Restructuring and Bankruptcy

"I'd give them five out of five. They're the leading experts in this field."– Chambers & Partners interviewee

BakerHostetler as Counsel for Trustees, Receivers and Fiduciaries

• Court-appointed counsel to the Securities Investor Protection Act (SIPA) Trustee Irving H. Picard for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS). The SIPA liquidation requires thorough investigation of global banking practices, the feeder fund industry and financial instruments, among countless other issues surrounding this unprecedented financial fraud. More than 1000 lawsuits seeking the return of fictitious profits and fraudulent transfers have been filed on behalf of the SIPA Trustee, as part of the ongoing liquidation efforts to marshal assets for ultimate distribution to BLMIS customers with allowed claims. Venues include the U.S. Bankruptcy Court and the District Court for the Southern District of New York, the Second Circuit Court of Appeals, and the U.S. Supreme Court, as well as state and several foreign court systems. In the tenth year of the Madoff Recovery Initiative, as of Jan. 7, 2019, the total recoveries stand at more than $13.3 billion, and over $11.9 billion has been distributed to eligible BLMIS customers, inclusive of SIPC advances.
• Counsel to the Trustee in the Fair Finance Company Chapter 7 case pending in U.S. Bankruptcy Court for the Northern District of Ohio. This ongoing matter involves efforts to unravel a $200+ million Ponzi scheme and collect funds for distribution to defrauded investors. The case, which entails a national investigation and multimillion-dollar claims against individuals and entities in multiple states, presents novel legal issues due to the unusual circumstances and business practices involved, the complex insider transactions, and parallel state and federal criminal investigations.
• Counsel to the Court-appointed Receiver for Michael Kenwood Group and affiliates pending in the U.S. District Court for the District of Connecticut. This ongoing international Ponzi scheme case involves the largest financial fraud in Connecticut history with investor losses of more than $500 million. Numerous lawsuits have been commenced to recoup investor losses, one of which resulted in a settlement that yielded $250 million for the Ponzi scheme victims.
• Served as counsel for the FDIC as Receiver in four recent bank failures, including complex litigation over unique issues relating to capital commitments made by bank holding companies to their regulators, as well as disputed ownership of hundreds of millions of dollars of tax refunds and fraud and preference claims.
• Represented Jeffrey I. Golden, the Chapter 7 Trustee for the liquidation proceedings of Aletheia Research and Management, Inc., a one-time industry leading asset manager with over $8 billion in assets under management.
• Represented assignees for the Benefit of Creditors in the states of Florida and California, including assignments for developers In re Wetherington Development, LLC, In re Manasota, LLC, and In re RDR Communities, LLC.
• Served as counsel to the Patient Care Ombudsman in the Chapter 11 cases of Daytop Village and affiliates, which was pending in the U.S. Bankruptcy Court for the Southern District of New York. The Patient Care Ombudsman was responsible for monitoring patient care at Daytop’s 14 facilities throughout New York City and other parts of New York State, and regularly reporting to the Bankruptcy Court.

BakerHostetler as Counsel for Debtors

• Served as lead debtors’ counsel in the separate Chapter 11 bankruptcy cases of two timeshare developers, Island One Resorts, Inc. and Tempus Resorts International LTD, in which the firm led the successful confirmation of reorganization plans for each of the companies, restructuring over $200 million in debt in each case.
• Served as lead debtors’ counsel in numerous hospitality-industry cases, including F.F. Station, LLC d/b/a Church Street Station, a five-acre entertainment complex in downtown Orlando, and numerous other hotels, golf courses, and condo hotels.
• Served as debtor’s counsel to the Plaza, LLC, a multi-building office condominium project in downtown Orlando, in which the firm led a successful reorganization.
• Served as lead debtor’s counsel for Legacy Healthcare, Inc., successfully reorganizing three nursing homes in upstate New York, and currently representing the buyer of several nursing homes from bankruptcy estates.
• Represented Sarkis Investments Company LLC, a commercial shopping center debtor, in Chapter 11 reorganization efforts worth more than $20 million.
• Served as counsel to a debtor of a multimillion dollar internet company, Specialties West, Inc., a Chapter 11 case which was preceded by a state court receivership, involving a dual-track sale process and reorganization.
• Served as counsel to aerospace supplier Swift-Cor Aerospace, Inc. when it was days away from missing payroll and being forced to shut down operations. Swift-Cor engaged BakerHostetler as counsel for its successful restructuring and sale to Impressa Aerospace.
• Represented Veritrans Specialty Vehicles, a bus and ambulance manufacturer, in its successful sale as part of its Chapter 11 proceeding. The company was sold as a going-concern 21 days after the filing of the case.
• Represented Creative Engineered Polymer Products, an engineered plastic and rubber automotive parts supplier, in the successful sale of its assets as a going-concern through the Chapter 11 process.
• Represented Excello Automotive, a Tier 2 automotive parts supplier, in the sale of its assets through the Chapter 11 process.
• Represented a waste hauling company and a wall coverings manufacturer in the successful sales of their respective assets going-concerns through separate receivership proceedings.
• Represented a diagnostic imaging company in its successful plan confirmation and sale through the Chapter 11 process.
• Represented a distressed pharmaceutical distribution company in its successful out-of-court sale.

BakerHostetler as Counsel for Creditors, Purchasers of Assets and Other Interested Parties

• Served as lead counsel for the largest unsecured trade creditor in the Eastman Kodak bankruptcy case filed in the Southern District of New York. BakerHostetler negotiated the resolution of a six-year dispute between the creditor and Kodak.
• Served as counsel to an international baking company in the MF Global Inc. SIPA liquidation pending in U.S. Bankruptcy Court for the Southern District of New York in connection with the clients’ customer commodities accounts.
• Represented a telecommunications company that served on the Official Committee of Unsecured Creditors in the Chapter 11 case of Fairport Communications, Inc. and related entities, which successfully confirmed its plan of reorganization.
• Represented a national factoring company in the telecommunication case of In Re Cordia Communications Corporation, et. al.
• Represented Marubeni Specialty Chemicals, Inc. in assignment estate litigation.
• Represented a former investment bank in connection with multiple retention and banking claims matters.
• Represented bondholders in several large Chapter 11 cases.
• Represented the Official Committee of Administrative Claimants in matters relating to the LTV Steel Company, Inc. Chapter 11 bankruptcy. At the outset, the client’s constituents expected to receive an approximately 20 percent pay out on more than $165 million in claims, but we were able to secure settlement of a significant lawsuit against former directors and officers of LTV Steel for $85 million.
• Represented a German entity in the purchase of Cardinal Fasteners, Inc., a specialty fastener company, through a bankruptcy sale.
• Represented a large engineered products manufacturing company in the purchase of the secured debt of an insolvent aluminum casting company and the subsequent purchase of the aluminum casting company through a managed receivership proceeding.
• Represented a large, international commercial vehicle manufacturer in multiple workouts with its distressed suppliers.
• Represented a secured creditor in successful out-of-court restructuring of manufacturer of alternative energy products.
• Represented multiple large financial institutions in connection with their derivative exposure arising out of a number of large Chapter 11 cases, including Lehman Brothers, AbitibiBowater and General Motors.
• Represented a large investment bank in connection with litigation regarding its success fee in a chapter 11 case.

"The team's strengths are its national coverage, significant legal resources, creative litigation strategies and being commercially minded in negotiations."  – Chambers USA 2021

• Chambers USA: Bankruptcy/Restructuring

  • Highly Regarded, Nationwide

    • Band 1 (2021)

  • Florida (2013 to 2021)

    • Band 2 (2015 to 2021)

  • Ohio (2007 to 2021)

    • Band 1 (2015 to 2021)

  • California

    • Band 4 (2021)

• The Legal 500 United States

  • Restructuring (Including Bankruptcy): Corporate

    • Tier 6 (2020 to 2021)

• Global M&A Network: Small Mid Market Turnaround of the Year Award (2016)

• The M&A Advisor: Consumer Staples Deal of the Year Award (2018)

• U.S. News - Best Lawyers "Best Law Firms"

  • Bankruptcy and Creditor Debtor Rights/Insolvency and Reorganization Law (2016 to 2021)

• Recognized as one of the top law firms for client service, BakerHostetler was named to the 2020 BTI Client Service 30 for the sixth consecutive year