Unsecured creditors are often the businesses that have fueled a debtor company’s operations and yet are frequently ignored and “in the dark” in the early stages of a chapter 11 case. We identify with our creditors’ committee clients and get personal value and professional pride by using our legal skills and creativity to achieve the best possible results for unsecured creditors. Creditors’ committees succeed best when they are informed, aggressive and ready to fight hard for their rights, while seeking consensual business solutions that can work for every constituency in a chapter 11 case. This has become our model for how to approach a case when representing a committee. We are active, aggressive dealmakers, but we are also prepared to litigate when necessary to protect the rights of unsecured creditors.
McDonald Hopkins has represented dozens of creditors’ committees throughout the United States. Listed below is a small sample of representative engagements.
- Keywell, LLC – represented committee for leading supplier of recycled titanium, high-temperature alloys and stainless steel. Prevailed in highly litigated adversary trial to equitably subordinate insider loans, benefitting unsecured creditors (Bankr. N.D. Ill)
- Country Stone – represented committee for leading supplier of concrete block garden materials and bagged garden products to big box retailers. Negotiated resolution through confirmed chapter 11 plan. (Bankr. Central D. Ill.)
- AFA Foods – represented committee for beef processor with more than $500 million revenue. Negotiated resolution with undersecured insider lender resulting in substantial recoveries. (Bankr. D. Del.)
- North Oakland Medical Center – represented committee for community hospital. Negotiated resolution in sale context resulting in substantial recovery for unsecured creditors. (Bankr. E.D. Mich.)
- Huffy Corporation – represented committee for leading bicycle manufacturer. Negotiated plan of reorganization with creditors obtaining cash recovery and equity in and control of reorganized company. (Bankr. S.D. Ohio)
- St. Mary of the Woods – represented committee for large continuing care retirement community, in which all unsecured obligations to residents were assumed in a going concern sale. (Bankr. N.D. Ohio)
- Ideal Electric Company – represented committee for manufacturer of electric generators. Initiated and resolved litigation against insiders resulting in substantial creditor recoveries. (Bankr. N.D. Ohio)
- James River Coal Company – represented committee for $400 million revenue coal mining company. Negotiated plan with undersecured lenders and initiated insider litigation, ultimately resulting in nearly full recovery for unsecured creditors. (Bankr. M.D. Tenn.)
- U.S. Concrete – represented committee for $600 million revenue concrete company. Creditors received full recovery. (Bankr. D. Del.)