Insolvency, Restructuring & Creditors' Rights
The Insolvency, Restructuring & Creditors’ Rights group engages in all phases of insolvency, reorganization, restructuring, creditors’ rights, bankruptcy and commercial law. Our practice group has participated in many of the largest bankruptcy and restructuring cases throughout Texas and the United States. Our clients — debtors, secured and unsecured creditors, ad hoc and official creditor and equity committees, lenders and bank groups, asset purchasers, landlords, equipment lessors, vendors, investors, insurers and trustees — turn to us to develop a strategic course of action tailored to their unique circumstances. Our attorneys are intimately familiar with virtually every facet of bankruptcy, reorganization and the workout process including the representation of purchasers of entire businesses or business segments of troubled enterprises both in and outside of Chapter 11. Our experience includes Chapter 11 reorganizations, liquidations, out-of-court workouts, financial restructurings, pre-packaged and pre-negotiated plans, receiverships and cross-border insolvencies. In addition, we have significant experience in litigation arising out of or related to the bankruptcy process including complex state and federal court actions, and matters involving fraud and commercial crimes.
- Representation of Dennis L. Roossien, Jr., as Receiver, who was appointed in a proceeding commenced by the Securities and Exchange Commission (SEC) in the United States District Court for the Northern District of Texas, which now has 63 separate defendants, in connection with alleged oil and gas Ponzi schemes involving in excess of $500 million raised from over 8,000 investors. As a result of the receivership appointment, Mr. Roossien was appointed the Chapter 11 trustee for 27 of the corporate defendants in the SEC proceeding, which entities filed for Chapter 11 bankruptcy relief in the United States Bankruptcy Court for the Northern District of Texas.
- Representation of mezzanine lenders through the borrower's Chapter 11 bankruptcy and in several adversary proceedings, acquisition of the project under Section 363 of the Bankruptcy Code, restructuring of the existing senior loan documents with International Bank of Commerce, negotiation of all project documents with a Texas based resort, preparation of airport access agreements, modification of pre-existing design agreements, preparation of construction contracts with numerous general contractors and licensing of with The Texas Real Estate Commission.
- Representation of one of the largest global bank groups in the world, as administrative agent, in the restructuring of $125 million secured revolving credit facilities, which included substantial negotiations with the borrower and borrower's subordinated lenders, during the Chapter 11 bankruptcy cases commenced by the borrower and a subsidiary/guarantor of the borrower.
- Representation of Alan M. Jacobs, Plan Administrator for Texas Rangers Baseball Partners, in claims administration and litigation that resulted in $268 million plus litigation recoveries under the Texas Rangers plan of reorganization.
- Representation of Texas Instruments Incorporated in its successful purchase of specialized tooling for the production of 300 million computer chips that were being sold by Qimonda Richmond, LLC, a company based in Richmond, Virginia, that filed for Chapter 11 bankruptcy in Delaware.
- Representation of Alex Rodriguez, who is the largest unsecured creditor, as a result of unpaid deferred compensation resulting from his 2001 record breaking $252 million contract with the Texas Rangers. It was uncertain whether a Committee would be formed because the Debtors filed a plan of reorganization at the outset of the case that proposed to pay all unsecured creditors in full through the sale of the Texas Rangers to a group led by Hall of Famer Nolan Ryan and sports attorney Chuck Greenburg. However, the secured lenders, whose rights to recovery from the Texas Rangers are contractually limited to $75 million, objected to the sale and demanded an auction in order to enhance their recovery. The court ordered action resulted in an additional $100 million recovery for the estate and the plan of reorganization was confirmed the day after the auction and two months after filing.