Representing Companies in Chapter 11
- DB Companies, Inc., a chain of 150 convenience stores and gas stations in the northeast, with revenues of $175 million. We represented the company in selling its retail locations through Chapter 11.
- Groves in Lincoln, Inc., a senior living facility with outstanding bond debt of $88 million. We represented the company in its Chapter 11 case in which the business was successfully sold as a going concern.
- Helicos BioSciences Corp., a publicly held manufacturer of gene sequencing equipment. We represent the company in its pending Chapter 11 case focused on maximizing the value of its intellectual property.
- BioTransplant Incorporated, a publicly-held developer of therapeutics to suppress undesired immune responses. We represented the company in connection with its liquidating Chapter 11 plan under which creditors were paid in full.
- New Hampshire Electric Cooperative, Inc., an electric utility with approximately 60,000 customers and $270 million in debt. We represented the utility in obtaining confirmation of a Chapter 11 plan that restructured debt resulting from investment in a nuclear power plant while maintaining the utility as an independent company.
- Sigg Switzerland (USA), Inc., the American affiliate of a worldwide seller of water bottles. We served as counsel to the company, achieving a successful sale of the company’s business in Chapter 11 within 60 days of the filing.
- Waste Systems International, Inc., a solid waste disposal company with liabilities of $150 million. We represented the company in its successful Chapter 11 reorganization, in which the equity sponsor retained ownership in exchange for an additional investment.
- Raytech Corporation, a manufacturer of brakes and clutches for the automotive industry facing $3 billion of asbestos personal injury claims. We represented the company in obtaining confirmation of a Chapter 11 plan establishing a trust for the payment of asbestos claims.
- NordicTrack, Inc., a manufacturer of exercise equipment with peak sales of $480 million. We represented the company in its Chapter 11 case involving sale of the company’s trade name and inventory.
Accomplishing an Out-of-Court Restructuring
- A mid-sized Connecticut manufacturing company. We represent the company in an out-of-court restructuring with its senior lender and several creditor constituencies.
- Diam International, Inc., a designer and manufacturer of retail product displays with sales of $250 million. We represented the company in an out-of-court restructuring whereby almost half of its revolving credit facility of $100 million was forgiven, and the common stock remained in the hands of the equity sponsor.
- Insurance Holdings of America, an insurance marketing and technology company with liabilities of $30 million. We served as creditors’ trustee under an out-of-court wind-down arrangement approved by creditors as a quicker and less expensive alternative to bankruptcy.
- Education Loan Services, Inc., a loan-servicing company responsible for $3.4 billion in student loans owned by 80 different client financial institutions. We represented the company in an out-of-court program successfully transferring the loan portfolios to other servicers while avoiding the enormous loss to clients that would have resulted from a sudden cessation of servicing.
- In addition, the firm has represented many companies in closing down with a minimum of disruption, litigation and adverse publicity, utilizing self-managed liquidations, assignments for benefit of creditors, and other legal tools.
Creditors’ Rights Litigation
- We served as lead counsel for the plaintiff in a federal court action seeking to set aside over $28 million in fraudulently transferred assets and, with federal prosecutors, in enforcing a $3.275 billion dollar restitution order.
- We recovered an $11 million judgment for a bank client in the Massachusetts Superior Court in connection with litigation brought against guarantors of a failed 200 unit condominium development.
- We successfully represented a publicly traded regional bank in lender liability case involving a failed 108 unit housing development. After a ten day trial in Superior Court, we recovered $4.8 million judgment for the bank client plus attorneys’ fees and defeated entirely a $5.8 million counterclaim asserted by the developer.
- We represent the principal of a major heating oil distributor facing millions of dollars of liabilities in connection with the company’s failure.
- We represented managers affiliated with a Fortune 500 company in resolving creditors’ claims arising out of the failure of a subsidiary.
- We regularly counsel directors and officers, as well as the companies they serve, concerning D&O insurance coverage, including the special issues that arise when the company is insolvent.
- We have represented the bankruptcy estate or the defendants in hundreds of preference cases in courts throughout the northeast.
- In addition, the firm regularly appears on behalf of creditors in the Southern and Eastern Districts of New York, since our Stamford, Connecticut office represents a cost-effective alternative to engaging counsel in New York City.