Debtor Representations

Debtor Representations – Forshey Prostok has the capacity and flexibility to handle Chapter 11 reorganizations ranging from the most complex Fortune 500 company to the simplest “Mom and Pop shop”.  Regardless of the size or industry, Forshey Prostok understands that every company has its own unique needs for long-term viability. Forshey Prostok is positioned to understand these issues, and creatively and effectively meet these needs during reorganization.

Forshey Prostok has significant experience representing Debtors in a wide variety of industries, ranging from oil and gas to healthcare. With the recent plunge in oil prices, many in the oil and gas industry are battling decreasing demand for their goods and services and are turning to Forshey Prostok for creative solutions.

Forest Park Medical Center at Fort Worth, LLC

Forshey Prostok represents the Medical Center in its Chapter 11 case.  The Medical Center’s gross income for 2015 was approximately $150 million dollars. Forshey Prostok is assisting the Debtor Medical Center and CRO in devising a manner to sell the Medical Center as an operating entity so as to preserve its value as well as the jobs of its employees.

Diverse Energy Systems, LLC

Forshey Prostok represents this oilfield manufacturing company in a liquidating Chapter 11 case.  Forshey Prostok assisted the CRO in a sale of substantially all of the Company’s assets.  This case was made extremely challenging by the extremely depressed nature of the oilfield service industry during the entrie time the case was pending.

Frac Specialist, LLC

Forshey Prostok presently serves as Debtor’s counsel for Frac Specialists, LLC in a jointly administered Chapter 11 case pending in the Fort Worth Division of the United States Bankruptcy Court for the Northern District of Texas.  Frac Specialists primarily operates as a leading oilfield service provider, with over $200 million in revenue, serving the oil and gas exploration and production industry in the Permian basin, the largest oil producing basin in the United States.

One Source Industrial Holdings, LLC

Forshey Prostok represents the One Source debtors, which are part of a corporate family that provides industrial services and rental equipment to businesses in the oil and gas, refining, manufacturing, pipeline, shipping, and construction industries.  The debtors’ jointly-administered bankruptcy cases involve a number of issues stemming from cash flow problems precipitated, in part, by the terms of the debtors’ financing agreements and the precipitous drop in oil prices and its negative impact on oil and gas and related business activity. Forshey Prostok is assisting the debtors in all aspects of their chapter 11 case, including successfully negotiating agreed orders for adequate protection with the debtors’ secured lenders and defeating a motion filed by the United States Trustee seeking the appointment of a chapter 11 trustee.

Falcon Steel Company

Forshey Prostok recently obtained the successful confirmation of a Chapter 11 plan for Falcon Steel Company, which has allowed the company to continue regular business operations post-bankruptcy with its full 260-employee workforce intact, and will allow the company to pay all creditor claims in full and maintain its entire equity structure. Founded in 1963, Falcon Steel has a rich history in the DFW area as a designer and fabricator of steel structures and is the only American-owned and based manufacturer of steel lattice towers for electrical transmission lines. During the bankruptcy case, the Firm assisted Falcon Steel in stabilizing operations, realigning its management team, and restructuring its indebtedness, thereby enabling Falcon Steel to emerge from Chapter 11 as a stronger, more viable company with a promising financial future.

Texas Rangers Baseball Club

Forshey Prostok, acting as conflicts counsel, represented the Texas Rangers Baseball Partners in a Chapter 11 case pending in Fort Worth, Texas. Forshey Prostok was actively involved in facilitating an auction for the Major League Baseball Team and confirming a Plan of Reorganization. The resulting auction and confirmation increased value for creditors and equity by over $100M. The representation is one of the most unique and high profile bankruptcies ever filed in Texas.

Mirant Corporation

The firm acted as special conflict counsel and then bankruptcy
counsel for Mirant Corporation, the largest bankruptcy filing in Texas history. FP assisted in confirming and implementing a successful Plan of Reorganization that completely satisfied creditors claims.

Winnie Community Hospital

Forshey Prostok currently represents Winnie Community Hospital and an affiliate entity in Chapter 11 proceedings pending in Fort Worth, Texas. The Winnie Hospital operates as a critical access hospital and rural healthcare clinic in a medically underserved four-county area in Southeast Texas. The Hospital was significantly damaged by Hurricanes Ike and Katrina and is still feeling the economic impact of those two storms. With the Firm’s assistance, the Hospital has recently proposed a plan of reorganization designed to allow the Hospital to emerge from bankruptcy with its operations intact so that the Hospital may continue to provide crucial healthcare services to the Southeast Texas community.

Moore Sorrento, LLC

Forshey Prostok served as Debtor’s counsel for Moore Sorrento, LLC in connection with its reorganization efforts under Chapter 11, in which Moore Sorrento’s Plan of Reorganization was successfully confirmed.

Estes, Inc.

Forshey Prostok represents Estes, Inc. in its current liquidation. Founded in 1957, Estes is a 50 year old Texas company which distributes crop protection chemicals, specialty chemicals, seed and fertilizer and provides customer solutions for the agriculture, industrial vegetation, aquatics, turf, ornamental and urban pest management markets.

Fossil Creek Group, Ltd.

Forshey Prostok serves as Debtor’s counsel for Fossil Creek Group, Ltd., and affiliated entities. Fossil owns significant Real Estate holdings in the DFW Metroplex. Forshey Prostok is working towards reorganizing the properties in an effort to maximize value.

Majestic Liquor Stores, Inc.

Forshey Prostok served as Debtor’s counsel for Majestic Liquor and affiliated entities. Majestic Liquor operated forty-six retail stores and three wholesale locations with gross sales in excess of $150,000,000. Forshey Prostok engaged actively in lease rejections of unprofitable store leases while allowing the chain to increase revenues. Majestic Liquor’s Plan of Reorganization was successfully confirmed December 2010. The Plan provided for a post-confirmation sale of substantially all of Majestic’s assets to Centennial Acquisition, LLC. This transaction has been fully consummated, closed and funded.

MC Asset Recovery (MCAR)

Forshey Prostok successfully represented the Plaintiff, MC Asset Recovery, in an appeal to the United States Fifth Circuit Court of Appeals. Forshey Prostok successfully argued that Defendants waived their right to arbitration. On August 2, 2010, MC Asset Recovery was affirmed in the following published opinion: MC Asset Recovery LLC v. Castex Energy, Inc. (In re Mirant Corp.), 613 F.3d 584 (5th Cir. 2010)

Cisneros Restaurants

Forshey Prostok served as Debtor’s Counsel. A consensual plan of reorganization was confirmed in May of 2010.

Movie Gallery, Inc.

Forshey Prostok was retained by the Board of Directors of Movie Gallery, Inc. to represent its interest in the bankruptcy filed in the Eastern District of Virginia. As of the commencement of the bankruptcy, the Debtors were one of the largest North American home entertainment specialty retailers, and the Debtors operated approximately 2,600 retail stores located throughout North America. In 2009, annual revenues of the Debtors exceeded $1. billion.

TXP Corporation

The firm has successfully reorganized TXP Corporation eliminating over 20 million dollars of debt while allowing the company to capitalize on its significant business relationships. The Debtor is an original design manufacturer (ODM) for the communications industry.

Global Group, Inc.

The firm confirmed a Chapter 11 Plan of Reorganization restructuring existing bank and unsecured debt. The successful Plan allowed the company to move forward as one of the largest and premier printing companies in the Metroplex.

Heartland Automotive Holdings, Inc. et al

Forshey Prostok, as co-counsel for the Debtor successfully reorganized its business affairs. The Debtors, headquartered in Omaha, NE, are the largest franchisees of Jiffy Lube International, Inc. in the United States. The Debtors operate in excess of 400 quick-oil change stores in 20 states across the Eastern, Midwestern and Western United States. Their broad range of products and services provide customers with a convenient way to perform preventative maintenance and fluid replacement services on their vehicles. On January 16, 2009, Heartland confirmed a Plan of Reorganization providing 100% recovery to creditors.

True Star Barnett, LLC; Trinity Barnett LLC

The client has successfully completed a sale of its oil and gas assets in the Barnett Shale, thus creating an opportunity for a dividend to unsecured creditors.

Blessed Are The Children Achievement Academy, Inc.

Forshey Prostok represents Blessed Are the Children Achievement Academy, Inc., in its Chapter 11 proceeding. Blessed Are the Children operates three daycare centers providing critical childcare to lower income families. Forshey Prostok has been instrumental in negotiating what is expected to be a consensual plan for the reorganization of Blessed Are the Children, which is expected to be confirmed in the fall of 2008. Part of the Debtor’s reorganization includes the commencement of operations of one of the daycare centers as an overnight shelter for children placed with Child Protective Services. Without the Debtor’s reorganization efforts, the opening of this night shelter would not occur.

Medical Technology, Inc., d/b/a Bledsore Brace Systems

Forshey Prostok successfully confirmed a plan of reorganization for Medical Technology, Inc., d/b/a Bledsoe Brace Systems, with assets of approximately $10 million. In achieving confirmation of the plan of reorganization, Forshey Prostok successfully negotiated with a judgment creditor holding a claim in excess of $6 million against the debtor.

Mirant Bowline, LLC; Mirant Hudson Valley Gas Corp.; Mirant New York, Inc.

Forshey Prostok, as lead counsel for Mirant NY, Mirant Bowline and Hudson Valley Gas, successfully confirmed a plan of reorganization for the above-named debtors with assets in excess of $200 million. These debtors were excluded from the plan of reorganization confirmed in the Mirant Corporation case in December 2005 due to outstanding tax and environmental issues. Forshey Prostok successful negotiated a settlement of all the tax issues in November 2006. The plan of reorganization provided the same treatment to creditors of the three emerging entities as to similarly-situated creditors who received confirmation under the December 2005 plan—payment satisfying the claims of all creditors.

Mirant Lovett, LLC

On September 19, 2007, Forshey Prostok successfully confirmed a full-pay plan of reorganization for Mirant Lovett, a Mirant power generation subsidiary with scheduled assets exceeding $200 million. Prior to confirmation, Forshey Prostok was instrumental in bringing an 11-year property tax dispute regarding Mirant Lovett and Mirant Bowline to a favorable conclusion, which many had believed would be politically impossible short of costly and protracted litigation in multiple state and federal forums. Forshey Prostok additionally assisted Mirant Lovett in meeting various environmental and regulatory responsibilities which proved to be critical to Mirant Lovett’s emergence from bankruptcy.

Mirant NY Gen, LLC

Forshey Prostok filed and confirmed a separate plan of reorganization for Mirant subsidiary Mirant NY-Gen, which provided for the sale of the company to a third party purchaser. Forshey Prostok strategically structured the sale of the Mirant NY-Gen equity interests to allow various stages of bidding (stalking horse bid, additional qualifying bids and auction), and in this manner raised sufficient funds to pay all prepetition creditor claims in full. During the course of the Mirant NY-Gen case, Forshey Prostok addressed numerous regulatory challenges relating to the various Mirant NY-Gen generation assets, from remediation of a dam sinkhole requiring special DIP financing to a court-authorized compromise relating to water quality standards for dissolved oxygen.

Mrs. Baird’s Bakeries

Members of the firm successfully represented Mrs. Baird’s, the largest privately owned bakery in the United States at the time, in its strategic Chapter 11 bankruptcy case in Fort Worth, Texas. After intense negotiations and litigation, members of the firm settled a multi-million dollar antitrust class action suit through the bankruptcy and proposed a plan of reorganization for Mrs. Baird’s which was accepted by every major creditor group and subsequently approved by the Bankruptcy Court in record time. Such a plan paid all allowed claims in full.

Aerobotics Industries, Inc.

Members of the firm successfully reorganized this aerospace company in less than 90 days from filing. Aerobotics provides engineering design, tooling, prototyping and production machining services to the aerospace industry. The company has provided services in connection with the F-16 and F-22 fighter jets, and was named a part of the Joint Strike Fighter Program. Members of the firm formulated and achieved a plan of reorganization for the company, balancing the interests of all constituencies. The company is now known as Westpark Industries, Inc.

Berryman Products, Inc.

Members of the firm successfully formulated and confirmed a plan of reorganization for this 85 year old automotive chemical enhancement distributor after reversing a multi-million dollar jury verdict in California and successfully defeating numerous objections and appeals by a recalcitrant creditor. Such a plan also ultimately paid all allowed claims in full.

General Electrodynamics Corp.

The firm successfully obtained confirmation of a plan of reorganization for this local business. This allowed the company to survive an unexpected million dollar plus jury verdict. Ultimately, Forshey Prostok was able to negotiate an agreement with the judgment holder to allow for confirmation of a plan and the survival of the business.

Lone Star Lubrication Co.

Members of the firm successfully represented the company by confirming a Chapter 11 reorganization plan. The Plan calls for the sale and continuation of more than 40 rapid oil change facilities, allowing equity to continue operation while providing a return to creditors.

Mid-American Indemnity Insurance Company

Members of the firm represented the Foreign Representative of a Fort Worth based Cayman Islands insurance company in the first foreign proceeding under Section 304 before the Fort Worth Bankruptcy Court. As counsel for the Foreign Representative, the firm obtained approval for a scheme of arrangement by both the Bankruptcy Court and the Grand Court of the Cayman Island and brought a successful multi-million dollar fraudulent transaction action against individuals and corporations.

Western Fidelity Marketing, Inc.

Members of the firm successfully represented the former parent and marketing company of a life and health insurance provider through its Chapter 11 reorganization in Fort Worth, Texas. Through its bankruptcy case, Western Fidelity was able to reach favorable resolution of two multi-million dollar lawsuits pending against it in the State Courts of California and Texas. Again, the plan paid all allowed claims in full.

ForsheyProstok has successfully represented additional Debtors such as:

Boys Day Out
Control Components Corporation
Delaney Vineyards, Inc.
Express Telephone
Five Star Foods, Inc.
Game Systems, Inc.
Giddings Apartments, Ltd.
Hispanic Television
JRL Properties International
Larry’s Standard Brand Shoes, Inc.
Lucky Lady Oil Co.
Mart Apartments, Ltd.
Med-Sport Physical Therapy
Parnell Chrysler, Plymouth, Jeep, Eagle, Inc.
Ranger Apartments, Ltd.
The Claridge Apartments, Ltd.
The Chancellor Apartments, Ltd.
The Trails, Ltd.

Numerous Chapter 11 liquidating debtors including Aladdin Beauty Schools, Inc., Vogue Beauty Schools, Inc., and K.L. Karnes Construction, Inc.

Attorneys in the firm have also represented the Debtors such as Lone Star Steel, Greyhound Lines, Braun’s Fashions, Lillie Rubin’s Fashions, Allied Physicians, and Sunrise Energy