Representative Matters

Debtors

  • Currently representing a fast-food franchisee with approximately 100 locations nationwide in out-of-court workout negotiations and contingency planning.
  • Reorganized The Walking Company, an $80-million publicly traded retailer of specialty footwear, in a successful and rapidly executed Chapter 11 case that resulted in the payment in full of all unsecured creditors; a $10-million recapitalization of the company; renegotiation of significant lease obligations; and the preservation of all of the company’s stores, substantially all of its employees and its management team.
  • Represented New Meatco, a Southern California importer and distributor of meat, poultry and seafood products, in its Chapter 11 liquidation, which centered on the investigation, preservation and prosecution of significant avoidance actions, D&O claims and other bankruptcy-related litigation.
  • Guided a $35-million Southern California manufacturer and distributor of toner cartridges through an out-of-court workout, followed by the sale of its two operating subsidiaries.
  • Secured a significant restructuring and reduction of the secured obligations of Nomoto Investments, LLC, a single-asset real estate debtor operating a shopping center and strip mall, through mediation and confirmation of a Chapter 11 plan.
  • Successfully represented Cynergy, a single-asset real estate debtor, in avoiding a receivership, arranging for a sale of its real estate holdings and resolving various member disputes, resulting in the payment in full of creditors and distributions to equity holders.
  • Participated in the representation of the Siena Hotel Casino & Spa in its Chapter 11 case, which resulted in the successful sale of the businesses at a bankruptcy auction.
  • Represented a national tanning salon franchisor with an assignment for the benefit of creditors. The transaction involved a strategic roll-up of various operating entities, followed by the assignment of its assets, which enabled the company to resolve its liabilities and improve its operating structure in a fraction of the time and expense of a traditional bankruptcy.
  • Represented International Norcent Technology, Inc., a $13-million manufacturer and marketer of consumer electronic products, in a Chapter 11 bankruptcy proceeding in response to a $45-million federal court judgment for patent infringement.
  • Represented Sun World International, Inc., a publicly traded fresh vegetable and fruit grower and shipper generating $115 million in revenue, in its successful Chapter 11 reorganization.
  • Represented Custom Food Products, Inc., a publicly traded meat and poultry processor with $109 million revenue, in the implementation of Chapter 11 reorganization through a Dutch auction that successfully took the company private.
  • Represented Steel Horse Automotive, Inc., a $70-million manufacturer and distributor of after-market automotive accessories, in conducting orderly sales of its operating divisions. All sales were successfully completed on time, despite a fire that destroyed a main manufacturing facility three days before the scheduled auction.
  • Represented World Bazaars, Inc., a $55-million importer, in disposing of the assets in its 600,000 square foot warehouse – and in the process, quelling an employee walkout and picket of the debtor’s facilities and obtaining employee support for the liquidation effort.
  • Represented numerous individuals and companies, including real estate developers, trucking companies, hospitals, medical practice groups, medical equipment manufacturers, retailers and printing companies in successful workout negotiations and other out-of-court solutions to financial challenges ranging from ongoing business losses, potentially catastrophic litigation claims and judgments, failed pension plans, receivership actions, over-leverage and insufficient liquidity.

Official Committees of Unsecured Creditors

  • Representing the creditors’ committee for Fresh & Easy, LLC, a major grocery retail chain.
  • Representing the creditors’ committee for Todd-Soundelux, LLP, the largest post-production sound studio in the nation, with respect to its pending Chapter 11 bankruptcy case
  • Represented the creditors’ committee of Contessa Premium Foods, Inc. in Chapter 11 proceedings, successfully opposing an initial quick sale process and instead securing an auction process that resulted in the approval of the highest and best bidder for the debtor’s assets, resulting in 100 percent recoveries for unsecured creditors.
  • Represented the creditors’ committee for AuraSound and played an instrumental role in ensuring that a litigation trust was established, and certain policy provisions were properly addressed, so as to preserve and pursue potentially significant D&O litigation claims for the benefit of creditors.
  • Represented the creditors’ committee of Little Tokyo Partners, LP in the Chapter 11 case for the New Otani Hotel and the adjacent retail center in downtown Los Angeles, successfully achieving 100 percent recoveries for unsecured creditors.
  • Represented the creditors’ committee of McGrath’s Publick Fish House, Inc. in the Chapter 11 case of this $17-million restaurant chain. Successfully obtained an additional $1.5 million cash payment for unsecured creditors.
  • Represented the creditors’ committee for Right Start, one of the largest national specialty retailers of juvenile products, and Baby Style, an online retailer of maternity and baby clothes and products, in their liquidating Chapter 11 case.
  • Represented the creditors’ committee in the Chapter 11 case for real estate developer Norman J. Salter, with a large number of real property interests and personal guaranty liability in the hundreds of millions of dollars. The representation included a significant investigation of potential claims and the resolution of tax issues to provide creditor distributions.
  • Represented the creditors’ committee of Crew Creative Advertising, LLC, a $10-million advertising company, in Chapter 11 proceedings.
  • Represented the creditors’ committee of California real estate investor Robert Henry Bisno in Chapter 11 proceedings.
  • Represented the creditors’ committee of Karawia Industries, Inc., a Southern California security and janitorial company, in Chapter 11 proceedings.
  • Represented the creditors’ committee of Bodies in Motion, a regional fitness club, in connection with efforts to sell its business. Successfully opposed the debtor’s proposal to sell the company to an insider and instead secured the approval of the highest and best bidder for the debtor’s assets, as selected by the committee, resulting in significant additional recoveries for unsecured creditors.
  • Served as co-counsel to the creditors’ committee for The Walking Company, an $83-million revenue footwear retailer. Successfully opposed the debtor’s sale efforts and insider-sponsored plan, resulting in the sale of the company to a third party and significantly enhanced creditor recoveries.

Other Insolvency Matters

  • Representing the successful acquirer of a software company at a bankruptcy auction in the Northern District of California.
  • Represented the successful acquirer of the assets of bankrupt shoe retailer Steve’s Shoes at a bankruptcy auction in Kansas City, as well as numerous other investors evaluating potential distressed transactions and/or bidding at bankruptcy auctions.
  • Successfully represented secured and unsecured creditors seeking to propose and confirm creditors’ plans in pending Chapter 11 cases.
  • Represented trustees of creditor trusts established pursuant to liquidating Chapter 11 plans, individual committee members and unsecured creditors asserting claims or defending against avoidance actions in bankruptcy cases across the country and various other parties with interests in Chapter 11 cases.
  • Represented one of the largest commercial banks in the country in its capacity as indenture trustee in connection with significant Chapter 11 cases in the telecommunications, airline and steel industries.
  • Currently representing the acquirer of certain assets and litigation rights in the defense of an appeal pending in the Northern District of California.
  • Represented several parties in both pursuing and defending against appeals of bankruptcy court orders, including orders approving a bankruptcy sale, bankruptcy settlement and denying a bankruptcy claim.
  • Advise boards of directors with respect to bankruptcy-related matters such as the risks associated with potential defaults or bankruptcies by third parties – vendors, customers and landlords – minimizing preference and credit risk exposure when dealing with financially distressed business and resolving preference litigation.
  • Advised companies regarding the use of complex financial tools such as accounts receivable put option contracts designed to minimize credit risk.
  • Represented the trustee appointed under the Securities Investor Protection Act in the SIPC liquidation proceeding for a Glendale, California, securities firm.