Debtors

Bankruptcy offers powerful tools, such as the rejection of onerous contracts and leases and the ability to sell assets free of liens or unwind certain transactions. It also provides the debtor with in rem jurisdiction across the United States to resolve its issues.

Fox Rothschild’s national team of financial restructuring and bankruptcy attorneys has extensive experience guiding companies of all sizes through out-of-court workouts, successful reorganizations and going-concern sales in all types of Chapter matters, including 7, 11, 12 and 15, as well as Subchapter V cases.

Recognized by clients in the Chambers USA Guide for our work in this area and noted for our “pragmatism, analysis of fact and presentation of sensible options,” we provide strategic and forward-thinking solutions that help financially imperiled businesses achieve their goals.

We represent debtors across a vast spectrum of industries – from energy to entertainment, health care to hospitality, retail to real estate and much more. Large, small and mid-size companies in distress trust in the proficiency, reputation and advocacy of our renowned team to resolve bankruptcy matters in jurisdictions across the United States and through consensual agreements with creditors outside the scope of a courtroom.

Our debtor representations by industry include:

Energy

  • Global Power Equipment Group (Del., Ch. 11)
  • Martifer Aurora Solar, LLC and Martifer Solar USA, Inc. (Nev., Ch. 11)
  • Red Rose and other solar companies (Nev., Ch. 11)
  • Zenernet, LLC (ND Cal., Ch. 7 Sub. V)

Entertainment & Sports

  • 3G Productions (Nev., Ch. 11 Sub. V)
  • Frank Theatres and affiliates (NJ, Ch. 11)
  • Pro Skate Operations LLC (a/k/a Pro Skate USA) (NJ, Ch. 11)

Financial Services

  • 4X Corporation (ED Wis.)
  • Cash Cloud, Inc. DBA Coin Cloud (Nev., Ch. 11)
  • Cynergy Group, LLC (CD Cal., Ch. 11)
  • Nomoto Investments, LLC (CD Cal., Ch. 11)
  • P.K. Lenders Group (Nev., Ch. 11)
  • Student Finance Corporation (Del., Ch. 7)
  • SureFunding (Del., Ch. 11)

Food & Beverage

  • Custom Food Products, Inc. (CD Cal., Ch. 11)
  • Gaspari Nutrition, Inc. (NJ, Ch. 11)
  • Montesquieu (Del., Ch. 11)
  • Omtron USA LLC (d/b/a Townsends, Inc.) (Del., Ch. 11)
  • Sun World International, Inc. (CD Cal., Ch. 11)

Gaming

  • American Wagering / Leroy’s Sports Book (Nev., Ch. 11)
  • Elsinore Gaming (Nev., Ch. 11)
  • Fitzgerald Gaming (Nev., Ch. 11)
  • Nevada Gaming Partners LLC (Nev., Ch. 7)
  • In re Revel AC Inc., et al. (NJ, Ch. 11)
  • Stratosphere Gaming Corporation (Nev., Ch. 11)

Health Care

  • Hanover Hills Surgery Center LLC (NJ, Ch. 11)
  • Hazel Hawkins Memorial Hospital (ND Cal., Ch. 9)
  • Hudson Healthcare, Inc. (NJ, Ch. 11)
  • Lakeview Subacute Care Center, Inc. (NJ, Ch. 11)
  • Palm Drive Hospital (ND Cal., Ch. 9)
  • Vista Hospital System (CD Cal., Ch. 11)

Hospitality

  • Hi-Five Industries, LLC, On South Lake Street, LLC & Wild Game Ng, LLC (Nev., Ch. 11)
  • Metro Plaza Hotel, LLC (NJ, Ch. 11)
  • Vacation Charters (Split Rock Lodge) (MD Pa., Ch. 11)
  • Village Hotel Investors, Village Hotel Holdings (Nev., Ch. 11)

Life Sciences

  • Immunicon Corp. (Del., Ch. 11)
  • Lannett Company, Inc. (Del., Ch. 11)
  • Regen Biowellness (NJ, Ch. 11)

Manufacturing

  • In re Adoc Holdings, Inc., et al. (f/k/a Coda Holdings, Inc.) (Del., Ch. 11)
  • Diamond Glass, Inc. and its affiliates (Del., Ch. 11)
  • Fleer/Skybox International, Inc. (Del., Ch. 11)
  • Global Safety Textiles (Del., Ch. 11)
  • Handy Button (ND Ill., Ch. 11)
  • Ingersoll, Inc (ND Ill., Ch. 11)
  • Pallet Company LLC (f/k/a iGPS Company LLC) (Del., Ch. 11)
  • Paragon Paper, Inc. (NJ, Ch. 11)
  • Polycel Structural Foam, Inc. (NJ, Ch. 7)
  • Quality Home Brands (Del., Ch. 11)
  • RM Precision Swiss, Inc. (Nev., Ch. 11)
  • Steel Horse Automotive, Inc. (CD Cal., Ch. 7)
  • U.S. Aggregates, et al. (Nev., Ch. 11)

Media

  • Atlantic Broadcasting (NJ, Ch. 11)
  • Princeton Video Image Inc. (NJ, Ch. 11)

Mining

  • Gypsum Resources Materials, LLC and Gypsum Resources, LLC (Nev., Ch. 11)
  • Veris Gold Corp. et al (Nev., Ch. 15)

Real Estate and Construction

  • American West Development, Inc. (Nev., Ch. 11)
  • Assuncao Bros (NJ, Ch. 11. Sub. V)
  • Avery Land Group (Nev., Ch. 11)
  • Bishop Gorman Development Corporation (Nev., Ch. 11)
  • FX Luxury Las Vegas I, LLC (Nev., Ch. 11)
  • Kara Homes, Inc. and its affiliates (NJ, Ch. 11)
  • Lee & Associates Commercial Real Estate Services Nevada, Inc. (Nev., Ch. 11)
  • McQuade Construction Companies, et al. (ED Pa., Ch. 7)
  • Mohave Agrarian Group LLC (Nev., Ch. 11)
  • Orcutt Rancho, LLC (CD Ca. Ch. 11)
  • WCI Communities (Del., Ch. 11)
  • Whitton Corporation (16 single asset real estate development) (Nev., Ch. 11)

Retail

  • Central Jersey Supply Co. (NJ, Ch. 11)
  • Gracious Home and certain of its affiliates (SDNY, Ch. 11)
  • L’Occitane (NJ, Ch. 11)
  • Oskar Huber, Inc. (NJ, Ch. 11)
  • World Bazaars, Inc (CD Cal., Ch. 11)

Tech

  • Cintra Software & Services, Inc. (SDNY, Ch. 11)
  • International Norcent Technology, Inc. (CD Cal., Ch. 7)
  • North American Deed Company, Inc. (Nev., Ch. 11)
  • South Tech Simmons 3040C, LLC (Nev., Ch. 11)

Representative Debtor Matters

Preceding Bankruptcy

  • Represented the debtor and debtor in possession in the bankruptcy of Atlantic Broadcasting, a radio broadcast business involving five AM and FM stations serving the southern New Jersey community. We handled the pre-filing planning and negotiations with the secured lender and guided the Chapter 11 process, resulting in a global settlement with the secured creditor that funded the proceedings, completion of a competitive bid/sale process and confirmed plan that provided a carve-out for unsecured creditors.
  • Represented GeM Solutions, Inc., a public company technology services firm, in its successful restructuring. We handled the pre-filing planning and negotiations with the secured lenders and oversaw the Chapter 11 process resulting in a reorganization debt-to-equity plan that preserved the public entity and provided creditors with a return in the form of stock in the reorganized business.

Chapter 11

  • Represent L’Occitane Inc., a prominent national retail chain specializing in beauty and well-being products, in its Chapter 11 bankruptcy case. The case, with $160 million in liabilities, resulted in a confirmed plan with a 100% distribution to creditors. Our team formulated the bankruptcy strategy; helped negotiate over 100 lease amendments and the rejection of 40 leases at underperforming stores to right-size the company’s brick-and-mortar footprint in the United States; addressed and resolved various issues raised by the Committee, either consensually or with court intervention; worked with the debtor’s parent regarding post-bankruptcy financing; prepared and helped confirm the Chapter 11 plan; and most recently resolved cure disputes and claims reconciliation and closed the bankruptcy case.
  • Represented national solar and roofing companies in a Chapter 11 bankruptcy case. The debtors were facing multiple challenges including WARN Act liability, lender liability, consumer pre-financing under solar contracts, PPP loans and accusations of breaches of fiduciary duty by founders and accountants. In order to make the case consensual, Fox negotiated with secured creditors and regulators for the appointment of Chief Restructuring Officer and independent board members and successfully completed multiple sales of divisions.
  • Represented public company Immunicon Corporation, et al. in its successful going concern sale and Chapter 11 processes, which involved multiple layers of public debt and equity, as well as a complicated sale process due to significant regulatory overlay and IP issues in multiple countries. We completed pre-bankruptcy planning, the post-bankruptcy filing sale and plan confirmation, which resulted in a 100%-plus distribution to creditors and left significant funds for equity holders.

Subchapter V

  • Represented Central Jersey Supply Co. (CJS), a multi-generational family-run business that served as an industrial supply house specializing in selling pipe fittings, valves and related products, in its Subchapter V Chapter 11 bankruptcy proceeding filed in the District of New Jersey. We filed a Chapter 11 for CJS on the eve of an eviction action brought by its landlord and business partner in New Jersey state court. We attempted to negotiate a global resolution with the landlord as part of a consensual plan of reorganization, but the economics of the situation and industry led instead to the consensual liquidation of the company. Our team successfully objected to the landlord’s prepetition claim in its entirety, which led to a significant payout to the debtor’s legitimate creditors following liquidation of the estate.
  • Represent a Subchapter V debtor that produced cosmetic and anti-aging products sold through Amazon, Costco and QVC. The matter involved complex litigation among business partners, among others. Fox helped negotiate an intricate settlement agreement among a number of parties, including the debtor’s secured creditor, that resolved the litigation and allowed the debtor to emerge from bankruptcy through a structured dismissal to pursue new business opportunities. The bankruptcy case was originally filed in Nevada and transferred to New Jersey.
  • Represented Assuncao Bros., Inc., a 65-year old construction company with approximately 30 pending bonded and non-bonded jobs, in its Subchapter V bankruptcy proceeding. We filed a motion on shortened time to sell the debtor’s assets and subcontract 12 non-bonded projects to the buyer. The sale, valued at approximately $5 million, was approved just 20 days after the petition date.