Bankruptcy & Corporate Restructuring

Download PDF Version

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.


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

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 Gline and Ryan Jareck, Jacob 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.

June 2016 Newsletter

Cole Schotz News June 2016

Getting the Most Bang for Your 503(b)(9) Claims

Bankruptcy & Restructuring Law June 7, 2016

Jill B. Bienstock

Hosted on the FirmWise platform.

© Cole Schotz P.C.


The materials on this site have been prepared by Cole Schotz P.C. for general informational purposes only and are not intended to constitute legal advice. Viewers should not act upon this information without seeking professional counsel on the specific facts and circumstances in question from an attorney licensed in their jurisdiction. Use of this site does not create an attorney-client relationship between the user and Cole Schotz or any lawyer(s) within the firm. Any information sent to Cole Schotz or its lawyers through this site will not be treated as confidential and is not protected by the attorney-client privilege.

© Cole Schotz P.C.

Attorney Advertising

This website is an advertisement for a law firm. Statements and previous outcomes do not imply similar results in your matters.

© Cole Schotz P.C.