Bankruptcy & Restructuring Litigation

Representing the Official Committee of Unsecured Creditors of Century 21 Department Stores in its bankruptcy proceedings in the Southern District of New York. The Committee investigated potential estate causes of action relating to prepetition transactions involving the company’s family owners and their network of entities. Based on its investigative findings, the Committee was able to negotiate a global settlement that involved the sale of insurance claims and mutual releases for the family and entities in exchange for $59 million for the estate, plus potential proceedings sharing on the insurance claims.

Represented the Official Committee of Unsecured Creditors of Mission Coal Company, LLC, a Tennessee coal mining company. As counsel to the Committee, we led a three-month Rule 2004 investigation and filed a motion seeking standing to prosecute a 52-count complaint, which included claims for avoidance of fraudulent transfers, recharacterization of debt as equity, equitable subordination, and corporate waste. The matter culminated in a contested confirmation trial, which resulted in the parties resolving all outstanding issues for total consideration of approximately $29 million for the estate.

Represented Debtor Aceto Corporation and its affiliated companies, including Rising Pharmaceuticals, Inc. in its Chapter 11 filing and plan of liquidation. Aceto successfully sold its global chemicals business assets and Rising’s pharmaceutical assets in two Section 363 sales for an aggregate value of about $548 million. We continued to represent Aceto in its wind-down, including the Chapter 11 plan of liquidation process, recovery of additional assets (including certain litigation claims), and the review and reconciliation of over $1 billion in filed claims. This representation required a multifaceted effort involving coordination among various practice groups, as well as seamless integration with foreign counsel, as the client operated in more than 15 non-U.S. jurisdictions.

Represented the Official Committee of Unsecured Creditors of Exide Holdings, Inc. in its bankruptcy proceedings in the District of Delaware. The Committee investigated potential causes of action for fraudulent conveyances and preference avoidance held by the Debtors’ estates. In connection with its investigation, the Committee conducted over a dozen witness interviews and reviewed over 10,000 documents. Based on its findings, the Committee was able to negotiate a global settlement that included $2.4 million for unsecured creditors.

Represented the Official Committee of Unsecured Creditors of SportCo Holdings, Inc. and its subsidiaries. The litigation team conducted an extensive investigation into potential claims held by the Debtors’ estates and ensured the establishment of a litigation trust for the benefit of creditors to allow the Committee to pursue claims against the Debtor’s sole shareholder, a private equity firm. The Committee continues to represent the trustee for the litigation trust in prosecuting claims for breach of fiduciary duty, fraudulent transfer, and corporate waste.

Represented the Official Committee of Unsecured Creditors of GNC Holdings, Inc. We conducted an investigation into potential estate causes of action and issued discovery requests in anticipation of a contested sale hearing. The Committee was able to negotiate a consensual Plan of Reorganization, including the sale of the GNC business as a going concern, with the Debtors, secured lenders, unsecured noteholders, and purchaser, resulting in significantly increased recovery for unsecured creditors.

Represented the Official Committee of Unsecured Creditors of Cenveo Inc. The Committee’s investigation culminated in a publically filed report that included significant findings regarding potential claims against Cenveo’s insiders, including for fraudulent conveyance and breach of fiduciary duty claims relating to Key Employee Incentive Plan (KEIP) and Key Employee Retention Plan (KERP) payments and additional forms of compensation made to insiders. As a result, the parties entered into a global settlement that tripled the cash pool for unsecured creditors from $1.5 million to $7 million.

Representing the Public Employees Retirement Association of New Mexico in the chapter 11 case of Pacific Gas and Electronic Company (PG&E) before the Bankruptcy Court for the Northern District of California. As counsel to the Association, which is the court-appointed lead plaintiff in a securities class action against PG&E’s officers and directors, we prevented the litigation from being enjoined and defeated a standing motion seeking to usurp the claims filed by the committee representing the victims of the 2017 and 2018 Northern California wildfires. We also participated in the heavily contested confirmation hearing that spanned approximately two weeks.