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Bankruptcy & Corporate Restructuring

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Cole Schotz’s Bankruptcy & Corporate Restructuring practice is a distinguished and nationally renowned full-service group that is regularly cited in Chambers USA: America’s Leading Lawyers for Business and lauded for a track record that boasts unparalleled effectiveness, success and value.

Complex in and out-of-court corporate restructurings, state and federal insolvency proceedings and high stakes bankruptcy litigation: Cole Schotz delivers innovative strategies and winning solutions for the distress arena expertly and efficiently.

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Bankruptcy & Corporate Restructuring Representative Matters

  • 710 Long Ridge Road Operating Company II, LLC d/b/a Long Ridge of Stamford, et al. (5 skilled and long term care nursing facilities) in their Chapter 11 cases
  • Highland Capital Management, L.P. in the Lake At Las Vegas Chapter 11 Cases, and the TCI Park West, Chapter 11 Case
  • Tribune Company, et al. in their Chapter 11 cases (as co-counsel)
  • AES New York Equity, LLC in its Chapter 11 case
  • RDA Holding Co., et al. (Reader’s Digest) (as conflicts counsel)
  • Adamar of New Jersey, Inc. a/k/a Tropicana Casino and Resort-Atlantic City in its Chapter 11 case
  • J.G. Wentworth, LLC, et al. in their Chapter 11 cases
  • Sagecrest Holdings Ltd. in its Chapter 11 case and Trustee of Sagecrest Liquidating Trust
  • 1701 Commerce, LLC in its Chapter 11 case
  • Gemcraft Homes, Inc. and its affiliates, in its Chapter 11 reorganization Beginning the case with 17 secured lenders and approximately $170 million in debt, Gemcraft succeeded in less than one year by confirming a Chapter 11 plan of reorganization and emerging from bankruptcy as an operating company with its ownership intact, and with exit financing of approximately $65 million
  • BNA Subsidiaries, LLC in its Chapter 11 case
  • Leslie Controls, Inc. in its Chapter 11 case
  • Official Committee of Unsecured Creditors in the Monitor Company Group Limited Partnership, et al. cases
  • Official Committee of Unsecured Creditors in the Patriot Coal Corporation, et al. cases (conflicts counsel)
  • Official Committee of Unsecured Creditors and Plan Administrator in the Merit Group, Inc., et al. cases
  • Official Committee of Unsecured Creditors in the Peak Resorts, Inc., et al. cases
  • Official Committee of Unsecured Creditors in the Federated Sports and Gaming, Inc. and Federated Heartland, Inc. cases
  • Official Committee of Unsecured Creditors in the Fibertower Network Services Corp., et al. cases
  • Foreign based directors and officers in the Ampal-American Israel Corporation Chapter 11 case
  • HP Enterprise Services, LLC in the American Airlines Chapter 11 case
  • YA Global Investments, L.P. as appellant and defendant in fraudulent conveyance litigation in the Global Outreach, S.A. Chapter 11 case
  • Rudin Development LLC, RSV LLC et al. as purchaser of assets in the St. Vincent’s Catholic Medical Centers of New York, et al. Chapter 11 cases
  • Dr. Michael Jaffe, Insolvency Administrator of Qimonda AG in its Chapter 15 proceeding
  • Martin W. Taplin & Associates, Inc. as appellate counsel in the Sagamore Partners, Ltd. d/b/a Sagamore Hotel Chapter 11 case
  • Pre-petition and DIP lender in the Biovest International, Inc. Chapter 11 case

The Foreign Representative of Hanjin Shipping Co., Ltd., one of the world's largest container shipping companies, retained Cole Schotz to assist him with seeking recognition in the United States of Hanjin’s South Korean receivership proceeding under Chapter 15 of the United States Bankruptcy Code. Hanjin’s U.S. filing came just a few days after it filed for court receivership in South Korea. Since then, Cole Schotz secured a provisional order barring interference with Hanjin’s business operations in the United States. Significantly, as a result of Cole Schotz’s efforts and the US Bankruptcy Court’s provisional order, all of Hanjin’s vessels bound for the US can enter US territory without fear of arrest or seizure.

Representing the Foreign Representative of Hanjin Shipping Co., Ltd., on December 13, 2016, Cole Schotz P.C. obtained final recognition of Hanjin’s Korean insolvency proceeding pursuant to Chapter 15 of the Bankruptcy Code, over the objections of numerous parties. Cole Schotz was successful in obtaining provisional relief to allow its U.S.-bound vessels to enter U.S. territory without fear of arrest or seizure. The decision by John K. Sherwood, presiding Bankruptcy Judge, formally brings Hanjin under the protection of U.S. bankruptcy law.

The Cole Schotz team was led by Ilana Volkov, Edward Kiel and Jacob Frumkin.
 


After close to three years of enduring state and regulatory roadblocks that prevented the sale of the Saint Michael's Medical Center, Cole Schotz was retained to file for Chapter 11 bankruptcy protection in August 2015 as a strategy to expedite the long-awaited sale of the facility to Prime Healthcare. In November 2015, after conducting an auction that drove up the sales price to $62 million, the Cole Schotz team achieved Bankruptcy Court approval of the sale of Saint Michael’s to Prime Healthcare. Cole Schotz worked with the relevant agencies of the State of New Jersey to obtain regulatory approval of the sale, allowing Saint Michael’s to maintain staffing levels and continue providing much needed patient care in the Newark community. In March 2016, Saint Michael’s Medical Center was granted final approval of its sale to Prime Healthcare, which closed on May 1, 2016. Prime Healthcare has agreed to keep the hospital open as a full service acute care and outpatient facility providing all of its existing services for a minimum of five years, hire substantially all 1,400 hospital employees, maintain or increase current levels of charity care, and maintain existing health insurance contracts. In addition, Prime Healthcare has agreed to invest $50 million to upgrade technology and services and continue to modernize the hospital..

The Cole Schotz team representing Saint Michael’s Medical Center included Michael D. Sirota, Gerald GlineRyan Jareck, Marc PressJacob Frumkin and Rebecca Hollander.


Cole Schotz congratulates Zayat Stables, the Zayat family and American Pharoah in achieving the Triple Crown!  

Cole Schotz proudly and successfully represented Zayat Stables in its Chapter 11 proceeding in the District of New Jersey. A plan of reorganization plan was quickly confirmed allowing Zayat Stables to emerge from Chapter 11 and maintain its stature as one of the nation’s largest and most prominent thoroughbred stables in the world.


Cole Schotz represents Trump AC Casino Marks LLC (“Trump AC”), owned and controlled by Donald J. Trump and his daughter Ivanka Trump, as licensors of certain “Trump” related trademark and intellectual property rights to Trump Entertainment Resorts, Inc., Trump Entertainment Resorts Holdings, L.P., Trump Taj Mahal Associates, LLC, Trump Plaza Associates, LLC, and Trump Marina Associates, LLC (the “Licensees”), in pursuing termination of the license agreement based on the Licensees’ various violations and breaches of the agreement.

Cole Schotz initially filed an emergent Order to Show Cause application with the Superior Court of New Jersey on August 5, 2014, seeking termination of the agreement and injunctive relief against the Licensees.  On September 9, 2014, however, the Licensees filed for bankruptcy protection before the U.S. Bankruptcy Court for the District of Delaware, resulting in an automatic stay of Trump AC’s pending state court litigation.

As a result, Cole Schotz filed a motion with the Delaware Bankruptcy Court for relief from the automatic stay in order to continue to pursue termination of the license agreement through the previously filed state court action.  After conducting expedited discovery and briefing the issues for the court, Judge Gross conducted a final hearing on Trump AC’s motion on December 11, 2014.  The Bankruptcy Court subsequently granted Trump AC’s motion in full by opinion and order issued on February 20, 2015, ruling the automatic stay lifted to allow Trump AC to continue its pending state court action to terminate the license agreement.


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.

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May 2016 Newsletter

Cole Schotz News May 2016

Commentary: There Are No Unencumbered Assets in Texas

The Wall Street Journal April 19, 2016

April 2016 Newsletter

Cole Schotz News April 2016

Another Alternative Fee Arrangement Bites the Dust

Bankruptcy & Restructuring Law Monitor March 29, 2016

March 2016 Newsletter

Cole Schotz News March 2016

Five Things to Consider When Approached by a Bankruptcy Claims Trader

Bankruptcy & Restructuring Law Monitor March 14, 2016

Sales of Goods on the Eve of Bankruptcy Can Be Tricky

Corporate Counsel February 16, 2016

Secured Creditors Beware: Liability Lurks in Lockboxes

Bankruptcy & Restructuring Law Monitor January 26, 2016

Is a Sound Business Purpose Always Enough?

Bankruptcy & Restructuring Law Monitor January 13, 2016

Can a Debtor Force a Secured Creditor To Accept "Dirt for Debt"?

The Practical Real Estate Lawyer July 1, 2015

Can Warrants Be Deemed "Original Issue Discount" and Disallowed as Unmatured Interest?

American Bar Association: Section of Litigation, Bankruptcy & Insolvency June 11, 2015

Expired CBAs Are Subject to the Bankruptcy Court's Jurisdiction and Rejection Pursuant to § 1113

ABI Labor and Employment Committee Newsletter December 4, 2014

Courts Reverse Trend on Interpretation of § 303(b)(1)

American Bankruptcy Institute October 2014

How to Finance the Future

Ski Area Management Magazine, March 2014 Issue March 10, 2014

Beware of Creditors Bearing Gifts: A Primer on Sharing Property in Chapter 11

Norton Journal of Bankruptcy Law and Practice December 1, 2013

New Jersey Practice Series - Sirota and Meisel, Debtor-Creditor Law Practice

West Publishing Group 2013

American College of Bankruptcy, Circuit Review, Third Circuit Chapter, NLP

American College of Bankruptcy, Circuit Review Edited by Professor Margaret Howard, Washington and Lee University 2013 Edition

Bankruptcy Issues Concerning LLCs

Data Trace Publishing Company California LLC Forms and Practice Manual, Chapter 18 2013

The Cash Management System Preference Defense

BNA's Bankruptcy Law Reporter March 20, 2013

To Gift or Not to Gift: Chapter 11 Plans in the 2nd and 3rd Circuits

Corporate Live Wire's Expert Guide: Bankruptcy & Restructuring March 12, 2013

Latest Trends in the Enforceability of Make-Whole Premiums

Bankruptcy & Restructuring Law Monitor February 4th, 2013

Absence of Reference to LLCs in the Code: An "Insider" Problem

American Bankruptcy Institute August 2012

When Non-Bankruptcy Alternatives Fail: Filing for Bankruptcy After Commencing a Receivership or Assignment for the Benefit of Creditors, 11th Annual Bankruptcy Law Conference 2009 (MCLE, Inc. 2009)

July 31, 2012

"Claims Designation: Where Courts Draw the Line for 'Bad' Behavior" from ABI's Mid-Atlantic Bankruptcy Workshop was selected for inclusion in ABI's newest book

Best of ABI 2011: The Year in Business Bankruptcy December, 2011

Sale Order May Not Protect You From Everything

Law 360 December 14, 2011

Advice for Winding Down Your Restaurant

Restaurant Hospitality and Insurancenewsnet.com November 28, 2011

Case Study: In Re Lemington Home For The Aged

Law 360 October 12, 2011

Case Study: HSRE-CDS I

Law 360 September 23, 2011

CMBS Certificate Holders Denied Standing in Innkeepers

Law Journal Newsletters July 2011

Art Hath An Enemy Call'd Ignorance: Bankruptcy and Artwork Consignment in New Jersey

New Jersey Volunteer Lawyers for the Arts August, 2011

Withdrawing From Multiemployer Defined Claims

Law 360 July 26, 2011

"Concerning the Use, Sale or Lease of Estate Property Other than Cash Collateral"

Commercial Bankruptcy Litigation, Chapter 7 July 25, 2011

Prepare for Takeoff: Creative DIP Financing

Law360 - Bankruptcy Law Newsletter May 13, 2011

Creditors' Derivative Standing on Shaky Ground with LLC's

ABI Secured Creditor Committee Newsletter, Volume 8, Number 2 March 2011

Application of the Common-Interest Doctrine in Bankruptcy Proceedings

American Bankruptcy Institute Journal February 2011

Constraints on Stay Relief Afforded to Chapter 15 Debtors

American Bankruptcy Institute International Committee Newsletter November 2010

Stub Rent: The Third Circuit's Decision in Goody's

American Bankruptcy Institute Journal October 2010

Visteon's Impact On Debtors' Ability To Cancel Benefits

Law 360 August 20, 2010

Case Study: Grossman's v. Gordon Van Brunt

Law 360 July 19, 2010

Vacating a Judgment under Rule 60(b)(4): A Review of the Espinosa Decision

American Bankruptcy Institute Bankruptcy Litigation Committee Newsletter June 2010

Structured Chapter 11 Dismissals: A Viable and Growing Alternative After Asset Sales

American Bankruptcy Institute This article was selected for inclusion in ABI's newest book, Best of ABI 2011: The Year in Business Bankruptcy. June 2010

The Importance of In Re Condor

Law 360 May 14, 2010

Ask A Lawyer: Fighting Bankruptcy Claims

The Record March 4, 2010

Bankruptcy Deadline Checklist, 4th Edition: An Easy-to-Use Reference Guide for Case Management and Administration

American Bar Association 2009

Ask A Lawyer: Alternatives to Bankruptcy

The Record December 17, 2009

Identifying Insiders for Purposes of §503(c)

American Bankruptcy Institute Journal October 2009

Claimants Fight Subordination

New York Law Journal September 28, 2009

The Nuts and Bolts of Involuntary Bankruptcy

American Bankruptcy Institute Journal June 2008

Maintenance and Repair Damages: Are They Capped under §502(b)(6)?

America Bankruptcy Institute Journal October 2007 October 2007

Avoiding Recharacterization of Debt to Equity

Cole Schotz Docket Spring 2007

A Primer on Reconstitution of a Creditors' Committee under §1102(a)(4)

American Bankruptcy Institute Journal June 2007

Debtor Indemnification of a Financial Adviser for Its Negligence Is Reasonable

New Jersey Law Journal United Artists Theatre Company clears up the confusion. Or does it? February 3, 2003

Retail Debtors Aggressively Attempt to Realize the Value of Shopping Center Leases

New Jersey Law Journal These efforts, however, often spur contentious litigation with landlords trying to protect their tenant mix with restrictive-use provisions February 2, 2003

Buyer and Seller Beware!

New Jersey Law Journal How three court decisions affect asset sales in bankruptcy proceedings February 1, 2003

The End of State Law Preference Actions?, New Jersey Law Journal

Ninth Circuit decision could impact debtors' use of state court insolvency proceedings Jun 18, 2007

 

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