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There is no substitute for experience when it comes to helping companies in financial distress. Our group has successfully handled over 150 corporate reorganizations in Minnesota and across the country, and our team members have more than 100 years of combined business bankruptcy and restructuring experience.
Behind our reorganizations experience are many more out-of-court workouts and confidential advice and planning engagements. These representations include services for debtors, creditors, buyers and sellers of distressed assets, receivers and other parties that may be affected by the financial distress of a business.
Achieving our client’s goals is about more than legal expertise. It’s about taking time to understand a client’s specific financial and operating concerns, and providing real, practical business solutions and respectful – yet honest – counsel on how to address critical issues. It’s about effective negotiation and advocacy with multiple parties such as lenders and unsecured creditors, and the ability to act quickly and efficiently under challenging circumstances. Finally, it’s about having the skills to generate both primary and alternative options that can help the clients meet their objectives. At Fredrikson & Byron, these are the attributes that set us apart.
Services:
For debtor or creditor clients, we provide services in bankruptcy reorganization cases, out-of-court restructuring, workouts of commercial loans, liquidations, debtor-creditor litigation in and out of bankruptcy court, commercial and banking litigation, reclamations, and receiverships and assignments for benefit of creditors.
The Bankruptcy, Reorganization & Workouts Group represents creditors and debtors in diverse industries including:
Professional Leadership:
One of our members chaired and two others were members of the committee that drafted the recently enacted (2012) Minnesota statutes governing receiverships and assignments for the benefit of creditors. Group attorneys are active as members of and leaders in a number of professional insolvency organizations, including the Business Bankruptcy Committee of the American Bar Association Section of Business Law, the American Bankruptcy Institute, the Turnaround Management Association (Upper Midwest Chapter), the Hennepin County Bar Association Debtor/Creditor Section, and the Minnesota State Bar Association, Bankruptcy Section. In addition to holding leadership positions in these organizations, two of our attorneys are also co-instructors of the Bankruptcy Clinic at the University of Minnesota Law School; one is a nationally Certified Business Bankruptcy Specialist and two are Fellows in the American College of Bankruptcy.
The Bankruptcy, Reorganization & Workouts Group represents creditors and debtors in diverse industries. See below for a list of recent representations in various industries.
Manufacturing |
|
| Equipment Manufacturer | |
| Industry/business: | Equipment manufacturer |
| Representation/date: | Manufacturer/Lender / 2016 |
| Transaction size: | $1M in equipment |
| Key outcome: | The debtor breached its payment obligations for equipment financed through the client, and filed a Chapter 11 bankruptcy case. On behalf of the client, objected to sale of assets and asserted other rights, resulting in buyer of assets paying full amount of debt. |
| HEI, Inc. | |
| Industry/business: | Printed circuit board manufacturer |
| Representation/date: | Debtor / 2015 |
| Transaction size: | Approximately $30M of revenue |
| Key outcome: | Successful auction, which increased price by 50% over stalking horse bid. |
| Rotonics Manufacturing, Inc. | |
| Industry/business: | Manufacturer and marketer of plastic products |
| Representation/date: | Debtor / 2012 |
| Transaction size: | Revenues of approximately $50M |
| Key outcome: | Successful out of court sales of manufacturing facilities with approval of constituents through assignment for the benefit of creditors. |
| Genmar Holdings, Inc. (and 21 subsidiaries) | |
| Industry/business: | One of world’s largest boat manufacturers |
| Representation/date: | Debtor / 2009-2010 |
| Transaction size: | Prior company revenues of over $1B |
| Key outcome: | Sale of business assets as going concern to several buyers. Turnaround Management Association Upper Midwest Chapter Transaction of the Year 2010 |
| PVC Compounders, Inc. | |
| Industry/business: | Manufacturer of flexible and rigid polyvinyl chloride components |
| Representation/date: | Debtor / 2009 |
| Transaction size: | Revenues of approximately $50M |
| Key outcome: | Successful out of court sales of manufacturing facilities with approval of constituents. |
| (Precision Manufacturer for Defense Industry) | |
| Industry/business: | Manufacturer of precision components and assemblies of metal products |
| Representation/date: | Debtor / 2009 |
| Transaction size: | Revenues of approximately $15M |
| Key outcome: | Successful out of court sale of assets with approval of constituents. |
| A.P.I. | |
| Industry/business: | Installer and distributor of fire proofing material/asbestos case |
| Representation/date: | Debtor / 2008 completion |
| Transaction size: | Revenues of approximately $62M / $250M plus in liabilities |
| Key outcome: | API is the only confirmed asbestos Chapter 11 case in the Eighth Circuit (and among a small number of such cases nationally). The case involved a company which sold and installed asbestos insulation products and faced massive liability from product liability claims. The company was able to confirm a Chapter 11 plan involving a contribution to a trust and assignment of its remaining insurance and go forward as a successful business after reorganization. |
| Victor Plastics, Inc. | |
| Industry/business: | Custom plastic molding for household appliance, automotive and other industries |
| Representation/date: | Represented equity/creditor interests in sale of business assets in bankruptcy / 2008 |
| Transaction size: | Revenues of approximately $81M / $15M in assets |
| Key outcome: | Assisted investors in recovery of guaranty obligations in Chapter 11 asset sale. |
| Hitchcock Industries | |
| Industry/business: | Aluminum foundry defense contractor |
| Representation/date: | Debtor / 2006 |
| Transaction size: | Revenues of approximately $42M / $45M in asset sale |
| Key outcome: | Case recognized as “Transaction of the Year” in 2006 by the Upper Midwest Chapter of the Turnaround Management Association because the successful sale paid all creditors in full and paid amounts to the equity holders far in excess of what was expected. |
| Dakota Arms | |
| Industry/business: | High end specialty firearms manufacturer |
| Representation/date: | Debtor / 2006 |
| Transaction size: | Revenues of approximately $4M / $4-5M in assets, with additional assumption of debt |
| Key outcome: | Represented Chapter 11 debtor in extensive negotiations with creditors and litigation leading up to successful sale of assets of specialty gun manufacturer. |
| Sheldahl | |
| Industry/business: | Manufacturer of high tech components to the automotive and aircraft industries |
| Representation/date: | Debtor / 2004 |
| Transaction size: | Revenues of $100M+ / $35M in assets |
| Key outcome: | Chapter 11 plan confirmed with sale to existing equity to clean-up balance sheet and allow additional investment. |
| BMC Industries | |
| Industry/business: | Manufacturer of aperture masks and lenses used in eyeglasses/Vision-Ease |
| Representation/date: | Debtor / 2004 |
| Transaction size: | Revenues of approximately $62M / $155M in assets |
| Key outcome: | Represented debtor in obtaining bankruptcy court approval of $50M sale of Vision-Ease. Assisted in confirmation of a plan of liquidation resulting in payoff owed to service lenders. |
| Sasol DHB Holdings, Inc. | |
| Industry/business: | Distribution of agricultural chemicals |
| Representation/date: | Debtor / 2003 |
| Transaction size: | $5M |
| Key outcome: | Chapter 11 plan confirmed. |
| BK Entertainment, Inc. and 3 Subsidiaries | |
| Industry/business: | Manufacture and sale of bingo products |
| Representation/date: | Debtor / 2001-2006 |
| Transaction size: | $100M plus |
| Key outcome: | Chapter 11 plan confirmed. |
| Other notable cases: | Munsingwear, Inc. (chapter 11 plan confirmed), Endotronics (chapter 11 plan confirmed) |
Healthcare |
|
| Valley View of Jordan, LLC | |
| Industry/business: | Assisted living facility |
| Representation/date: | Debtor / 2013-2014 |
| Transaction size: | Approximately $5M of debt |
| Key outcome: | Confirmed Chapter 11 Plan of Reorganization. |
| Intrepid USA | |
| Industry/business: | National home health care business with 200 locations in 38 states |
| Representation/date: | Debtor / 2004 |
| Transaction size: | Revenues of $200M+ |
| Key outcome: | Successful restructuring of business preserving 500 jobs; negotiated and led confirmation of Chapter 11 plan that resolved numerous stakeholder issues. |
| Health Risk Management | |
| Industry/business: | Healthcare |
| Representation/date: | Debtor / 2001 |
| Transaction size: | Revenues of approximately $39M |
| Key outcome: | Successful sale in bankruptcy of two separate businesses related to third-party payor services in health care industry. |
| HMU | |
| Industry/business: | Chain of nursing homes in Wisconsin |
| Representation/date: | Debtor / 2000 |
| Transaction size: | Revenues of approximately $11M |
| Key outcome: | Chapter 11 plans confirmed. |
Energy |
|
| Fibrominn LLC | |
| Industry/business: | Electric power producer |
| Representation/date: | Minnesota counsel to debtor in state receivership action / 2015 |
| Transaction size: | Total debt of over $200M |
| Key outcome: | Sale of 55-megawatt biomass-fired power plant. |
| NRG Energy | |
| Industry/business: | Non-regulated electric power producer |
| Representation/date: | Local counsel for debtor / 2002 |
| Transaction size: | Approximately $9B |
| Key outcome: | Successfully obtained dismissal of involuntary bankruptcy petition filed by former officers; Company subsequently re-filed in New York and successfully reorganized approximately $9B in debt. |
| (Minnesota Ethanol Plant) | |
| Industry/business: | Ethanol cooperative plant |
| Representation/date: | Debtor / 2001 |
| Transaction size: | $25M |
| Key outcome: | Led team in renegotiating terms of construction and permanent financing of about $25M. |
Mining |
|
| Eveleth Mines/Thunderbird Mining Co. | |
| Industry/business: | Taconite mine |
| Representation/date: | Committee (local) / 2003 |
| Key outcome: | Negotiated treatment of unsecured claims in sale of assets of large taconite mining operation. |
Real Estate/Construction |
|
| Industry/business: | Land developers, builders and lenders. We currently represent multiple distressed real estate industry clients in cases, including: developers, integrated builders, lumber yards/mill works, bank lenders and specialty construction lenders in workouts, foreclosures and bankruptcies related to the severe slump in residential real estate |
| Representation/date: | Workouts, foreclosures and bankruptcies / Ongoing |
| Transaction size: | Total of debt transactions exceeding $1B to date. |
| Privately Held Construction Company | |
| Industry/business: | Construction |
| Representation/date: | Debtor / 2016-2017 |
| Transaction size: | Several million dollars in debt or bond claims |
| Key outcome: | The debtor experienced financial difficulty due to falling oil-prices and increased competition, resulting in several millions of dollars in defaulted bank debt and bond claims. Negotiated a substantial discount on claims made by two bonding companies, allowing the debtor to restructure its bank debt and continue operations. |
| Lyman Lumber Company | |
| Industry/business: | Supplier of building materials and services, lender to builders and developer |
| Representation/date: | Sale of assets in bankruptcy 363 sale / 2011 |
| Transaction size: | Revenue in excess of $400M in prior years; Total debt of more than $100M |
| Key outcome: | Business sold as going concern with jobs saved and maximum value obtained for creditors. |
| Gerald Trooien | |
| Industry/business: | Commercial Real Estate Developer |
| Representation/date: | Debtor / 2010-2011 |
| Transaction size: | Over 100 separate entities; $200M in debt |
| Key outcome: | Confirmed Chapter 11 plan that permitted debtor to retain remaining assets and to share proceeds with creditors. One of Twin Cities Business Magazine’s Top Ten Business Litigation Cases of the Year (#3) 2011. |
| Fenton and Bowles (Pool D) | |
| Industry/business: | Owners of commercial real estate |
| Representation/date: | Chapter 11 / 2011 |
| Transaction size: | Approximately $13M in debt |
| Key outcome: | Plan confirmed over objection of secured creditors (7/17/12). |
| Southside Lumber Company | |
| Industry/business: | Lumber yard and truss construction |
| Representation/date: | Debtor / 2009 |
| Transaction size: | Revenues of approximately $25M |
| Key outcome: | Successful out of court sale of assets with over 25% distribution to unsecured creditors. |
| Lyman Lumber Company | |
| Industry/business: | Largest supplier of building materials in Upper-Midwest, also in Pacific Northwest; finance to real estate industry and real estate development |
| Representation/date: | Complex out of court workout / 2007-2008 |
| Transaction size: | Revenues of approximately $400M |
| Key outcome: | 2008 TMA (National) Transaction of the Year (mid-size). 2008 TMA Upper-Midwest Transaction of the Year. |
| Lawrence A. Kreger | |
| Industry/business: | Real estate developer |
| Representation/date: | Individual Chapter 11 case/ 2000-2003 |
| Key outcome: | Chapter 11 plan confirmed. |
Retail |
|
| Horizon Hobby | |
| Industry/business: | Retail |
| Representation/date: | Buyer / 2018 |
| Transaction size: | $22M purchase price |
| Key outcome: | Represented buyer Hobbico, which filed a Chapter 11 bankruptcy case in Delaware. |
| Gander Mountain | |
| Industry/business: | Outdoor Retail |
| Representation/date: | Debtor counsel / January 2017-Feb. 2018 |
| Transaction size: | $450M-500M |
| Key outcome: | Successful sale of business in two transaction: going concern sale and GOB liquidation sales of the rest. |
| Wagstaff Minnesota, Inc. (and related entities) | |
| Industry/business: | Owner/operator of 77 KFC franchises |
| Representation/date: | Minnesota counsel / 2011-2012 |
| Transaction size: | Revenues of approximately $75M / Total debt of more than $60M |
| Key outcome: | Pending Chapter 11 cases. |
| Duke & King Acquisition Corp. | |
| Industry/business: | Burger King Franchisee with 92 restaurant locations |
| Representation/date: | Minnesota counsel / 2010-2011 |
| Transaction size: | Revenues of approximately $89M |
| Key outcome: | Majority of restaurants sold as going concern in three regions to three buyers, confirmed Chapter 11 liquidating plan with anticipated 18-36% distributions. |
| 2nd Swing | |
| Industry/business: | Retailer of new and used golf equipment |
| Representation/date: | Debtor / 2007 |
| Transaction size: | Revenues of approximately $63M / $9M in assets |
| Key outcome: | Liquidation of national retail company in Chapter 11 case. |
| Seasonal Concepts | |
| Industry/business: | Retailer of patio/garden furnishings and décor |
| Representation/date: | Debtor / 2007 |
| Transaction size: | Revenues of approximately $25M |
| Key outcome: | Sale of assets in Chapter 11 case. |
| Downtown Mall, LP and Center Development Venture (Southbridge Mall) | |
| Representation/date: | Debtor, Chapter 11 / 1997 |
| Transaction size: | $20M |
| Key outcome: | Chapter 11 plan confirmed. |
Retail/Entertainment |
|
| (Family Entertainment Center) | |
| Industry/business: | Family center providing dining, event, bowling and other entertainment services |
| Representation/date: | Debtor / 2012 |
| Transaction size: | Revenues of approximately $10M |
| Key outcome: | Successful restructuring of secured debts. |
Hotel |
|
| Great American Hotel Group | |
| Industry/business: | Hotel |
| Representation/date: | Receiver / 2016-2017 |
| Transaction size: | More than $6M in bank debt and millions in additional claims |
| Key outcome: | Represented Receiver of hotel. The debtor filed a bankruptcy case. Bankruptcy Court ordered relief from the stay to allow the Receiver to continue to operate the hotel until sold with the approval of the Court. |
| Hotel/Indoor Water Park | |
| Industry/business: | Hotel and indoor water park |
| Representation/date: | Debtor / 2011 |
| Transaction size: | Revenues of approximately $15M |
| Key outcome: | Successful restructuring of secured debts, including reduction in principal. |
| Sierra Snowboards | |
| Industry/business: | Internet sale of consumer product |
| Representation/date: | Represented purchaser of business engaged in internet sales of snowboards / 2010 |
| Transaction size: | Approximately $7M |
| Key outcome: | Client acquired valuable internet business in 363 sale conducted in bankruptcy court in California. |
| Gold Rush I, LLC | |
| Industry/business: | Hotel and casino |
| Representation/date: | Debtor / 2001-2002 |
| Transaction size: | Revenues of approximately $7M |
| Key outcome: | Chapter 11 plan confirmed. |
| Underwater World | |
| Industry/business: | Aquarium in Mall of America |
| Representation/date: | Debtor / 1998 |
| Transaction size: | Revenues of $10-15M |
| Key outcome: | Confirmed sale in Chapter 11 plan. |
Food/Agriculture |
|
| Grain Logistics and Merchandising Company | |
| Industry/business: | Agriculture/grain supply chain logistics and merchandising |
| Representation/date: | On-going |
| Transaction size: | Annual revenues in excess of $500M |
| Key outcome: | Continued advice on potential debt restructuring. |
| Purified Renewable Energy | |
| Industry/business: | Ethanol production |
| Representation/date: | 2014 – Chapter 11 Section 363 sale |
| Transaction size: | Under $10M |
| Key outcome: | Approved sale to secured lender. |
| North Dakota Ag Producer | |
| Industry/business: | 25,000 acre farm producing various crops |
| Representation/date: | 2016 |
| Transaction size: | $80M |
| Key outcome: | Workout negotiations with major secured lender Great Western Bank. |
| Allan and Marlene Verdoes | |
| Industry/business: | Production agriculture |
| Representation/date: | 2012-2014 |
| Transaction size: | $15M |
| Key outcome: | Confirmed Chapter 11 plan. |
| Cooperative Finance Association | |
| Industry/business: | Lending to agriculture producers |
| Representation/date: | 2000’s |
| Transaction size: | $10M |
| Key outcome: | Loan workout/refinancing/paid in full. |
| Cooperatively-Owned Minnesota-Based Ethanol Producer | |
| Industry/business: | Ethanol production |
| Representation/date: | 1998 |
| Transaction size: | $6M |
| Key outcome: | Loan workout and refinance of senior secured debt. |
| Ag Chemical Supplier | |
| Industry/business: | Supplier of farm chemicals to agricultural producers |
| Representation/date: | Various |
| Transaction size: | $250,000-$1M |
| Key outcome: | Successfully enforce lien rights and judgments. |
| Ag Livestock Producer | |
| Industry/business: | Cattle feeding/production agriculture |
| Representation/date: | 1990’s |
| Transaction size: | $7.5M |
| Key outcome: | Successfully negotiated loan workout and refinance. |
| Ag Equipment Dealer | |
| Industry/business: | Agriculture equipment dealer – Midwest |
| Representation/date: | 2005 |
| Transaction size: | $3M |
| Key outcome: | Represented client as successful purchaser of Iowa-based dealer out of bankruptcy. |
| Multi-State Dairy Operator | |
| Industry/business: | Dairy production |
| Representation/date: | 2002 |
| Transaction size: | $8M |
| Key outcome: | Represented successful bidder/purchaser of dairy operations out of Chapter 11 bankruptcy. |
| Regional Bank | |
| Industry/business: | Dairy operator |
| Representation/date: | 2010 |
| Transaction size: | $12M |
| Key outcome: | Credit bid assets out of Chapter 11 bankruptcy. |
| Community Bank | |
| Industry/business: | Hog production |
| Representation/date: | 1990’s |
| Transaction size: | $6M |
| Key outcome: | Successful enforcement of foreclosure remedies for operating loan. |
| Tracy Clement | |
| Industry/business: | Agriculture |
| Representation/date: | 2016-2018 |
| Transaction size: | $10M-$50M |
| Key outcome: | Managed liquidation of farming operation. |
| (Family Farming Operation) | |
| Industry/business: | Agriculture |
| Representation/date: | 2016-2017 |
| Transaction size: | $20M-40M |
| Key outcome: | Restructured secured debt. |
| (Family Farmers) | |
| Industry/business: | Farming operations on over 3,000 acres of land |
| Representation/date: | Debtors / 2011 |
| Transaction size: | Creditors with claims of approximately $15M |
| Key outcome: | Chapter 11 plan confirmed. |
| General Mills, Inc. | |
| Industry/business: | Food manufacturer |
| Representation/date: | Creditor / Reclamation, preference defense, setoff, and other claims in large Chapter 11 cases (Fleming Foods and others) |
| Key outcome: | Work with food manufacturer, often in conjunction with other large trade vendors, to protect and realize on multimillion dollar reclamation claims, setoffs, and unsecured claims, and to defend against preference actions by debtor or trustee. |
| Kemps/Marigold | |
| Industry/business: | Dairy food manufacturer |
| Representation/date: | Creditor / Reclamation, preference defense, setoff, and other claims in large Chapter 11 cases (Fleming Foods and others) |
| Key outcome: | Work with food manufacturer, often in conjunction with other large trade vendors, to protect and realize on significant reclamation claims, setoffs, and unsecured claims, and to defend against preference actions by debtor or trustee. |
| M.A. Gedney Company | |
| Industry/business: | Food manufacturer |
| Representation/date: | Committee / 2002-2004 |
| Transaction size: | Revenues of approximately $24M |
| Key outcome: | Chapter 11 plan confirmed. |
| Tri-Valley Growers | |
| Industry/business: | Large California cooperative grower of tomatoes |
| Representation/date: | Represented investment banker in employment and fee payment issues/ 2004 |
| Key outcome: | Obtained approval of client employment and payment of success fee upon multimillion dollar sale of grower assets. |
Charitable and Religious Organizations/Nonprofit |
|
| Christ’s Household of Faith | |
| Industry/business: | Nonprofit |
| Representation/date: | Debtor / 2013-2017 |
| Transaction size: | Annual revenue of approximately $15M with real estate valued at approximately $15M, which supported more than 500 members |
| Key outcome: | Christ’s Household of Faith community was threatened by foreclosure, including 30 homes, commercial property, farm and businesses. A bankruptcy case was filed to stay the foreclosure. A bankruptcy plan was confirmed with the approval of creditors taking-out the primary lender with new financing, restructuring debts, and forgiving millions of dollars of loans. By confirming the plan, the community was also saved. |
Services |
|
| We have developed special knowledge and experience regarding professional fees in Chapter 11, and have represented investment banks, private equity funds, venture funds and other professionals in bankruptcy courts across the country. | |
| Work Force Management and Temporary Staffing Agency | |
| Industry/business: | Work Force Management and Temporary Staffing |
| Representation/date: | Creditor / 2016-2017 |
| Transaction size: | More than 100 employees and millions of dollars in potential damages |
| Key outcome: | The client provided workforce management and temporary staffing solutions to Fortune 100 corporations. Synico provided temporary workers for client’s primary customer. Synico filed a Chapter 11 bankruptcy case threatening the services to client’s primary customer. On behalf of the client, negotiated a resolution where temporary staff was paid and transitioned to new employer without disruption to client’s primary customer. |
| SCICOM Data Services, Ltd. | |
| Industry/business: | Data management |
| Representation/date: | Debtor / 2013-2014 |
| Transaction size: | Approximately $15M of revenue |
| Key outcome: | Sale of operating assets to industry competitor. |
| Great Lakes Quick Lube | |
| Industry/business: | Auto service/franchisee/operator of 100+ rapid oil change facilities throughout the Midwest |
| Representation/date: | Debtors / 2012 |
| Transaction size: | Revenues of approximately $30M |
| Key outcome: | Sale of 30+ facilities to fund successful Chapter 11 reorganization. |
| Fire Suppression Services | |
| Industry/business: | Designer and installer of fire suppression services, focusing on large new-construction commercial projects |
| Representation/date: | Debtor / 2010 |
| Transaction size: | Revenues of approximately $25M |
| Key outcome: | Successful out of court restructuring of secured debt. |
| PGI Companies and PGI Fulfillment, Inc. | |
| Industry/business: | Printing, personalization, and distribution of direct mail |
| Representation/date: | Debtor / 2009-2010 |
| Transaction size: | Revenues of approximately $15M |
| Key outcome: | Chapter 11 plan confirmed. |
| Ciprico, Inc. | |
| Industry/business: | Software and hardware computer storage business |
| Representation/date: | Debtor / 2008-2009 |
| Transaction size: | Revenues of approximately $9M / $5-10M |
| Key outcome: | Sales in Chapter 11 case. |
| Rider Bennett, LLP | |
| Industry/business: | Leading Minnesota law firm |
| Representation/date: | Chapter 11 case / 2007-2008 |
| Key outcome: | Chapter 11 liquidating plan confirmed. |
| ACRO Business Finance Corp. | |
| Industry/business: | Asset based lender |
| Representation/date: | Chapter 11 case / 2006-2007 |
| Transaction size: | $22M loan portfolios |
| Key outcome: | Chapter 11 liquidating plan confirmed. |
| Mesaba Airlines | |
| Industry/business: | Minnesota airline, affiliated with Northwest Airlines |
| Representation/date: | Represented airline industry specialist consultants in employment and fee payment issues / 2005-2008 |
| Key outcome: | Obtained approval of client employment terms and payment of consulting fee upon debtor’s reorganization. |
Professionals/Receiverships |
|
| First United Funding, LLC | |
| Industry/business: | Financial institution |
| Representation/date: | Receiver / 2009-2017 |
| Transaction size: | Ponzi scheme involving more than $700M in loan participations and billion in cash transactions |
| Key outcome: | Identified victims of the fraud and obtained Court approval of the method to allow and pay victim claims totaling more than $91M. Recovered tens of millions of dollars in loans made by First United, and recovered more than $25M in fraudulent transfer and similar claims, resulting in paying 99% of the victim claims. |
| Meer, LLC and Osseo-Brooklyn School Bus Company | |
| Industry/business: | Real estate and transportation |
| Representation/date: | Receiver / 2016-2017 |
| Transaction size: | More than $25M in assets and millions of dollars of loans in default with negative cash flow |
| Key outcome: | Realized market value for several properties, settled debts at discount, restructured remaining debts resulting in positive annual cash flow for properties, and resolved dispute among ownership. |
| Chapter 7 Trustee, Genmar Holdings, Inc. (and subsidiaries) | |
| Industry/business: | Completion of liquidation of boat manufacturer |
| Representation/date: | Represent Chapter 7 trustee in more than 400 preference cases/ 2011-2012 |
| Key outcome: | Collection of funds for estate (amount not yet determined). |
| Minnesota Print Services, Inc. | |
| Industry/business: | (Fictitious) print broker business |
| Representation/date: | Receiver / 2009 – 2011 |
| Transaction size: | Creditors with outstanding claims of $50M |
| Key outcome: | Recovered assets, instituted distribution plan, and made distributions to unsecured creditors of over 25%
Awarded Transaction of Year by Turnaround Management Association Upper Midwest Chapter in 2011. |
| Turnaround Professionals/Investment Bankers | |
| Industry/business: | Frequently represent receivers, assignees for benefit of creditors, investment bankers, and turnaround professionals |
| Transaction size: | Ranging from $1M in assets to $100M in assets |
Finance |
|
| Regional Bank | |
| Industry/business: | Financial institution |
| Representation/date: | Bank / 2017 |
| Transaction size: | $7.5M of loans |
| Key outcome: | Borrower defaulted on $7.5M in loans and commenced a Chapter 11 bankruptcy case. Negotiated immediate payments on bank debt, and obtained Bankruptcy Court order that bank was fully secured on all assets, including collateral allegedly not properly perfected. Restructured loans providing for payoff within agreed maturity date and additional guarantees. |
| (International Financial Institution) | |
| Industry/business: | Financial institution that provided wholesale credit facility to retail lender in construction industry |
| Representation/date: | Secured creditor / 2009-2012 |
| Transaction size: | $400M+ credit facility |
| Key outcome: | Had receiver appointed to liquidate collateral and recover fraudulent transfers. |
May 13, 2019
New dollar amounts for exemptions under the Bankruptcy Code took effect on April 1, 2019, and apply to all cases filed on or after that date. Ryan Murphy prepared a table that summarizes these updated Bankruptcy Code amounts and also compares the Bankruptcy Code exemptions with the Minnesota state-law exemptions.
After the Ninth Circuit in In re Taggart set a new and narrow precedent regarding exactly what a creditor must do in order to be subject to civil contempt sanctions for a violation of the discharge injunction, the ball is now with the U.S. Supreme Court to determine what influence that extraordinary opinion will have on other courts.
In a case that may end up before the Supreme Court, the Second Circuit recently analyzed the extraterritorial application of the fraudulent transfer laws found in the Bankruptcy Code on transfers made outside the U.S. between transferors and transferees both located outside of the U.S.
In a recent decision, a gardening supply store was denied bankruptcy protection due to its business model, which targeted marijuana growers in states that have legalized its use.
April 5, 2019
Ryan Murphy and Clint Cutler contributed to the April edition of the Journal of Corporate Renewal, an issue focused on the growing agricultural industry financial crisis.
February 19, 2019
We are currently in or entering a new bust cycle in production agriculture. While producers have generally managed to continue operating, bankruptcy filings and farm foreclosures are on the rise and prior fixes may no longer be available. Dealing with lenders can be a challenge in these circumstances, and it is important for professionals advising producers to follow a few simple rules to effectively negotiate with their clients’ lenders.
This article provides a brief examination of the changes in the Federal Rules of Civil Procedure and the Federal Rules of Bankruptcy Procedure that went into effect on December 1, 2018, and how those changes may impact the bankruptcy practice.
Worldwide debt has grown to nearly $250 trillion, a substantial increase since the Great Recession in 2008. The makeup of the debt held by individuals has changed and the amount of corporate debt has significantly increased. With economic challenges on the horizon, these changes will likely affect the processes individuals and corporations pursue to address debt.
November 26, 2018
Fredrikson & Byron won the 2018 Minnesota Chapter Transaction of the Year award from the Turnaround Management Association, Minnesota Chapter (TMA).
October 10, 2018
The Southern District of Texas’s recent popularity in commercial filings, stemming from a number of factors, makes it a new contender to be one of the busiest commercial bankruptcy districts in the country.
During the nearly three-year pendency of the case, the battles between the Archdiocese of St. Paul and Minneapolis and the committee representing the survivors of sexual abuse have resulted in court decisions on two subjects of broad importance in chapter 11 cases generally.
In a new development to receivership law, the Minnesota Court of Appeals affirmed a receiver’s power to pursue a creditor’s “veil piercing” claims against insiders of the company in receivership, and blocked the creditor from pursuing those same claims after the receivership ended.
September 6, 2018
Fredrikson & Byron won two 2018 national awards from the Turnaround Management Association.
July 26, 2018
Minnesota has expanded the types and value of assets that individuals may protect from creditors.
In the 8th Circuit, income tax debt owed under late filed tax returns could, under certain circumstances, be discharged by individual debtors in their bankruptcy cases.
Payments made to creditors in the 90-days before a bankruptcy filing can be subject to recovery as “preference claims.”
April 17, 2018
Are trademarks “intellectual property” under the Bankruptcy Code? According to a recent decision from the First Circuit Court of Appeals, the answer is “no,” and Section 365(n) of the Code does not offer protection to trademark licensees when the licensor files for chapter 11.
The choice of a chapter 11 operating trustee can provoke a fight. Follow this guide for a smooth path through the process of displacing an interim chapter 11 trustee or challenging an election.
March 26, 2018
Attorney James L. Baillie has been elected to serve a two-year term as vice president of the American College of Bankruptcy.
January 10, 2018
In addition to the normal hurdles debtors face in chapter 11 cases, many energy and farmer debtors must address the safe harbor provisions of 11 U.S.C. § 556, which permit forward contract counterparties to terminate forward contracts immediately after a bankruptcy filing.
November 16, 2017
Fredrikson & Byron won the 2017 Turnaround of the Year Award from the Turnaround Management Association (TMA) for the successful Chapter 11 plan of reorganization of Christ’s Household of Faith, a Christian commune of 500 members based in St. Paul, Minnesota.
October 3, 2017
The impact of Jevic may have a wide ranging impact on how Chapter 11 cases are administered in the future.
The new receivership and assignment for benefit of creditors statutes took effect in 2012.
In one of the most important bankruptcy court decisions of all time, Northern Pipeline Construction Co. v. Marathon Pipe Line Co., the U.S. Supreme Court held that the 1979 Bankruptcy Code was unconstitutional because it lodged too much judicial power in bankruptcy judges who were not given “Article III” status.
September 15, 2016
Fredrikson & Byron and Alliance Management won the 2016 Transaction of the Year Award from the Turnaround Management Association (TMA) in the “Small Company” category for the successful and value-maximizing sale of assets of HEI, Inc. under section 363 of the Bankruptcy Code.
March 23, 2016
On April 19, 2016, Fredrikson & Byron presented a program on the current law governing the duties of officers and directors of insolvent companies.
October 8, 2015
Fredrikson & Byron and Alliance Management received the 2015 Transaction of the Year Award from the Minnesota Chapter of the Turnaround Management Association for the successful and value-maximizing sale of assets of HEI, Inc. under section 363 of the Bankruptcy Code.
September 21, 2015
Eurofins Scientific is a world leader in bio-analytical testing.
