Bankruptcy and Financial Restructuring Cases

While all of the cases represent experiences of members of the Bankruptcy Department, some of the cases listed were worked on by the attorneys before they joined Porzio. Unless otherwise noted, the cases described are venued in the District of New Jersey.

 

Casino & Gaming Industry

Revel II Casino Hotel Amenity Tenants

Served as counsel for the Amenity Tenants of the Revel Casino Hotel, which included highly and critically acclaimed restaurant, entertainment, nightclub, retail and spa establishments, to obtain a favorable ruling from the U.S. Bankruptcy Court for the District of New Jersey reaffirming their rights as tenants at Revel for the remainder of their lease terms and requiring the new owner of Revel to provide access to allow the Amenity Tenants to preserve physical assets, as well as to investigate, plan and take the necessary steps to restart their operations.

Revel I

Represented a significant construction contractor with an unpaid claim. Achieved a substantial recovery for the contractor.

Trump Casinos

Serve as co-counsel for casino noteholders owed approximately $500 million.

Video Gaming Company

Represented this $150 million-a-year developer, publisher and marketer of interactive entertainment software and accessories in an out of court workout with a $7 million judgment creditor.

Chemical

Old Bridge Chemicals, Inc.

Represent the Official Committee of Unsecured Creditors in the Chapter 11 proceedings of this chemical manufacturer.

Healthcare

As the below representative healthcare engagements reveal, we have achieved substantial distributions for our committee clients in a field where there is often little to no return to creditors.

 

Christ Hospital: Restructuring and Chapter 11 Debtor's Counsel – Porzio guided this Hospital and its thousands of creditors through a successful Chapter 11 reorganization.  We sold this not-for-profit to a for-profit operator, and provided funds for a substantial distribution to unsecured creditors, preserving 1,500 union jobs at this $150,000,000/year institution.

710 Long Ridge Road Operating Company II, LLC, et al. – Porzio represented the Official Committee of Unsecured Creditors in the bankruptcy cases of 710 Long Ridge Road Operating Company II, LLC, et al., a Chapter 11 restructuring case involving five nursing home facilities.  Due to financial distress and labor issues, these nursing homes were threatened with potential closure.  As committee counsel, Porzio assisted in the confirmation of a plan of reorganization that secured a 75% distribution to trade creditors and a fund providing for a reduced distribution for all other unsecured claims.

St. Mary's Hospital, Passaic – Porzio represented the Official Committee of Unsecured Creditors in the Chapter 11 reorganization of this hospital located in Passaic, New Jersey, and the post-confirmation creditor trust.  Although the confirmed plan estimated a slightly less than 5% dividend for unsecured creditors, we quadrupled that estimate, distributing dividends aggregating 20% to unsecured creditors. 

St. Joseph's Wayne Hospital: Restructuring Counsel – completed a successful out-of-court restructure of this hospital, bringing together diverse constituencies including creditors, the NJ Department of Health, bondholders, and employees to reach a successful restructuring/funding of the institution without Chapter 11, leading to its subsequent merger into St. Joseph's Regional Medical Center.

Drug Fair Group, Inc., et al. – Porzio represented the Official Committee of Unsecured Creditors in the Chapter 11 proceedings of this drugstore chain and the $50 million sale transaction.  Porzio successfully assisted in the negotiation of a $2.5 million carve-out for the benefit of Debtors’ unsecured creditors in this "no equity" case, obtaining a distribution for unsecured creditors where one was otherwise not available.

Nathan and Miriam Barnert Memorial Hospital Association, d/b/a Barnert Hospital – Porzio represented the Official Committee of Unsecured Creditors in the Chapter 11 proceeding of this hospital formally located in Paterson, New Jersey.  Through Porzio’s representation, the Committee played an active role in the sale of the hospital’s assets and facilitated competitive bidding that maximized value for the estate.

Miller Health Care, LLC – Porzio represented the Official Committee of Unsecured Creditors in the Chapter 11 proceeding of this nursing home operator.  Through Porzio’s representation, the Committee led the charge on investigating substantial claims against the Debtor’s landlord and facilitated a global resolution that formed the basis for a chapter 11 plan of reorganization, which included a distribution to unsecured creditors.

Pascack Valley Hospital Association, Inc. – Porzio represented the Official Committee of Unsecured Creditors in the Chapter 11 proceeding and liquidation of this hospital.  Although the case was administratively insolvent, a small distribution was made to unsecured creditors.

Lakeview Subacute Care Center, Inc. – Represented the shareholders of this skilled nursing facility in this successful bankruptcy proceeding which preserved shareholder value.

New Jersey Community Blood Center – Assisted this facility in a successful out of court restructuring and re-issuance of its EDA bonds.

Manufacturing

Delawanna Plastics
Represent this plastics manufacturer in an out of court liquidation and distribution of assets.

In re Globe Manufacturing Corp.
United States Bankruptcy Court for the Northern District of Alabama. Represented the lenders in the $52 million sale of a spandex manufacturing business and negotiated releases for the lenders as part of the Chapter 11 plan.

In re Muralo
Represent the Official Committee of Unsecured Trade Creditors in this Chapter 11 case of a paint manufacturing company.

Retail/Service Companies

In re Ames Department Store
United States Bankruptcy Court for the Southern District of New York Represent several creditors in this national department store’s bankruptcy proceeding.

In re Broadway Trading
Serve as Special Litigation Counsel to the Liquidating Trustee in connection with pursuing avoidance actions.

In re Enron Corp.
United States Bankruptcy Court for the Southern District of New York. Represent several defendants in preference/ fraudulent conveyance litigations brought by Enron Corp.

In re EZ Mailing
We are currently shepherding this nationwide freight and logistics company with 700 employees through a Chapter 11 proceeding.

In re Omne Staffing
Represent client in defense of turnover action in excess of $700,000.

Video Gaming Company
Represented this $150 million-a-year developer, publisher and marketer of interactive entertainment software and accessories in several out of court work-outs/restructurings.

In re Zagaras
Represent the secured lender in the bankruptcy proceeding of a three-store supermarket chain.

Telecommunications

In re Connectco
United States Bankruptcy Court for the Southern District of New York. Represented this Chapter 11 Debtor which was a telecom company indebted to WorldCom for $100 million.

In re Dominican Communications
Represented the Debtor and reorganized this nationwide niche-telecommunication provider within 120 days of filing the Chapter 11 petition.

In re GlobalNet Corporation
United States Bankruptcy Court for the Southern District of New York. Represented major equipment/software supplier and successfully negotiated a consent order which required the debtor to pay a substantial sum to the client within months of the bankruptcy filing in exchange for the client’s equipment.

In re Metromedia Fiber Network (MFN)
United States Bankruptcy Court for the Southern District of New York. Represented the Chairman of the Official Committee of Unsecured Creditors in this Chapter 11 proceeding of the largest fiber-optic provider in the United States. MFN also had a substantial data center and networking business for web hosting customers much of which was sold during the Chapter 11.

In re National Telecommunications Corp.
Represented the Official Committee of Unsecured Creditors in this bankruptcy of the tenth largest long distance telephone company in the United States. We continue to represent the Liquidation Trustee post-confirmation and have recovered in excess of $3 million of avoidance action proceeds for distribution to unsecured creditors.

In re NorVergence, Inc.
Represent the Chapter 7 Trustee as Special Litigation Counsel in the liquidation of a national telecommunications company.

In re Skyview Media Group
Represent the senior secured creditor owed $130 million in the bankruptcy of a satellite television company.

In re Worldcom
United States Bankruptcy Court for the Southern District of New York. Represent an unsecured creditor whose $60 million claim was objected to by the debtor.