Cole Schotz represented the Official Committee of Unsecured Creditors in the Chapter 11 bankruptcy cases of D.C. Development, LLC, et al. in the District of Maryland, and in Peak Resorts, Inc. et al. in the Northern District of New York.
D.C. Development, LLC and its affiliates owned and operated the Wisp Ski Resort in Garrett County, MD. Founded in 1955, Wisp is the leading resort area in Western Maryland with a 32-trail ski slope, mountain roller coaster, 2 championship golf courses, Hotel, rental homes, retail, marina, and 2,200 acres of master planned land for residential and vacation homes. The cases involved $50 million to $100 million in assets including Maryland’s only ski resort, and approximately $50 million in liabilities. The Debtors were the 6th largest employer in Garrett County, MD. Cole Schotz effectively represented the Committee to protect the rights of the unsecured creditors while preserving the Debtors' assets and value as a going concern. Cole Schotz's efforts contributed to the successful marketing and sale of the Debtors' assets under § 363 of the Bankruptcy Code, which generated $23.5 million for the ski resort assets, and $6.1 million for the Lodestone Golf Course assets, allowing funds to be set aside for distribution to the unsecured creditors, and the ski resort to continue operating as a going concern. Gary H. Leibowitz, a member of the Bankruptcy & Restructuring, and Litigation departments, was the lead attorney for the Committee.
Similarly, Peak Resorts, Inc. owned and operated the Greek Peak Mountain Resort, a four season resort development located in Virgil, New York. The resort is the largest day trip area in Central New York State, and currently has 31 slopes and trails with a base elevation of 1,250 feet, and vertical drop of approximately 900 feet. In addition to skiing and snowboarding, there is a tubing center, terrain park, and a children’s learning center. There is also a Mountain Adventure Center with a corporate team building facility. The Debtors owned approximately 889 acres of real estate, which included the ski area base, buildings, and conference center, and the Hope Lake Lodge & Cascades Indoor Water Park. The cases involved approximately $20 million in assets and over $50 in liabilities. Cole Schotz's efforts representing the Committee assisted in the funding of debtor-in-possession financing to stabilize the businesses and preserve the assets, and the sale of the Debtors' assets which generated in excess of $5 million for the benefit of the creditors and estates and allowed the ski resort to continue operating as a going concern. Gary H. Leibowitz, a member of the Bankruptcy & Restructuring, and Litigation departments, was the lead attorney for the Committee.
Changes in the healthcare system have placed enormous financial pressures on hospitals and other healthcare providers in the region, resulting in an unprecedented number of healthcare providers seeking insolvency and restructuring guidance, and in certain instances, resorting to protection under Chapter 11 of the Bankruptcy Code.
The Cole Schotz Bankruptcy & Restructuring Department has played a prominent role throughout the region in providing bankruptcy and out-of-court restructuring advice to a wide array of distressed healthcare providers.
Cole Schotz represented Passaic Beth Israel Hospital (“PBI”), a New Jersey nonprofit hospital that operated a 262-bed acute care hospital in Passaic in its Chapter 11 bankruptcy. In that case, Cole Schotz orchestrated the sale and merger of PBI with St. Mary’s, a neighboring hospital, resulting in the closure of St. Mary’s existing facility and the consolidation of both hospitals at PBI’s more modern campus. The transaction was financed through the first-time use of NJHCFFA Hospital Asset Transformation Bonds, which are backed by State of New Jersey credit enhancements. Cole Schotz led PBI and its board through all aspects of the Chapter 11 bankruptcy, as well as through the state regulatory process successfully concluding this transaction in February 2007.
In the Chapter 11 proceedings of Bayonne Medical Center (“BMC”), Cole Schotz was selected to protect the interests of Financial Security Assurance Inc. (“FSA”), the insurer of two bonds issued from NJHCFFA with an outstanding principal balance of $34 million. Cole Schotz, on behalf of FSA, has played an active role in “shaping” the bankruptcy proceeding in an effort to maximize value for the bondholders.
St. Vincent’s Catholic Medical Center of New York and related entities (collectively, “St. Vincent’s”) commenced Chapter 11 bankruptcy cases in the United States Bankruptcy Court for the Southern District of New York, culminating in the confirmation of a plan of reorganization. Critical to the success of that plan is St. Vincent’s construction of a new modern facility in downtown Manhattan based upon the sale of its existing facility to Rudin Development, LLC (“Rudin”). Cole Schotz represented Rudin throughout the bankruptcy process to assure it the benefit of its bargained for rights in the context of this complex acquisition and development transaction.
Cole Schotz has also been retained as bankruptcy counsel to St. Joseph’s Regional Medical Center in connection with the Chapter 11 bankruptcy of neighboring Barnert Hospital.