Consolidated Freightways Corporation
Consolidated Freightways Corporation
This was one of the largest and most complex Chapter 11 cases filed by a freight company in the United States. We represented the company in liquidating the company's assets and resolving thousands of claims. Although our offices are located in Portland, Oregon, we were able to provide these services to a debtor whose bankruptcy case was being administered in the Central District of California.
Cottage Grove Community Hospital
Cottage Grove Community Hospital
We represented an ad hoc committee of community leaders in this Chapter 11 case whose goal was to ensure that the citizens of Cottage Grove, Oregon did not lose local access to emergency and accute medical care. Our involvement in the case ensured that the community's concerns were met, ultimately resulting in Peace Health, a major health care provider organization, agreeing to erect a new community medical center to address the citizens needs.
Creditors' Plan
Creditors' Plan
Sussman Shank successfully represented a governmental entity as a creditor in a Chapter 11 bankruptcy case that allowed our client to prepare a plan through which it purchased a failed construction project out of bankruptcy. We were able to arrange for the purchase of the project free and clear of liens, which eliminated a large number of construction liens against the project. As a result, the project was sold and work was restarted on the project.
Debtor/Creditor Litigation
Debtor/Creditor Litigation
We were hired to collect $1.3 million owed by the purchaser of a large machine. We examined the paperwork and discovered, to our client's surprise, that our client had recourse against the manufacturer. We made demand on the manufacturer and recovered the whole $1.3 million for our client. The manufacturer retained us shortly thereafter.
Dismissal of Abusive Filings
Dismissal of Abusive Filings
We obtained three dismissals with prejudice of Chapter 13 cases on grounds of abuse of the bankruptcy laws after contested hearings. These cases involved repeat filers who had no intention of reorganizing. In one matter, the court barred the debtor from filing any type of bankruptcy for two years. This permitted the creditor (a county tax collector) to commence and continue with long-frustrated foreclosure proceedings.
Increased Interest Rate
Increased Interest Rate
In a precedent-setting decision in the Bankruptcy Court for the District of Oregon, we established the market rate of interest for unpaid ad valorem real property taxes at 15%, only one percentage point lower than the Oregon statutory rate. Counties had typically recovered less than 10%. We introduced expert testimony to establish the market rate for a Chapter 13 debtor. This precedent has endured for the last two years.
Mediation
Mediation
We initiated a mediation process in the Bankruptcy Court for the District of Oregon which resolved issues in three related bankruptcies and several adversary proceedings pending in three different Bankruptcy Courts in the Western District of Washington. This resulted in a settlement which requires payment in full of a debt owed to the client of over $2 million.
North Pacific Group of Companies
North Pacific Group of Companies
We served as lead counsel to the federal court receiver appointed to liquidate the assets of the North Pacific debtor companies. Our attorneys Barry Caplan and Jeff Misley led a team that promptly sold the company's major assets, paid its secured creditors in full within weeks of the receiver's appointment, and implemented a further liquidation strategy for the remaining assets and for distributions to creditors.
Objection to Plan
Objection to Plan
We obtained an Order for Relief after filing an involuntary bankruptcy petition on behalf of a creditor against a Willamette Valley real estate developer. The case proceeded as a Chapter 11 in the Eugene Division of the Oregon Bankruptcy Court. We objected to confirmation of Debtor's Chapter 11 Plan. After a contested hearing, we obtained an Order denying confirmation and converting the case to a Chapter 7 proceeding. This was accomplished expeditiously, within approximately one year of the petition date.
Preference Litigation
Preference Litigation
We represent a client who is often sued for preferential transfers. As a result of our 10+ years of representation of this client, the client accepted an offer to settle "all preference claims" for about $2,000. Subsequently, the debtor made demand for additional sums from the client (approximately $1 million based on additional preferential transfers later discovered by the debtor). We successfully defended the trustee's larger claim and the debtor ultimately dismissed its claim with no additional payment from the client.
Purchasing Assets Through Bankruptcy
Purchasing Assets Through Bankruptcy
Sussman Shank assisted a well-known Oregon company who desired to purchase assets and Portland-area locations of a well-known Chapter 11 debtor. There were competing bidders from two other states. The combined bids of our client and one other party were greater than the single bid from two out-of-state bidders, each of whom wanted all of the locations of the debtor. We prepared pleadings to obtain appropriate bidding procedures to enable our client to "partner" with another interested party from Oregon. Thereafter, our client was successful in obtaining the highest bid at an auction for the assets the client wanted. We then prepared or approved all of the necessary documentation to finalize the sale of those assets. The success of our efforts enabled the acquisition of the operations synergistic to our client's existing business.
Recovery of Secured Lender's Claim
Recovery of Secured Lender's Claim
We represented a lender whose $650,000 loan balance was collateralized by health equipment lease receivables. The lease portfolio was not performing well and the borrower was not paying the bank according to loan terms. Initially, we helped prepare and negotiate a Forbearance Agreement. We also defended a lawsuit against the bank by the borrower and successfully obtained dismissal. We later filed a lawsuit on behalf of the lender upon default under the Forbearance Agreement. We obtained immediate "possession" of the leasehold receivable collateral at a provisional process hearing and obtained an order appointing a receiver to collect the leasehold receivables. The bank recovered the full amount of the debt and most of its attorney fees and costs.
Refusal of Preference Claim
Refusal of Preference Claim
Sussman Shank represented a publicly-held company in a bankruptcy pending in the Southern District of New York. Knowing our client had preference exposure of $5 million, we negotiated assumption of a contract between our client and the debtor. As a result, most of the pre-petition default was paid, the debtor paid our client for services provided post-petition and the client received an administrative expense claim (essentially elevating its claim from a pre-petition unsecured claim). In addition, we defeated the subsequent preference claim based on case law prohibiting the debtor from pursuing a preference claim from a creditor whose contract has been assumed.
Removal of Adversary Proceedings to "Home Turf"
Removal of Adversary Proceedings to "Home Turf"
In a large international Chapter 11 bankruptcy pending in the District of Delaware and Canada, Sussman Shank successfully obtained an order transferring venue to the Bankruptcy Court in Oregon of an adversary proceeding filed in Delaware by the debtor against Oregon residents. This was a contested matter involving interpretation and enforcement of contract documents between the debtor and the Oregon residents which contained forum selection provisions. Filing the action in Delaware was contrary to the contract documents signed by the debtor and the only connection with Delaware was that the debtor filed bankruptcy there. Had venue not been transferred to Oregon, the cost of defending the action would have been prohibitive for the clients and could have resulted in causing one of the clients to file bankruptcy.
Representation of Governmental Entities for Bankruptcy
Representation of Governmental Entities for Bankruptcy
Sussman Shank successfully obtained payment of ad valorem tax claims in large Chapter 11 bankruptcy proceedings in multiple jurisdictions, including New York, Florida, Delaware, Colorado, California, Washington and Oregon.
Society of Jesus, Oregon Province
Society of Jesus, Oregon Province
This was the first Chapter 11 bankruptcy case filed by one of the provinces of a Roman Catholic religious order in the United States. Relying on our experience from the Archdiocese of Portland case, and facing new issues relevant only to a religious order, we were able to implement a strategy for resolving and paying over 500 clergy sex abuse claims through the use of insurance coverage and other assets. This resulted in a plan that was overwhelmingly accepted by all creditors which included $119 million in contributions from the debtor's insurers and allowed the province to continue its mission throughout Alaska, Idaho, Montana, Oregon, and Washington.
Successful Purchase of Chapter 11 Computer Consulting Company Assets
Successful Purchase of Chapter 11 Computer Consulting Company Assets
Sussman Shank LLP represented an out-of-state national company in its successful purchase, free and clear of liens, of assets from an Oregon based computer consulting company that had filed Chapter 11. We participated in negotiating the terms of the sale, which included overbid protections and provisions for expense reimbursement, and participated with the Debtors attorney in the contentious evidentiary hearing on objections to the sale and possible competing bids.
Successful Purchase of Retail Stores' Assets in Boston Chapter 11 Case
Successful Purchase of Retail Stores' Assets in Boston Chapter 11 Case
Sussman Shank LLP represented an Oregon-based retailer who successfully purchased, free and clear of liens, 11 retail stores located in California from a Chapter 11 Debtor who had filed in Boston, Mass. We negotiated the terms of the sale, drafted the purchase agreement, assisted in negotiating new lease terms, addressed issues of successor liability, participated in the preparation of pleadings necessary to obtain court approval of the sale, and participated at the hearing in Boston that resulted in court approval of the sale.
Sunwest Companies
Sunwest Companies
We represented a group of financial institution lenders in one of the largest and most complex Chapter 11 bankruptcy case ever filed in the state of Oregon involving assisted living and nursing homes located throughout the United States. In that case we successfully asserted and protected our lender clients' rights and remedies regarding their collateral in the negotiation of a $1.2 billion sale of the companies' assets.
Talbitzer Homes/Hawks Prairie Chapter 11 cases
Talbitzer Homes/Hawks Prairie Chapter 11 cases
A major homebuilder in southern Washington engaged us to file a Chapter 11 petition when negotiations with one of his major secured creditors broke down and he was faced with imminent foreclosure of valuable assets. A team from our Bankruptcy & Creditors' Rights and Litigation Practice Groups implemented a strategy that involved significant litigation concerning approximately $15 million in secured claims held by our client, negotiated settlements with the secured creditors in both bankruptcy cases, and restructured approximately $50 million of debt under two separate plans of reorganization. This resulted in confirmation of a plan for our client that is expected to pay all of its creditors in full, provides the client with financing to complete the construction of homes in all of its subdivisions, and allows it to retain most of its other income producing assets.
The Columbian Publishing Company
The Columbian Publishing Company
The major secured creditor of the The Columbian daily newspaper in Vancouver, Washington called upon us to represent it in a Chapter 11 bankruptcy case filed in the Western District of Washington. We successfully negotiated the bank's treatment under a plan of reorganization that resulted in The Columbian surrendering its recently built state-of-the-art headquarters building to the bank in exchange for relief from a substantial portion of its unsecured debt. This resulted in improved cash flow to the debtor, allowed the bank to liquidate a non-performing asset, and assured the bank of consistent future payments on its remaining secured debt.
Wind-Down of Business Operations
Wind-Down of Business Operations
We represented a long-time Portland retailer at several locations in a year-long program involving reduction of operations and ultimately a going-out-of-business sale. The business, although successful for many years, had lost money in recent years and was unable to continue. We advised the client on steps to take which enabled all priority and secured debt to be satisfied. All unsecured creditors were kept informed of the company's owner's desire to maximize recovery at a minimal cost. While the unsecured creditors did not recover their old debt, we were successful in enabling the company to satisfy the secured debt (and, in turn, minimize the individual owner's guaranty exposure to the lender).
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