Major Bankruptcy Cases

Family Christian, LLC
Representation of Official Committee of Unsecured Creditors
The debtors – one of the nation’s largest retailers of Christian books and church supplies – had sales of $216 million from 266 stores in 36 states and about 3,000 employees. The Fox team led by Michael successfully opposed an early sale to an insider stalking horse bidder and later opposed a $42 million auction sale. Ultimately, the Bankruptcy Court approved a $50 million sale in a liquidation plan that effectively protected the creditors’ best interests by ensuring that the stores would remain open and most employees would keep their jobs.

Downey Financial Corporation
Representation of Chapter 7 Trustee
Debtor was the parent of a large savings and loan taken over by the FDIC. A Fox team led by Michael secured a $390 million verdict in the Bankruptcy Court for the benefit of the creditors after several years of hard-fought, complex litigation. The FDIC appealed and Fox defended the judgment before the Third Circuit Court of Appeals affirmed the Bankruptcy Court’s judgment and verdict in favor of the Trustee. The Trustee has received payment of the full amount of the verdict for the benefit of the debtor’s estate.

AF-Southeast, LLC, Allied Fiber–Florida, LLC and Allied Fiber–Georgia, LLC
Lead counsel for Debtors
The Debtors owned and operated a telecommunications network that spanned from Atlanta, Georgia, to Miami, Florida. The purpose of the Debtors’ Chapter 11 cases was to sell their assets as a going concern to the highest and best bidder. Michael led a team that negotiated with lenders and secured court approval for the retention of a chief restructuring officer. In July 2016, three months after the initial filing, the Court approved the sale of substantially all assets to a stalking horse bidder. The Court approved the final plan of liquidation in January 2017.

HMR Foods Holding LP
Representation of Chapter 7 Trustee
Debtors, one of the nation’s leading manufacturers of prepared foods sold in premier grocery and club stores, filed a voluntary Chapter 7 petition in U.S. Bankruptcy Court for the District of Delaware. Michael negotiated a sale of the assets of the debtor’s Canadian affiliate for $5.2 million, and later won Bankruptcy Court approval to conduct a public auction and sale of approximately 800 lots of equipment at the debtors’ production facility, for additional proceeds in excess of $1.8 million.

Hess Industries, Inc. and Hess Engineering
Representation of the Chapter 7 Trustee
Debtor engineered, fabricated and installed custom metal-forming equipment and integrated manufacturing systems primarily for the automotive industry. Hess Industries utilized proprietary patented technologies to develop complex and highly customized spinforming, flowforming and rollforming machines to streamline assembly lines and manufacturing processes. Michael led the Fox team that won Bankruptcy Court approval for a sale of substantially all of the assets of Hess to a Chinese-based company for $19.25 million. The transactions were complex due to the involvement of foreign buyers, which required thorough analysis of Commerce Department and ITAR issues.

TransVantage Solutions, Inc., TransVantage Forwarding, Inc. and TransVantage Transportation, Inc.
Representation of the Chapter 7 Trustee
The Debtors were integrated businesses providing freight transportation, auditing and payment services to its customers. Michael led an investigation of the Debtors and owner, leading to the Trustee’s settlement with the Debtors’ owner for turnover of all real and personal property owned directly or indirectly by the owner and non-debtor affiliated entities, including certain non-debtor insiders. Michael’s team also commenced more than 500 adversary proceedings seeking more than $500 million. Most of the claims settled, generating millions of dollars in proceeds for creditors.

LTC Holdings, Inc.
Representation of the Chapter 7 Trustee
LTC and several related companies filed a voluntary petition for relief under Chapter 7 in the District of Delaware. Prior to the bankruptcy filing, the Debtors were a government construction contractor, with active projects in the United States, Guam, Iraq, Afghanistan, Japan and other countries. Michael led a team that assisted the Trustee and special counsel in an arbitration before the London Court of International Arbitration that resulted in a $21 million settlement. The team also negotiated 35 separate sales of equipment and machinery, as well as interests of the Debtors, generating more than $1.1 million in proceeds.