft and reducing the air carrier’s fleet to approximately 75 aircraft. The firm also negotiated the restructuring and extension of Mesa’s code-share operating agreement with U.S. Airways. Over $2.5 billion in unsecured claims were restructured in exchange for $45 million in new notes and 80% of the equity in the reorganized air carrier. Mesa Air Group’s reorganization was effectuated through a plan of reorganization that was confirmed in January 2011 approximately one year after the cases were commenced.
The firm represented the debtor in this prepackaged chapter 11 case and related subsidiaries. Latham is a leading manufacturer of swimming pools and related equipment and accessories. The case filed on December 23, 2009, and a plan was confirmed January 22, 2010 - approximately thirty days after the petition date. The plan provided 100% payment to unsecured creditors.
The firm represented Champion Enterprises and certain of its affiliates in their chapter 11 cases. Champion is a leading manufacturer of modular homes. The firm successfully assisted the debtors in obtaining court approval of a sale of substantially all of their assets to a buyer formed by certain of prepetition and postpetition lenders.
Freedom Communications is a national information and entertainment company of print publications (including the Orange County Register), broadcast television stations, and interactive businesses. As a result of actions taken by the firm on the committee’s behalf in this “pre-planned” chapter 11 case, the debtors and their lenders radically amended the proposed plan to greatly enhance the recovery of unsecured creditors.
The firm was counsel to Magnachip, which designed and manufactured analog and mixed-signal semiconductor products for high-volume consumer applications such as mobile phones, digital televisions, flat-panel displays, notebook computers, mobile multimedia devices, and digital cameras. The company filed chapter 11 to effectuate an expedited sale of its company. Ultimately, the debtors were reorganized through a plan of reorganization that was confirmed within approximately 120 days of its filing.
The firm served as bankruptcy cocounsel representing Visteon Corporation, a Fortune 500 global supplier of automotive systems, modules, and components to nearly every major vehicle manufacturer in the world, in its chapter 11 reorganization. At the time of filing, Visteon Corporation and its affiliates had a workforce of approximately 30,033 employees and a network of manufacturing sites, technical centers, sales offices, and joint ventures located in every major geographic region of the world. Located in 27 countries, Visteon reported $9.5 billion in revenue in 2008 with approximately 31,000 employees. Pursuant to its confirmed plan, Visteon reduced its funded debt by over $2 billion dollars.
The firm was retained as conflicts counsel to the official creditors’ committee appointed in the historic Chrysler chapter 11 case. The focus of the firm’s engagement was the investigation and development of avoidance claims arising from the prebankruptcy divestiture of Chrysler by Daimler AG.
The firm is counsel to Z Gallerie, a $200 million, family-owned, specialty home-furnishing retailer in its chapter 11 case. On October 8, 2009, less than six months after commencement of the chapter 11 case, the court approved the company's reorganization plan. Pursuant to the plan, Z Gallerie's founders will maintain their ownership stake and the company will continue to operate fifty-five retail locations throughout the United States.
The firm was counsel to Rhodes Homes in its chapter 11 case and is currently counsel to the reorganized debtor operating as Dunhill Homes. At the time of its bankruptcy filing, Rhodes Homes was a leading Nevada homebuilder and had developed 40 communities, building 6,000 homes and generating over $2.4 billion in total revenues. The firm recently restructured Rhodes Homes, Nevada’s then third-largest homebuilder, by confirming a plan of reorganization that provided for an orderly handover of the company’s Nevada assets to a consortium of lenders. The plan resulted in the payment by the lenders of 100% of the outstanding trade debt.
The firm represented the creditors' committee of Fleetwood Enterprises, Inc. With 3,700 employees and 19 manufacturing plants in 11 states, Fleetwood was one of the nation's leading producers of manufactured housing and recreational vehicles, with subdivisions that manufactured motor homes, housing, and travel trailers.
The firm represents this independent energy company engaged in the development and production of oil and gas through its offshore drilling facilities. The company has over $500 million in debt and generates over $200 million in revenue. Pacific Energy also filed a CCAA reoganization proceeding in Vancouver in order to enforce certain the US bankruptcy court orders in Canada because Pacific Energy's common stock traded on the Toronto Stock Exchange.
The firm is lead bankruptcy counsel for WL Homes LLC, doing business as John Laing Homes, one of the largest private, high-volume home builders in the nation. Purchased in June 2006 by the world’s largest real estate developer (Emaar Properties PJSC) for $1.05 billion, John Laing Homes reported 2007 revenues of $948 million, with assets of approximately $1.4 billion and liabilities of approximately $937 million.
The firm is bankruptcy counsel to Heller Ehrman, an 118-year old law firm with offices across the country and in London and Asia. Heller had 700 lawyers, more than 1000 employees, and revenues in excess of $500 million. The firm dissolved and filed a voluntary chapter 11 petition in late December 2008 in order to preserve the right to pursue a significant avoidance action.
The firm represents the creditors' committee in the chapter 11 cases of Flying J and certain of its subsidiaries. The debtors and their nondebtor subsidiaries are a fully integrated oil company with operations in exploration, production, refining, transportation, wholesaling, and retailing of petroleum products. Flying J is one of the twenty largest privately owned companies in the US with 2007 revenues in excess of $16 billion. Flying J operates over 240 retail locations, including travel plazas, convenience stores, restaurants, motels, and truck stops in 41 states and Canada; its subsidiaries own and operate two oil refineries and a 700-mile common carrier oil pipeline in Texas.
The firm represented EZ Lube, the largest independent quick-lube operator in California and one of the largest privately owned companies of its type in the United States, in its chapter 11 bankruptcy cases. Prior to the petition date, the company had 78 locations in Southern California, and 4 in Arizona. In less than one year after filing for bankruptcy, the firm confirmed a plan of reorganization that converted approximately $94.5 million of claims into various units in reorganized EZ Lube, went effective with the plan, and emerged from bankruptcy as a stronger, more competitive operating company.
The firm represents the creditors' committee in Circuit City Stores, Inc. Circuit City was a consumer electronics retailer with more than 600 locations in the United States. At the time of the bankruptcy filing, the company owed its secured lender (Bank of America) almost $800 million, and also owed its trade vendors approximately $650 million. There was also significant involvement in a related CCAA proceeding, as Circuit City had a 500+ store chain in Canada that was sold as a going concern to Bell Canada.
The firm represented certain Lehman Brothers entities in the chapter 11 cases of Palmdale Hills Property. As a prepetition lender, Lehman Brothers were owed in excess of $2 billion that were secured against 19 real estate developments. Lehman Brothers’ claims were resolved through a plan of reorganization developed by the firm that was confirmed while competing against plans filed by the Palmdale debtors.
The firm represented approximately 180 of the 200 affiliated Woodside Homes companies in their chapter 11 cases. The Woodside Group is one of the nation’s largest privately held home building and construction companies. Its businesses include acquiring and developing property for sale to homebuilders; overseeing the acquisition, development, and management of commercial, retail, multi-family properties and self storage facilities; and home sales. With gross revenues exceeding one billion dollars on a consolidated basis, the Woodside Group has built over 25,000 homes and has approximately fifty projects pending in eleven states.
The firm is cocounsel to Intermet, one of the foremost independent suppliers of automotive cast components in the United States with over 160 years of manufacturing history, in its chapter 11 bankruptcy cases pending in Delaware.
The firm represented Empire Land and eight of its affiliated companies in their chapter 11 case in Southern California. The companies were residential land, homebuilding, and financing companies that developed masterplanned communities and other land and construction projects located mainly in California and Arizona.
The firm represents the official creditors' committee of the Catholic Bishop of Northern Alaska, aka the Diocese of Fairbanks. Geographically, this diocese is the largest Catholic diocese in the United States. The population of childhood sexual abuse survivors consists almost entirely of Native Alaskans resident in rural Alaska. The firm, on behalf of the committee, sued the Diocese, all of the parishes in the Diocese, and affiliated Catholic entities to establish the scope of property of the estate and to recover avoidable transfers.
The debtors are world leaders in the global relocation industry, providing relocation and moving services. SIRVA's well-known subsidiaries include North American Van Lines, Allied Van Lines, Allied Picksford and others. In these cases pending in the Southern District of New York, involving more than 60 debtors, the firm represented the creditors' committee and assisted it in slowing down the debtors' and secured lenders' attempt to quickly steamroll a prepackaged plan to confirmation, extensively litigating various confirmation and other issues, and ultimately forcing the debtors and lenders to settle on the terms of a reorganization plan.
The firm was cocounsel to the creditors' committee of Buffets Holdings, the nation's largest steak-buffet restaurant chain and the second largest restaurant company in the family-dining segment of the restaurant industry, operating under the names Old Country Buffet, Country Buffet, HomeTown Buffet, Ryan's and Firemountain. Just before filing, the debtors had 615 company-owned steak-buffet restaurants, eleven Tahoe Joe's Famous Steakhouse restaurants, and sixteen franchised locations collectively operating in forty-two states, and employed over 36,000 employees.
The firm represented Dunmore Homes in its chapter 11 cases. Dunmore Homes was a leading builder in California with twenty-six communities in various stages of development, and $250 million in institutional and trade debt. The principals had guaranteed substantially all of the lender debt.
The firm represented the creditors' committee in this chapter 11 case in Richmond, Virginia, involving approximately 4,200 retail locations.
The firm represents Aegis Mortgage Corporation, a Texas-based full-serviced mortgage company, and several of its related subsidiaries in their bankruptcy case pending in Delaware. Prior to the commencement of their chapter 11 cases, Aegis had lending operations in 49 states and offices in 24 states, generated approximately $800 million in monthly loan originations, and serviced approximately $3.6 billion in mortgage loans. Prior to the chapter 11 filing, Aegis originated wholesale Alt A and subprime loan as well as retail loans made directly to consumers.
The firm represents Irvine-based People's Choice Home Loan and two of its affiliates in their chapter 11 case. Warehouse line liquidity, repurchase requests, and reduced pricing for nonprime loans in the secondary market led to the filing. The company intends to utilize chapter 11 to explore financial and strategic alternatives with respect to its strong core assets.
The firm represents the official creditors’ committee in the chapter 11 case of Trans Continental Airlines and disgraced music promoter Louis J. Pearlman in their chapter 11 cases pending in the Northern District of Florida. Working cooperatively with the chapter 11 trustee and his professionals, the firm is seeking to enhance recoveries for creditors who were the victims of a Ponzi scheme estimated to have involved over $400 million dollars in assets by means of the investigation and institution of litigation against third parties and involvement in the criminal proceedings that led to Mr. Pearlman’s conviction, incarceration and cooperation with the trustee and federal authorities to uncover assets.
The firm represented the creditors' committee in the bankruptcy case of the Diocese of San Diego. Pleadings filed by the firm were instrumental in the bankruptcy court’s issuance of an order to show cause re contempt against the bishop, his counsel, all parishes, the parishes’ counsel, and two priests. The order resulted in the appointment of an expert whose report ultimately caused the Diocese to settle (dramatically increasing its initial offer to $198 million) and voluntarily dismiss its case.
The firm represents Mortgage Lenders Network USA, a Connecticut-based subprime mortgage loan originator and servicer in its chapter 11 cases filed in Delaware. Prior to its chapter 11 filing, MLN originated approximately $18 billion of subprime mortgage loans annually, and serviced approximately $17 billion of such loans.
The firm represented the creditors' committee in the bankruptcy case of Pacific Lumber Company and its affiliates. The case involved a wide range of timber-related assets, including over 200,000 acres of prime forestlands, a lumber mill, a cogeneration plant, and a company town. Through the efforts of the firm, the committee, as coproponent of a confirmed plan of reorganization, was successful in realizing an estimated 75% return for unsecured creditors, despite the fact that the company had approximately $900 million of senior secured debt and over $20 million in underfunded pension obligations.
The firm represents OwnIt Mortgage Solutions, a Southern California-based subprime mortgage lender in its chapter 11 case filed in Los Angeles. In 2005, OwnIt originated approximately $8.3 billion in subprime mortgage loans. OwnIt filed its chapter 11 case in late 2006.
The firm represented the chapter 11 trustee in the Pittsburgh bankruptcy of this bottling company, which allegedly defrauded investors and lenders of $806 million. The firm hired forensic accountants to reconstruct the company’s books and records after it was discovered that the company maintained two sets of financial records and destroyed numerous other documents. All hard assets were sold and a plan was confirmed that will allow for a liquidation trustee to pursue claims for the benefit of creditors.
The firm represented the creditors' committee in the chapter 11 case of the Diocese of Davenport. The committee was instrumental in the drafting of the plan of reorganization, which was approved by the bankruptcy court in 2008. The firm negotiated the most extensive nonmonetary provisions of any case to date, and was also able to negotiate the allocation of the contingency fee of the state court lawyers across all tort claimants in order to ensure that survivors who had retained counsel would not receive a smaller distribution than the survivors who emerged during the bankruptcy case and did not retain counsel.
The firm represented the creditors' committee for Spectrum Restaurant Group, Inc. Spectrum is the operator or former operator of such well-known casual dining chains as Grandy's, Prego, National Sports Grill, Harry's Bar & Grill, MacArthur Park and Guaymas. A plan was successfully confirmed in this case in August 2007.
The firm served as conflicts counsel to chapter 11 debtors Dana Corporation and 40 of its domestic direct and indirect subsidiaries. The Dana companies are leading suppliers of modules, systems, and components for original equipment manufacturers and service customers in the light, commercial and off-highway vehicle markets. The products manufactured and supplied by the Dana Companies are used in cars, vans, sport-utility vehicles, trucks, and a wide range of off-highway vehicles. The firm handled negotiations with key customers including Chrysler, Toyota and General Motors as well as negotiations and disputes with certain key suppliers.
The firm was cocounsel to JL French Automotive Castings and its affiliates in connection with their chapter 11 bankruptcy cases in Delaware. JL French produced a broad range of aluminum die-cast components and assemblies, including engine blocks, oil pans, transmission cases, engine covers, bedplates, ladderframes, cam covers, water pump housings, and front-end accessory drive brackets.
The firm represented the creditors' committee in Glazed Investments, a large Krispy Kreme franchisee that operated more than fifteen stores in the midwestern United States. Through the efforts of the firm, the committee negotiated a plan of reorganization with Krispy Kreme and Glazed that provided for an approximately 15% distribution to general unsecured creditors even though the assets were fully encumbered by senior liens.
G+G was a national retailer specializing in the sale of young women's and girls' clothing and fashion apparel. Prior to filing for bankruptcy, G+G had stores and outlets leased throughout 48 states, Puerto Rico, and the Virgin Islands, and a distribution center in New Jersey. Shortly after filing, G+G obtained court approval for a sale of substantially all of its assets as a going concern. Thereafter, the bankruptcy court confirmed G+G's chapter 11 plan of liquidation approximately 11 months after the petition date. The liquidating trustee anticipates that creditor recoveries will be approximately 50% on the dollar. This outcome is outstanding in light of the fact that at the petition date the company was on the verge of administrative insolvency.
The firm represented the creditors' committee of this manufacturer of engineered fibers in its chapter 11 case in New Hampshire and continues to represent the liquidating trustee appointed under a plan of liquidation proposed and confirmed by the committee. Foss filed bankruptcy after its CEO resigned amid allegations of numerous financial improprieties. The firm led the committee’s investigation into these matters and commenced litigation against the insiders seeking to hold them liable for, among other things, breach of fiduciary duty, illegal dividends and fraudulent transfers.
The firm represented the committee in this case, which involves twenty-six retail stores selling products designed for organizing the home and office.
The firm represented the creditors' committee of Tom's Foods, Inc. The debtor was a leading regional snack food manufacturer with a strong presence in the Southeast and Southwest, with manufacturing operations in California, Florida, Georgia, Tennessee, and Texas. The debtor manufactured over 250 snack-food products and had a distribution network servicing 43 states through more than 2,000 sales routes. The committee negotiated with the debtor regarding a sale of its assets, which were acquired by a competitor thereby allowing many vendors to continue their sales relationships.
We served as counsel to the official committee of unsecured creditors in the case of Irving Tanning Company , which is engaged in the business of treating and finishing cow hides into leather sold to manufacturers of leather products in the United States and worldwide. At the beginning of the case, the company's secured lender was insisting on a liquidation, and opposed the debtor's request to use cash collateral. The committee uncovered a potential claim against the secured lender and otherwise sought to resist efforts to liquidate the company. Ultimately, an orderly process for selling or reorganizing the company was established that resulted in a confirmed plan of reorganization that spared it from outright liquidation.
The firm represented the official committee of tort litigants (the “TLC”) in the chapter 11 case of the Catholic Diocese of Spokane. The TLC obtained the first ever trial court judgment that parish real property is property of the diocese. The Diocese negotiated a plan of reorganization with the TLC that has been confirmed.
Crescent was a leading West Coast-based specialty jewelry chain comprised of 123 stores located in 3 states with scheduled assets of $128 million and liabilities of $164 million. The firm represents the creditor's committee in this ongoing case, which currently features a sale process aimed at both strategic and financial buyers, together with efforts toward a negotiated plan of reorganization.
The firm represented Fresh Choice in its chapter 11 case in the Northern District of California in 2004. The firm confirmed a plan of reorganization that provided for an estimated 95% to 100% recovery to general unsecured creditors. At the time that the plan was confirmed, Fresh Choice owned and operated forty-six restaurants in California, Texas and Washington under the names Fresh Choice, Fresh Choice Express and Zoopa, including one dual-branded Fresh Choice Express and licensed Starbucks retail store and one licensed Starbucks retail store.
The firm represented this display-technology venture and its Bermuda subsidiary in U.S. chapter 11 bankruptcy cases in the Silicon Valley. The companies had spent $650 million to develop one of the largest intellectual property portfolios in the field-emission display-technology industry, and had public debt of over $350 million. The firm coordinated U.S. and Bermuda insolvency proceedings and assisted the companies in selling the stock of the bankruptcy remote company without triggering defaults, maintained the patents and prosecution of patents applications pending sale, and arranged and consummated a sale to Canon Inc.
The firm is counsel to the creditors' committee in the chapter 11 bankruptcy case of Sega Gameworks in the Central District of California. Gameworks was formed in 1986 as a joint venture among SEGA Enterprises, DreamWorks SKG and Universal Studios. The enterprise, headquartered in Glendale, California, includes fourteen full-scale location-based entertainment centers and four traditional video arcades.
RBX and its subsidiaries are the leading domestic manufacturers of rubber foam, plastic foam, and other polymer products, with annual sales of approximately $250 million. The cases were commenced when an involuntary petition was filed by the holders of $100 million in subordinated notes. Less than sixty days later, the firm filed a plan of reorganization, which was ultimately confirmed.
In 2004, Sam Maizel was appointed, pursuant to a request of the United States Securities and Exchange Commission, to serve as the examiner in the bankruptcy cases of Metropolitan Mortgage & Securities and Summit Securities, two financial services companies with more than $3.5 billion in debt and facing significant allegations of financial fraud. Sam's team, including the firm's attorneys Jeremy Richards and Jonathan Kim and forensic accountants, published two voluminous reports in six months, on time and within budget. The reports were the subject of compliments by opposing parties and the bankruptcy judge alike.
We served as cocounsel to Cable & Wireless USA, Inc. and its affiliates in their chapter 11 bankruptcy cases. As of the bankruptcy filing, C&W was the second largest hosting services provider in the U.S. and one of the largest carriers of internet traffic, focusing on blue chip Fortune 1000 companies. The confirmation of C&W's plan by the Delaware bankruptcy court resolved in excess of $6.8 billion in claims.
The firm represented Gingiss Group/Gary's Tuxedo's in connection with their chapter 11 bankruptcy cases filed in Delaware bankruptcy court. Gingiss/Gary's operated the only national chain of retail stores specializing in the rental and sale of formalwear with more than 400 stores and annual revenues exceeding $75 million and completed a sale of substantially all of their assets to May Department Stores less than sixty days after the bankruptcy cases were filed.
The firm represented the renowned publisher of Penthouse Magazine, now known as Penthouse Media Group, in its chapter 11 case. Penthouse Media is also engaged in internet, entertainment, and trademark licensing businesses. Turnarounds & Workouts listed this case as one of the most successful restructurings of 2004. Under the plan, unsecured creditors received cash and notes representing full payment of their claims.
The firm represents former heavyweight boxing champion Mike Tyson and his corporation Mike Tyson Enterprises, Inc. in chapter 11 cases in the Southern District of New York. During the case, the firm negotiated global settlements of litigation with Don King and Don King Productions and numerous other creditors and parties in interest, and negotiated and filed a joint plan of reorganization with the creditors' committee.
The firm was cocounsel to Fleming Distribution, one the larger distributors in the food service industry with $8 billion in annual revenue. The firm handled many aspects of the case, including the sale of one of the company's largest divisions. The company successfully reorganized.
The firm was cocounsel to this boiler manufacturer in a case involving asbestos issues, with respect to which a section 524(g) injunction was obtained on behalf of the liquidating trust.
The firm represented the creditors' committee in the Country Home Bakers case in Connecticut bankruptcy court. Country Home Bakers manufactured cookies, cakes, and bread-related products. A liquidating plan was confirmed in June 2004 and creditors are expected to receive more than a 40% distribution on account of their claims.
In this case, the firm represented the official committee of unsecured creditors in negotiating a restructuring of over $100 million of secured debt and $290 million of bond debt, all of which was accomplished in approximately four months.
The firm represented the official equity holders' committee of this company and its affiliates, which formed one of the largest growers, packers, haulers and marketers of fresh fruit and produce in California, with annual sales in excess of $200 million.
The firm represented the committee for one of the largest retailers of prerecorded music in the United States in its second chapter 11 case. Substantially all of the assets of Wherehouse were acquired by Trans World Entertainment in a bankruptcy court-approved sale.
Clarent, together with its worldwide subsidiaries, was a leading provider of software-based communications solutions that enabled service providers to deliver simultaneous transmission of voice, fax and data over Internet Protocol (IP) communications networks. The firm worked with the debtor to implement the sale of substantially all of the debtor's business assets, which sale was consummated less than sixty days after commencement of the case. The firm also handled the mediation of complex securities and insurance rescission litigation.
The firm served as counsel to the creditors' committee of unsecured creditors of Agway, Inc., one of the largest agricultural cooperatives in the United States. For many years, Agway marketed and sold to its grower members so-called “money market certificates” that were in fact subordinated debentures that Agway did not have the ability to repay. Agway permitted early purchasers of these instruments to redeem them, using the proceeds of subsequent sales of the same instruments until the financial house of cards collapsed. As counsel to the committee, the firm pursued claims against the officers and directors and outside auditors, and worked with the debtor’s crisis management team on asset liquidations that eventually yielded in excess of 65 cents on the dollar to the certificate holders.
The firm represented the debtor in the successful reorganization of Peregrine Systems, a major producer and distributor of business software systems whose operations had been plagued by accounting fraud. The firm helped the Peregrine divest itself of its Remedy division in chapter 11 for more than $350 million and confirmed a plan of reorganization restructuring more than $400 million of debt and providing a recovery for both shareholders and securities' fraud claimants. Shortly after its exit from chapter 11, reorganized Peregrine was acquired by HP.
The firm was cocounsel to Exide, one of the largest manufactures of lead acid batteries in the world, whose plan was confirmed in 2004.
The firm represented the creditors' committee of Winfirst, a "fiber to the home" provider of combined local telephone and cable-television service, together with high-speed internet access. Winfirst sold its assets to SureWest Communications as a going concern.
Caribbean Petroleum Corporation controlled 19% of the retail petroleum market in Puerto Rico through approximately 220 service stations, a 48,000 barrel-per-day refinery, a 2.2 million barrel tank farm, pipelines, and the only privately owned dock and terminal facility in San Juan Harbor. Notwithstanding in excess of $80 million of secured debt, the committee was successful in negotiating a consensual plan that provided for an effective-date distribution of 40% and distributions of an additional 30% over the three-year period following the effective date.
The firm represented the creditors' committee in the bankruptcy of a telecommunications line builder engaged in laying fiber optic cable throughout the United States. A reorganization plan, that restructured the company’s $450 million in debt, was confirmed within one year of the filing.
The firm acted as cocounsel for the examiner in Polaroid's bankruptcy case filed in Delaware bankruptcy court. Polaroid and its related debtors were the leading instant-imaging company in the world and the only manufacturer of traditional chemical-based instant cameras and film in the United States. The examiner was appointed to review financial information and, among other things, investigate whether Polaroid’s accounting practices or irregularities materially undervalued Polaroid’s assets and/or resulted in an inappropriate liquidation of Polaroid’s assets.
The firm served as cocounsel to this family of 157 entities (134 of which are debtors located in the United Kingdom and 23 are debtors located in the United States). The Federal Mogul entities, automotive and vehicle parts manufacturers, were faced with more than 300,000 asbestos personal injury lawsuits when they sought chapter 11 bankruptcy protection. The debtors' plan of reorganization was confirmed in 2007.
The firm represented the bondholders' committee in the At Home Corporation (Excite@Home) chapter 11 case. Bondholder claims were in excess of $750,000,000. The firm was instrumental in obtaining key settlements that resulted in a consensual plan of reorganization and the creation of a bondholders trust to pursue litigation against certain former directors and controlling shareholders. The case involved innovative use of mediation by the firm to resolve complex intercreditor issues under the subordination provisions of bond indentures, as well as an innovative strategy to reject costly customer contracts and replace them with contracts worth hundreds of millions of dollars.
The firm developed and negotiated a prenegotiated chapter 11 restructuring for this publicly traded company, the nation's largest independent provider of high-speed, dedicated service-line internet access. The case involved approximately $1.4 billion in bond indebtedness, securities fraud claims exceeding $2 billion, and $120 million in new financing. Covad confirmed its plan of reorganization within four months of the chapter 11 filing, and existing equity holders retaining an approximate 85% ownership interest in the restructured company.
Webvan Group and affiliates provided internet-based home delivery services for groceries and other products throughout the West before filing for bankruptcy in July 2001. Over $1 billion was invested in the companies and their operations prior to the filing. We assisted management in the orderly liquidation of the debtors' assets, and confirmed a liquidating plan in less than six months' time.
The firm represented the parent company of Pacific Gas & Electric Company, California's largest gas and electric utility, in connection with the utility's chapter 11 case and related issues. The utility case is the largest chapter 11 filing in California history, and with more than $24 billion in assets and more than $18 billion in liabilities, it is the second largest bankruptcy case ever filed in the United States.
The firm serves as cocounsel to W.R. Grace & Company and 61 of its subsidiaries in their chapter 11 cases. The debtors are engaged in specialty chemicals and materials businesses operating on a global basis with annual revenue of $3.3 billion. The debtors are using the bankruptcy process to address their significant asbestos-related liabilities.
The firm represented the creditors' committee of Software Logistics Corporation d/b/a iLogistix, provided global supply chain management services to some of the largest technology companies in the world. The committee played a pivotal role in a going-concern sale and proposed a plan of liquidation for iLogistix that resulted in substantial recoveries for unsecured creditors.
The firm represented the creditors’ committee of Loews in cross-border bankruptcy proceedings of Loews and its Canadian subsidiaries. Loews was at that time the second largest movie theater chain in the world, with over 3,500 screens and revenues exceeding $1 billion. The firm was also involved in the Canadian CCAA proceedings on behalf of the creditors’ committee, and ultimately negotiated a plan that provided for a meaningful distribution to general unsecured creditors.
The firm represented the creditors' committee in the Bugle Boy Industries bankruptcy case. Bugle Boy was a clothing manufacturer and operated several hundred retail stores throughout the country. Although a distribution to general unsecured creditors seemed unlikely when the cases were filed, a liquidating plan was confirmed in June 2002 that provided for a distribution to creditors.
We represent this national home and home-products retailer, which had 200 stores at the commencement of its pending chapter 11 case.
The firm represented the committee for Northpoint, a nationwide provider of DSL internet services to 100,000 subscribers, with unsecured debt exceeding $520 million. The company's assets were sold to AT&T for $135 million.
We were counsel to this well-known air carrier, which was sold to American Airlines in its chapter 11 case.
The firm served as principal bankruptcy counsel for this leading U.S. paper producer. Working with the company, we successfully sold the business, resolved and restructured billions in claims including $3.2 billion of Superfund claims, and confirmed a plan.
The firm represented the creditors' committee of General Cinema Theatres, which was at the time of its chapter 11 filing the eighth largest theater chain in North America with approximately 750 screens mostly in the Midwest and Northeast.
The firm represented this sixth-largest motion picture exhibitor in North America, with more than 200 theaters in 23 states. In less than a year from the petition date, the debtors successfully confirmed a plan of reorganization that provided for recovery in full by the unsecured creditors of certain debtors and a limited recovery for other unsecured creditors.
At the time of its chapter 11 bankruptcy, Tri-Valley was the largest canner of peaches in the nation and a major processor of tomatoes and tomato products. The firm was chapter 11 counsel to this nonprofit agricultural cooperative with annual revenues of approximately $800 million. With DIP financing put in place in advance of the summer "pack," the debtor was sold to its secured lenders through a negotiated plan of reorganization in a case that concluded in less than one year.
The firm acted as counsel to informal bondholders' committee in the chapter 11 case of Safelite Glass, which operated two manufacturing facilities, 80 auto glass warehouses, and more than 500 Safelite(R) AutoGlass service centers in 50 states, employing more than 6,000 associates nationwide.
The firm represented this publicly traded company, the nation’s leading manufacturer of asphalt plants, soil remediation plants, combustion systems, and screening equipment for the road and highway construction industry, in its chapter 11 case in Florida. Initially commenced as an involuntary bankruptcy by the company’s lenders, which were owed approximately $110 million, the case resulted in a confirmed full payment plan that left existing equity intact.
The firm represented the official joint borrowers committee in the bankruptcy of this subprime mortgage lender. The committee represented over 18,000 individuals who had obtained mortgages from First Alliance. At the time of filing bankruptcy, the debtor was under attack by several state attorneys general, AARP, and individual borrowers all claiming that First Alliance used unfair and deceptive sales presentations in the solicitation of its mortgage loans. Through the efforts of the committee, the FTC, the various state attorneys general, among others, a plan of liquidation was achieved in which the consumer borrowers recovered over $60 million. The plan included a settlement of the litigation then pending against First Alliance, which at the time was the largest settlement ever achieved by the FTC in a consumer fraud case.
AmeriServe was the largest food distribution company in the United States, with approximately $9 billion of annual revenues. In the chapter 11 case, all of AmeriServe's assets were sold, and a liquidating plan was confirmed.
AgriBioTech and its subsidiaries were the sixth largest producer of turf grass seed and forage seed in the world. The result of an industry roll-up of thirty four separate companies, AgriBioTech had combined revenues of approximately $400 million in the year prior to its bankruptcy. The firm negotiated far-reaching settlements with major constituencies and a series of going-concern sales before confirming a plan of reorganization. During the case, we developed a cross-border protocol and coordinated the chapter 11 case with a Canadian reorganization proceeding of a Canadian affiliate, including linking a U.S. and Canadian judge for combined videophone hearings.
We represented the ad hoc committee of senior secured noteholders in the chapter 11 case of this well-known undergarment manufacturer.
Breed Technologies and affiliates were worldwide leaders in the design, development, manufacture, and sale of vehicle safety components, and had annual revenues of $1.3 billion and debt of $1.6 billion as of the petition date. The firm successfully confirmed a chapter 11 plan that accomplished an internal reorganization.
Zenith Electronics, one of the world's largest electronics manufacturers, was sold as a going concern through a pre-packaged bankruptcy that resulted in payment of 100% of all creditors' claims.
Harnischfeger and fifty-nine subsidiaries manufacture and market pulp and papermaking machinery and mining equipment with annual sales of $2 billion, and confirmed a plan to conclude their chapter 11 cases.
We successfully confirmed a plan in this chapter 11 case of the nation's second largest rice processor and distributor, with revenues exceeding $400 million and liabilities exceeding $200 million.
Sizzler, the NYSE operator of the iconic international restaurant chain with annual systemwide sales of over $900 million as of the petition date, successfully confirmed chapter 11 reorganization plans within one year after the cases were filed.
The firm represented bondholders and formulated a consensual plan of adjustment in this chapter 9 municipal bankruptcy case.
The firm represented an official subcommittee of employee organizations in the Orange County chapter 9 case and represented the chairman of that employee subcommittee in his role as a member of the official creditors’ committee. Before he joined the firm, Henry Kevane served as counsel to the unsecured creditors' committee and played an active role in formulating, negotiating, and supporting passage of the county's pivotal recovery legislation.
The firm confirmed a plan of reorganization for this publicly traded real estate investment fund. It was one of the largest cases ever filed in California's Eastern District, with over $150 million in debt, approximately 29,000 shareholders, and more than $200 million in equity interests.
One of the nation's largest independent distributors of business telephone systems and a reseller of long distance service, TIE had over $100 million in annual sales. As a result of the firm's efforts, the company was sold as a going concern for approximately $43 million, and a plan of reorganization was confirmed.
The firm represented the creditors' committee of America West, a major, Phoenix-based regional airline. The firm confirmed a consensual plan of reorganization based on a path-breaking strategic alliance with Continental Airlines. Creditors who received stock in the reorganized airline were repaid in full with postpetition interest.
As counsel for the creditors' committee in the bankruptcy proceedings for the parent company of Executive Life Insurance Company and Executive Life Insurance Company of New York, with unsecured debt, including contingent claims, in the billions of dollars, the firm took the lead role in negotiating a committee-sponsored plan of reorganization that was confirmed less than eighteen months after the bankruptcy was filed.