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Bankruptcy and Creditors' Rights
Our Bankruptcy and Creditors' Rights Department represents debtors, trustees, committees and creditors in bankruptcy cases. We also represent Oregon and Washington-based community and regional banks. National financial institutions frequently engage us to deal with their problem loans in Oregon, Washington and California. Buyers also engage us to assist them in acquiring businesses or assets in distressed situations, and in acquiring and collecting distressed loan portfolios. We also represent borrowers in workouts and out-of-court restructurings.
Bankruptcy Cases
We represent business debtors in Chapter 11 reorganization cases. We also represent appointed and ad hoc creditors' committees, trustees and creditors. Chapter 11 cases that we have handled include the following:
- We represented 27 affiliated hotel companies in their jointly administered Chapter 11 cases. The debtors' properties were located in eight states throughout the west. We confirmed a plan of reorganization for these debtors that restructured the secured debt, eliminated about $25 million in yield maintenance premiums, default interest and late charges, and preserved the interests of equityholders intact.
- We represented a manufacturer of heaters sold nationally for residential use. The debtor faced an administrative proceeding brought by the Consumer Product Safety Commission ("CPSC") seeking a recall of the heaters it had produced over the past 40 years. The debtor also faced a product liability class action and large environmental cleanup claims. We negotiated a recall program with the CPSC, settled the class action, and negotiated cleanups of the environmental sites using insurance recoveries.
- We represented one of the largest privately owned chemical distribution companies in the west. We assisted the company in selling many of its branch locations prior to filing a Chapter 11 case, and then served as debtor's counsel in the case. The case resulted in payment in full of secured creditors and a distribution to unsecured creditors of approximately $15 million. As part of this case, we also handled 200 preference cases resulting in over $4 million in collections.
- We represented the City of Portland in a case filed by an affiliate of the Portland Trail Blazers. The City had several contracts and leases with the debtor relating to the Rose Quarter Complex, which includes Portland's Rose Garden Arena and Memorial Coliseum. We obtained a ruling that all of the City's leases and contracts were required to be assumed or rejected as a single whole, thus eliminating the debtor's ability to pick and choose among them. We also obtained a ruling that several million dollars in capital improvements needed to be made to the Rose Garden, for it to be restored to a first class NBA arena as required by the City's lease.
Financial Institutions
We represent several community and regional banks in enforcing loans in Oregon, Washington, California, Idaho and Montana. We also represent them in originating and documenting their commercial, agricultural and commercial real estate loans. We have handled workouts and recoveries for national, out-of-region financial institutions with respect to a broad range of commercial and corporate credits. Examples of matters in which we have represented financial institutions include the following:
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Workout negotiations for lenders on loans to manufacturers, wholesale distributors, retailers, assisted living centers, hotels, auto dealers, fast food retailers, agricultural producers and processors, construction companies, general contractors, and the high tech and wood products industries.
- Receivership and judicial foreclosure proceedings on loans secured by resort and hospitality properties, residential subdivisions, rolling stock, heavy equipment, high tech manufacturing equipment and technology.
- Enforcement actions against corporate borrowers and related guarantors.
- Representation of lenders in Chapter 11 cases involving resorts, high-end residential, food service, chain retail and health care.
Distressed Buyers
We frequently represent parties seeking to purchase businesses or assets from bankruptcies and receiverships. We represented a global investment banking firm in acquiring a portfolio of distressed assets from a federal court receiver, pursuant to a public bidding process. We represented an affiliate of a private, global investment firm in purchasing the stock of a telecommunications company pursuant to a Chapter 11 plan. We have successfully represented buyers of assets in Chapter 11 cases involving a wide variety of businesses and properties.
Professionals within this practice area:
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