Overview of the New Small Business Reorganization Act
May 11, 2020
rufus t. dorsey
Partner
Atlanta
"extremely capable"
Chambers USA 2018
Overview
Rufus Dorsey is senior partner and practice leader for the firm's bankruptcy practice. With more than 35 years of service in the area, his broad knowledge of the restructuring landscape and his reputation for diligence have won Rufus the trust of his clients and the respect of his peers.
Rufus represents a diverse range of clients in bankruptcy, including secured and unsecured creditors, Chapter 11 debtors, committees and trustees, asset purchasers, pension plans, and fiduciaries. In the secured lending area, Rufus guides the firm's clients through work outs, inter-creditor issues, debtor-in-possession financing, asset sales and restructuring of borrowers through bankruptcy. Rufus has significant experience as an examiner and as counsel for Chapter 11 debtors, unsecured creditor committees and trustees in high profile bankruptcy cases. His practice also extends to state and federal receiverships where he represents both lenders and receivers. Rufus’ clients come from a wide range of industries, including manufacturing, retail, energy, insurance, technology, finance and healthcare, and involve work in jurisdictions nationwide, including Delaware and New York.
Rufus is devoted to helping his clients achieve their commercial goals. His restructuring focus and ability to find solutions often leads his clients to win-win results. Business-centered and pragmatic, Rufus is always at his client’s side, providing a steady hand to navigate through the restructuring process.
Experience
- Represented The Colonial BancGroup, Inc., a publicly traded bank holding company, in response to the largest bank fraud in U.S. banking history. Our team guided the holding company through the Chapter 11 bankruptcy process, filed in Montgomery, Alabama, which was a hotly contested by the FDIC and involved unique disputes relating to the interrelationship between bank holding companies and subsidiary banks. The representation involved litigation of issues of first impression with the FDIC, as receiver for the bank subsidiary bank, the Chapter 11 plan process leading to a successful confirmation, and post-confirmation pursuit of asset recovery, including the pursuit of claims against auditors.
- Represented an energy company in a multi-billion dollar dispute with Westinghouse and its parent company, Toshiba, over Westinghouse's failure to complete construction of Vogtle nuclear power plants, which resorted to Chapter 11 bankruptcy. We assisted our client in the recovery of $1.3 billion while preserving company's interest in intellectual property critical to the continued construction of the nuclear plants.
- Represented an owner/operator of a multi-facility senior living community in a dispute with a former insider over efforts to receive aggregate payments in excess of $30 million under a burdensome and unfair construction contract extracted by the insider during his term of services. This representation ultimately lead to a significant reduction of the asserted obligations without the necessity of a bankruptcy filing.
- Representing a court-appointed monitor in the Securities Exchange Commission's civil claims pending in New Jersey US District Court against defendants accused of amassing nearly $190 million in municipal bond and private placement offerings in their ownership and operation of various types of senior care facilities. Our representation involves monitor's oversight, defendants' plan for disposition of assets and repayment of obligations, and execution thereof.
- Represented Bank of America, N.A., as agent and lender, under a $130 million senior revolving credit facility provided to Noranda Aluminum, Inc. and affiliates, which comprise a vertically integrated producer, manufacturer, and distributor of alumina, aluminum, and rolled aluminum products, in connection with Noranda's Chapter 11 filing in St. Louis, Missouri. Representation involved $130 million debtor-in-possession financing facility to support the debtors' operations in chapter 11 and ultimate sale of aspects of enterprise as a going concern in satisfaction of obligations.
- Represented Bank of America, N.A., as agent and lender, under senior secured revolver to American Tire Distributors, Inc., ATD Corporation, and their affiliates in Chapter 11 bankruptcy filings in Delaware. We represented the Agent in negotiating and closing a $1.2 Billion debtor-in-possession financing facility to the debtors and their Canadian affiliates, to support the debtors' operations in Chapter 11 and to allow the successful reorganization involving conversion of more than $1 Billion of subordinated debt to equity and infusion of more than $200 million of new working capital to the companies.
- Rufus Dorsey was appointed as examiner in Chapter 11 case filed by NewPower Holdings, a retail energy provider created by Enron Corp., and Parker Hudson served as examiner counsel. Our services included the investigation, pursuit, and resolution of claims based on insider transactions by and against Enron and certain senior management, resulting in a multi-million dollar increase in the yield to New Power's creditors.
- Represented former senior member of management in the bankruptcy case of The Sea Island Co. in the recovery on multi-million dollar retirement package for extended service to Sea Island and defense of fiduciary claims based on post-retirement events.
- Represented Chapter 11 trustee in bankruptcy of fundamentalist religious organization accused of raising and absconding with over $100,000,000 as a part of a church "gifting program" alleged to be a fraudulent scheme and securities scam. Representation involved unravel the organization's records, pursuing assets both within and outside the United States, confirming a liquidating plan and unearthing evidence that led to over 12 individuals being indicted and convicted during the course of the bankruptcy.
- Represented Chapter 11 trustee in bankruptcy of an affiliate of Greater Ministries International, Inc., a religious. Representation involved the operation and sale of a hotel and convention complex in Kentucky, the confirmation of a liquidating plan, and the successful pursuit of claims to recover property relating to a separate convention center and related commercial buildings in Indiana.
- Represented Committee of Noteholders who were owed $135 million by Keller Financial which was engaged in the business of subprime lending. Representation involved investigation that uncovered fraud, conflict of interest, misuse of funds and mismanagement, leading to a contested appointment of a Chapter 11 trustee. After the appointment , the Committee and trustee jointly pursued the liquidation of the loan portfolio, the recovery of funds from insiders and former professionals, the confirmation of a liquidating plan, and pursuit of auditor malpractice claim.
- Represented Chapter 11 debtors engaged in various aspects of the automobile insurance premium finance business and securitizations and investment instruments in excess of $60 million. Representation involved confirmation of liquidating plan, the orderly wind-down of the debtors, and the investigation of multi-million dollar claims against former professionals pursued for the benefit of creditors.
- Represented the Official Third Liquidator in appointed by the Grand Court of the Cayman Islands in connection with the liquidation of National Warranty Insurance Risk Retention Group. Representation involved investigation of claims against auditor, resulting in a confidential settlement of claims within less than a year of the appointment among multiple parties and approved by the Cayman Court.
- Represented a parent corporation on owner of group of insurance companies in Texas, Florida and Hawaii in Chapter 11 bankruptcy file in the Northern District of Alabama. Representation involved the resolution of ongoing disputes among the debtors and the insurance receiverships, the reduction of operations in an orderly fashion, the liquidation of non-core assets, the preservation of records and claims, and the formulation of confirmation of a liquidating Chapter 11 in less than six months.
- Represented HSBC, as lender, under the senior secured facility in a Chapter 11 filing in the Western District of New York by a publicly-owned company engaged in the business of manufacturing and selling ready to assemble furniture. Representation involved fending off effort among hedge funds and borrower to force HSBC to convert loan to equity and defense resulted in HSBC's claim being purchased by related parties at a favorable return.
- Represented GECC, as senior secured lender, in Chapter 11 filing in Northern District of Georgia by borrower engaged in the manufacture, sale and distribution of Astroturf and related products. Representation involved the negotiation of a series of cash collateral orders, the structuring and implementation of an auction process pursuant to Section 363, and efforts to resolve competing claims and liens relating to the sale of assets and application of funds.
Thought Leadership
- Participated in a Bankruptcy & Restructuring roundtable "Bankruptcy in the Americas," published by Financier Worldwide, September 2014. Click here to read more.
Areas of focus
- Financial Services
- Restructuring & Bankruptcy
Education
- University of Georgia School of Law (J.D., cum laude, 1980) Notes Editor, Georgia Law Review, 1979-1980
- University of Georgia (B.A., magna cum laude, 1977)
Accolades
- Listed in Chambers USA: America's Leading Lawyers for Business for Bankruptcy/Restructuring
- Recognized by The Best Lawyers in America© for Bankruptcy and Creditor-Debtor Rights/Insolvency and Reorganization Law (2006-present)
- Recognized as a Georgia "Super Lawyer" by Super Lawyers magazine (2005-2019)
- Recognized as one of Georgia's "Top Rated Lawyers" by Martindale-Hubbell and ALM (2012)
- Named as one of Georgia's leading lawyers in Georgia Trend magazine (2007, 2009)
Professional Affiliations
- Past president of the Bankruptcy Section of the State Bar of Georgia
Admitted to practice
- Georgia