Dec 08, 2020
Parker Hudson provides rapid and sage advice in the face of complex or time-sensitive insolvency issues. We offer full-service counseling and litigation, not only for lenders and other creditors but also for distressed businesses, trustees, receivers, examiners, and court appointed monitors.
Parker Hudson’s bankruptcy, restructuring, and creditor rights work takes a best-of-both-worlds approach.
We are smaller than many of the firms practicing in this arena — giving you the benefit of a concentrated team working together to advance your interests — but we also have extensive experience and knowledge across the whole spectrum of bankruptcy and related law. We believe our bench depth is as proven and substantial as that of the larger firms operating in this same space.
We also balance our legal insights with business acumen, always tempering the abstract (what we can do under the law) with the practical (what you should do for your business’ best interests and bottom line). We are aware that our clients are not looking for someone to “over-lawyer” their restructuring or insolvency issues.
To that end, we offer a blend of high-quality legal services and cost-efficient value. This careful balance has allowed us to build a robust and sophisticated clientele.
Our approach includes:
- Hands-on working knowledge of the many legal and practical issues involved in secured lending (the life blood of most companies, regardless of their industry or operational status)
- Close working relationship with Parker Hudson’s many other practice groups, including our commercial finance team, creating an all-important “whole firm” experience for our clients while still maintaining cost-efficient billing
- A blend of litigation and documentation backgrounds, enabling each attorney to function effectively in a broad range of situations without the need for excessive staffing or costly compartmentalization of work.
- Lean but effective staffing, combined with a rate structure that is below that of many other Tier-One law firms (which are typically larger and accustomed to heavier staffing)
The attorneys in this practice group include two fellows in the American College of Bankruptcy, one of them also a Fellow in the American College of Commercial Finance Lawyers. Additionally, many of the members of this team enjoy high ratings in Chambers USA, among other career achievements and accolades.
- Problem loan workouts
- Lender liability
- Assignments for the benefit of creditors
- Restructuring services
- Chapter 11 debtor representation
- DIP financing
- Cash Collateral
- Adequate protection
- Distressed mergers and acquisitions
- Chapter 11 plan process
- Committee representation
- Fraud investigations
- Fiduciary duty liability
- Auditor malpractice
- Avoidance and subordination actions
- Examiner role
- Agency enforcement actions
- Bankruptcy mediation
- Represented Bank of America, N.A., as agent and lender, under senior secured revolver to Modular Space Holdings, Inc. and affiliates, which are engaged in the sale and leasing of temporary buildings and structures, in a pre-arranged Chapter 11 bankruptcy filing in Delaware. Representation involved debtor-in-possession financing facility to support the debtors' operations in Chapter 11, and $720,000,000 cross-border exit financing facility to allow the successful reorganization.
- 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 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.
- Represented asset-based healthcare lender in connection with chapter 11 bankruptcy cases filed by 13 skilled nursing facilities in the Eastern District of Tennessee. Our representation included negotiating and documenting cash collateral agreements, liquidating the assets of certain facilities that were shut down by regulators, and supporting confirmed chapter 11 plans for several surviving facilities with exit financing.
- Represented Bank of America, N.A., as agent for senior secured bank group, in the chapter 11 bankruptcy case of Summit Financial Corporation, a finance company focusing on the subprime auto lending industry, pending in the Southern District of Florida. Representation involves defaults under a $110 million syndicated asset-based revolving credit facility, cash collateral disputes and the potential sale of the company's assets under section 363 of the Bankruptcy Code.
- Represented asset-based healthcare lender in the chapter 11 bankruptcy case of a community hospital filed in the Northern District of Georgia. Representation included negotiating use of cash collateral by the hospital, subordinated debtor-in-possession financing provided by a potential buyer, and a section 363 sale process that resulted in sale of the hospital as a going concern and payment of all secured claims in full.
- Represented Bank of America, N.A., as agent, in connection with chapter 11 bankruptcy cases of Beaulieu Group, LLC, and its affiliates in the carpet manufacturing business. Representation involved the documentation and court approval of a $70 million debtor-in-possession asset based lending facility to support a marketing and sale process under section 363 of the Bankruptcy Code, resulting in the sale of the company as a going concern and payment of all secured claims in full.
- The firm represented Bank of America, N.A., as administrative agent, lender, and letter of credit issuing bank under an asset-based lending facility provided to The Standard Register Company and its affiliates which provide printing, distribution, and marketing materials and services to medical service providers, governmental agencies, and other businesses. The companies filed chapter 11 bankruptcy cases in Delaware in 2015, and the firm assisted Bank of America in negotiating, documenting, and obtaining court approval of a $125 million debtor-in-possession financing facility to support the debtors' operations in chapter 11, including negotiating a post-petition intercreditor agreement between the asset-based lenders, the first lien term lenders and the second lien term lenders.
- Represented Chapter 7 Trustee for Silverton Financial Services, Inc., the holding company for Silverton Bank, the largest bank failure in Georgia, involving unique disputes with the FDIC, insurance companies, and brokerage subsidiaries and the orderly liquidation of a range of assets, including two jet aircrafts.
- Represented an agent and letter of credit issuing bank under an asset-based lending facility provided to companies involved in the manufacture and distribution of chemicals and related products worldwide. We assisted the client in asserting pre-petition secured claims in excess of $80 million in company bankruptcy, including the negotiation and documentation of debtor-in-possession financing provided by a group of bondholders, and a section 363 sale of substantially all of the assets of the companies, resulting in full payment of the bank group's claims.
- 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 Regions Bank, as agent and lender, under a senior secured credit facility to Forbes Energy Services Ltd., a provider of oil field services and related production, through the Forbes' pre-planned chapter 11 bankruptcy cases filed in Houston, Texas. Representation involved negotiation of a restructuring support agreement providing for the conversion of $280,000,000 of bond debt to equity, and significant plan issues resulting in payment in full of obligations with post-confirmation letter of credit agreement.
- 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 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 significant claims against the auditors PWC and Crowe Horwath for breach of professional duties of care.
- Represented a bank lender in work-out and restructuring of multiple credit facilities with manufacturer, including in connection with Export-Import guaranteed or insured financing products, allowing client to move towards exit from troubled credit.
- Represented a national restaurant franchisor in pursuing and obtaining injunctive relief in federal bankruptcy court against a former franchisee for misuse of our client's trademarks. The firm successfully asserted claims arising under the Lanham Act (trademark infringement and false origin claims) as well as claims for unfair competition and breach of contract. The court granted our client's motion for temporary restraining order and preliminary injunction and ordered the defendants immediately to stop using our client's trademarks and cease operation of the restaurants at issue.
- 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.
- Eric Anderson and Michael Sullivan, "Killing Two Birds with One Stone: BAP Denies Novel Attempt for § 364(d) Exit Financing in SARE Case, Rules Stay Relief Should Have Been Granted," American Bankruptcy Institute Journal, Vol. 39, No. 11, pgs 12, 50-51 (November 2020)