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Special Interest Committees

We have considerable experience working with special interest committees or subcommittees representing equity security holders, bondholders, franchisees or members of organizations. Examples of this include:

At Home
The firm represented the bondholders' committee At Home Corporation (Excite@Home) chapter 11 case. The claims of the bondholders were in excess of $750,000,000. The firm was instrumental in the development of the key settlements that resulted in a consensual plan of reorganization and the creation of the Bondholders Liquidating Trust to pursue litigation against certain former directors and controlling shareholders of the company for breach of fiduciary duty. The case involved innovative use of mediation by the firm to resolve complex inter-creditor issues under the subordination provisions of the indentures for the bonds as well as a separate but equally effective coordinated strategy to reject costly and unprofitable contracts with At Home's cable company customers and replace those contracts with hundreds of millions of dollars of cash payments by those customers for limited access to At Home's network during the expedited time period during which the cable companies moved to different networks.

American Adventure
We represented the interests of over 16,000 active members of this national campground company, and confirmed a plan by raising more than $8 million from some 10,000 members. The plan reduced secured debt by over $40 million and gave members a 49% shareholder interest in the reorganized company.

Barry's Jewelers
We represented the official bondholders committee, which represented more than $53 million of secured debt, in the successful reorganization of Barry's Jewelers, a 130-store retail chain. A plan was confirmed in just over a year; the bondholders acquired a 55% stake in the reorganized company.

Cirrus
We were counsel to an unofficial bondholders' committee, which represented more than $150 million of secured notes issued by this high-tech manufacturer.

First Alliance Mortgage Company
The firm represented the Official Joint Borrowers Committee in the bankruptcy of this sub-prime 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.

Fruit of the Loom
We represented the ad hoc committee of senior secured noteholders in the chapter 11 case of this well-known undergarment manufacturer.

FundAmerica
We successfully negotiated a settlement for the creation of a multi-million dollar fund to pay claims of independent marketing representatives of this multi-level international marketing organization.

Home Fed Corporation
We represented an official bondholders committee, with more than $115 million of bond debt, in a reorganization involving the parent company to Home Fed Corporation, formerly one of the nation's largest savings-and-loan institutions. We filed an involuntary petition in bankruptcy to prevent any dissipation of the holding company's assets.

House of Fabrics
The firm represented the official equity holders' committee in the chapter 11 case of this national fabrics retailer. The firm successfully negotiated a plan of reorganization that provided for equity's receipt of a small share in the reorganized company and valuable warrants to purchase an additional 15% of its stock.

Pioneer Take-Out Corporation
We served as co-counsel to the official franchisee committee in the chapter 11 case of this regional fast-food franchisor, representing the interests of approximately 250 franchisees.

Sun World International
We 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.