Our firm has had some attention in the press lately, partly because of the growth in bankruptcy cases in Texas; partly for the recent addition of partner Deirdre Carey Brown, who planted our flag in Houston; and partly for our work in the Chesapeake Energy case, in which we represent the official committee of royalty owners.
Here’s a compilation of our recent coverage:
Avalanche of Business Bankruptcies has Arrived in Texas, by Mark Curriden, The Texas Lawbook. “More Texas corporations filed for bankruptcy during the first six months of 2020 than in any period in the state’s history,” reported the legal publication, which reached out to name partner Jeff Prostok for his insights:
Jeff Prostok, a Fort Worth bankruptcy lawyer with the firm Forsey Prostok, said that the bankruptcies already filed have been enormous. The reason many companies are holding off going to court is the lack of funding to exit bankruptcy in a financially health position.
“There is so much uncertainty,” Prostok said. “How do you reorganize or restructure if you don’t know what your revenue stream is going to be for the year ahead. There is no way to project.
“What is a bank going to do with a hotel that specializes in big events?” he continued. “Landlords don’t have a lot of options. They don’t have future tenants standing in line right now to sign new lease agreements.”
The article is behind the Lawbook paywall, but non-subscribers can read it here.
Deirdre Carey Brown, who started with Forshey Prostok as a partner less than a week ago, is opening the Houston office. Brown will continue to represent many of her previous clients, ranging from individual investors to landlords to secured creditors, and her practice has recently focused on the energy, restaurant and construction industries, she told Law360 on Wednesday.
In the past, Brown advised the official committee of equity security holders of oil and gas exploration company Energy XXI Ltd., which filed for Chapter 11 protection in April 2016. Her clients were among the first official committees of equity owners to be appointed through a motion in the Southern District of Texas, she said.
Brown said being able to draw from the depth of experience from other lawyers at Forshey Prostok for backup will greatly benefit her clients.
"They have a similar type of reputation to me where they're pragmatic, but they're not afraid to litigate," she said. "And so it's just going to be good to have a bigger platform."
An official committee of royalty owners, represented by Houston (sic) bankruptcy boutique Forshey & Prostok, has been appointed in Chesapeake Energy Corporation’s Chapter 11 case.
The nine-member group was revealed in court documents by the U.S. Trustee for the U.S. Bankruptcy Courts for the Southern and Western Districts of Texas. While official unsecured creditors’ committees – whose fees are generally paid by a debtor’s estate – are routine in large Chapter 11 cases, an official committee specifically designated for owners of oil and gas royalty interests is an unusual occurrence. (emphasis added)
NOTE: Forshey Prostok is based in Fort Worth, with additional offices in Dallas and Houston.
Forshey Prostok LLP provides extensive experience in all areas of bankruptcy law from its offices in Fort Worth, Dallas and Houston. The firm’s scope of representation includes handling complex business reorganizations, enforcing of creditor’s rights, leading commercial and bankruptcy-related litigation, overseeing creditors’ committees, directing workouts, and closing bankruptcy acquisitions. Forshey Prostok is ranked by the Chambers USA legal guide and received a Tier 1 ranking from Best Law Firms for bankruptcy and creditor/debtor rights. For more information, visit https://forsheyprostok.com/.
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