Eventide Credit Acquisitions, LLC
Represents Eventide Credit Acquisitions, LLC (ECA) as debtor’s counsel. This case involves issues of nationwide significance. Specifically, prior to the petition date, ECA was sued in several class action lawsuits nationwide relating to ECA’s sale of a loan servicing business to the Lac Vieux Desert Band of Lake Superior Chippewa Indians (Tribe). The plaintiffs in the class action lawsuits are consumer borrowers who obtained short term, high interest rate loans from Big Picture Loans, an economic arm of the Tribe. The consumer borrowers assert claims exceeding $100M. The primary issue to be determined in the bankruptcy case is whether tribal sovereignty and the strong federal policy favoring tribal economic development and self-sufficiency pre-empt state usury law with respect to the tribal loans.
In addition to the claims asserted by the consumer borrowers of the LVD, ECA also has a claim against Big Picture Loans in the amount of $26.85M based on Big Picture Loans’ default under the terms of a note and loan security agreement between ECA, as lender, and Big Picture Loans, as borrower. This case is pending.
Texas Rangers Baseball Club (Co-Counsel-Chapter 11)
Represented the Debtor by participating in facilitating an auction for the Major League baseball team and confirming a plan of reorganization for the Rangers making it one of the most unique and high-profile bankruptcies ever filed in Texas.
Vitro SAB (Co-Counsel for an Ad Hoc Group of Bondholders)
Represented group of Bondholders with claims exceeding $700 million in the Vitro S.A.B. bankruptcy case pending in the Northern District of Texas. Successfully assisted the bondholders in preventing Vitro from enforcing its Mexican concurso plan in the United States, allowing subsidiary guaranties to be preserved and enforceable domestically and upholding the bankruptcy decision on appeal in the Fifth Circuit Court of Appeals.
Chesapeake Energy Corporation
Represented the Official Royalty Committee in one of the first times in recent complex bankruptcy cases a statutory committee has been appointed for Royalty Interest Holders. Successfully defended motion to disband the committee and then represented the interests of over 237,000 Royalty Interest Holders located all over the United States subject to different state law jurisdictions. Negotiated for much better protections in the Debtor’s Plan for the Royalty Interest Holders.
Tuesday Morning Corporation
Represented Invictus Global Management, LLC in the Tuesday Morning Corporation chapter 11 bankruptcy cases filed in February 2023. Tuesday Morning was a discount retailer with national presence and at the time of its 2023 bankruptcy filing, it had 470 stores over 25 states. Just before Tuesday Morning’s bankruptcy filing, Invictus provided a bridge loan to Tuesday Morning that allowed Tuesday Morning to avoid immediate liquidation as a result of pressure from its secured lenders and to seek bankruptcy protection. Subsequent to the bankruptcy filing, Invictus provided debtor-in-possession financing to facilitate an opportunity for Tuesday Morning to conduct an auction for the sale of its business as a going concern and save jobs for employees. Invictus participated in the auction as a bidder, having made a bid for the going concern business to continue operations and retain employees. Ultimately Tuesday Morning made the decision to liquidate its assets rather than accepting Invictus’ bid to acquire the business as a going concern. Forshey Prostok was brought in after previous counsel was terminated and was instrumental in structuring a multi-party settlement with the Debtor, sub debt holders, and the Unsecured Creditors Committee.
Mirant Lovett, LLC and Mirant NY-Gen LLC. (Debtors’ Counsel)
Successfully confirmed full-pay plan of reorganization for Mirant Lovett, a Mirant Corporation power generation subsidiary, and Mirant NY-Gen, LLC with scheduled assets exceeding $200 million.
Chestnut Ridge Associates LLC
Debtor’s counsel for Chestnut Ridge Associates LLC (“Chestnut”) in its chapter 11 case filed in February 2023 in the United States Bankruptcy Court for the Southern District of Texas. Chestnut is the owner of a Class A shopping center known as the Shoppes at Kingsgate (the “Center”) located in Kingwood, Texas. Chestnut’s mortgage note came due in November 2022 and the mortgage lender proceeded with foreclosure. Chestnut filed the chapter 11 case to protect the substantial equity in the Center and on August 8, 2023, confirmed a Plan of Reorganization resulting in a sale of Chestnut, full payment to creditors, and significant return to equity.
Tri-County Electric Corporation, Inc.
Represented Tri-County, a member of a large power cooperative, Brazos Electric Power Cooperative, Inc. Brazos filed bankruptcy in March of 2021in the Southern District because of the losses experienced by storm Uri in February 2021. This case has huge significance to public power in Texas and the over 100,000 meters served by Tri-County. Brazos emerged as a scaled down company allowing Tri-County more flexibility and room for growth in the future. Forshey Prostok played a critical role requiring replacement of Brazos management and formulating a multi-party settlement, including an agreement with ERCOT involving their multibillion-dollar claim. The settlement allowed Brazos to confirm its consensual bankruptcy plan in December 2022.
Elevate Credit, Inc.
Represented Elevate Credit, Inc. as defense counsel in a fraudulent transfer action asserted against it by a litigation trust created pursuant to the bankruptcy plan of Think Finance, LLC and its affiliated debtors. The avoidance action arose out of the spin-off of Elevate Credit, Inc. from Think Finance, Inc. in 2014, in the Northern District of Texas, Dallas Division, and successfully resolved the fraudulent transfer action in which the litigation trust sought to recover in excess of $246 million.
The Bombay Company, et al. (Local Counsel for Official Unsecured Creditors’ Committee)
Represented the Official Unsecured Creditors’ Committee of The Bombay Company, Inc., et al., one of the largest retail bankruptcy cases ever filed in Texas. The Committee and Debtors confirmed a joint plan of liquidation that resulted in payment of a significant dividend to unsecured creditors.
Cisneros Restaurants (Debtor’s Counsel-Chapter 11)
Represented restaurant chain confirming a consensual plan of reorganization retaining equity for its owners.
Mirant Energy (Debtor’s Conflict Counsel-Chapter 11)
Represented one of the largest bankruptcies ever filed in Texas resulting in full recovery for creditors.
Berryman Products, Inc. (Debtor’s Counsel-Chapter 11)
Successfully formulated and confirmed a plan of reorganization for 107-year-old automotive chemical enhancement distributor after reversing a multimillion-dollar jury verdict in California and successfully defeating numerous objections and appeals by a recalcitrant creditor and paying all claims in full and retaining equity for shareholders.
Lone Star Lubrication Co. (Debtor’s Counsel-Chapter 11)
Represented the company by confirming a Chapter 11 reorganization plan involving more than 40 rapid oil change facilities and allowing equity to continue operations.
Pentwater Capital Management, LLC (Secured Creditor Representation)
Represented a hedge fund with $3.6 billion dollars under management that was the primary secured lender in the American Standard Energy bankruptcy cases, filed in the Western District of Texas. Assisted with a plan of reorganization which allowed Pentwater to acquire 100% of equity in the Debtors.
First Baldwin Bancshares, Inc. (Purchaser of Assets)
Successfully represented The First Bank in its acquisition of The First National Bank of Baldwin in a contested §363 sale in the Mobile, Alabama Bankruptcy Court.
Bloomfield Nursing Operations, LLC et al., (Debtors’ Counsel – Chapter 11)
Forshey Prostok represented eight New Mexico nursing homes in a Fort Worth, Texas bankruptcy proceeding. FP sought alternatives to litigation being pursued against the entities while attempting to maximize recovery and limit costs for all parties. Forshey Prostok’s efforts resolved the matters for a fraction of the cost of defending the lawsuits.
American Mud Works Partners, Ltd.
Represented AMWP, a new business in the oil and gas industry focused on waste disposal that operates a drilling fluids processing plant in Woodsfield, Ohio, successfully confirming its Subchapter V plan of reorganization proceeding in the Northern District of Texas.
Sunfinity Renewable Energy, LLC
Represented Sunfinity Renewable Energy, LLC (Sunfinity) in an out of court restructure of its business of selling, designing, financing, and installing distributed solar photovoltaic systems for single-family homes, commercial operations, and agricultural settings. Over 25M in outstanding claims were resolved, out of court, avoiding the necessity of a Chapter 11 filing and preserving the business. The resolution involved multiple parties and claims.
Matrix Warranty Solutions, Inc. and Matrix Financial Services, LLC
Forshey Prostok, LLP represents Matrix Warranty and Matrix Financial in two separate Chapter 7 bankruptcy cases. The Matrix companies provided thousands of consumers with aftermarket service plans for vehicles, electronics, and home appliances. Prior to filing bankruptcy, the Matrix entities were involved in protracted litigation. Matrix denies liability but ultimately determined that the cost and circumstances of litigation made continued operations unfeasible. In the bankruptcy cases, Forshey Prostok hopes to work with principal parties to resolve a certified class-action claim.
Shannon Gracey (Workout Counsel)
Represented a storied Fort Worth, Texas based law firm with an 80-year history with offices in Fort Worth, Dallas, Houston, Austin and Arlington, Texas, spearheaded efforts to avoid a bankruptcy filing and negotiated resolutions with all of Shannon Gracey’s creditors.
Forest Park Medical Center at Fort Worth, LLC (Debtor’s Counsel-Chapter 11)
Represented a hospital with revenue of more than $150 million in 2015. Confirmed its Chapter 11 plan by assisting in the sale of the real estate for over $120 million while carving out a significant recovery for creditors and settling all claims against the investors of the hospital.
Wellflex Energy Solutions, LLC (Debtor’s Counsel -Chapter 11)
Represented a manufacturer of modular wellhead products and companies engaged in the oil and gas industry by assisting Wellflex in the sale of substantially all its assets to insiders.
Mrs. Baird’s Bakeries (Debtor’s Counsel-Chapter 11)
Represented Mrs. Baird’s, the largest privately-owned bakery in the United States at the time, in its strategic Chapter 11 bankruptcy case. Settled a multimillion-dollar antitrust class action suit through the bankruptcy and confirmed a plan of reorganization in record time paying claims in full.
Heartland Automotive Holdings, Inc. (Debtor’s Co-Counsel-Chapter 11)
Represented largest Jiffy Lube Franchisor in the U.S. with approximately $396 million in debt by confirming a Chapter 11 plan with 100% recovery to creditors.
Victory Medical Center Mid-Cities, LP et al. (Official Unsecured Creditors’ Committee – Chapter 11)
Represented the Official Unsecured Creditors’ Committee by assisting in the sale of two of the Debtor’s hospitals, the wind down and closure of two of the Debtor’s-hospitals, and the negotiation of a consensual plan of reorganization.
Falcon Steel Company (Debtor’s Counsel-Chapter 11)
Successfully represented a steel fabrication company by formulating a consensual plan of reorganization with its secured lender and creditors successfully emerging from bankruptcy.
Majestic Liquor Stores, Inc. (Debtor’s Counsel-Chapter 11)
Represented operator of 46 retail stores and three wholesale locations with gross sales of more than $150 million by confirming a plan of reorganization allowing for the sale of substantially all its assets and a significant recovery to creditors.
Lion Star Nacogdoches Hospital, LLC (Nacogdoches Memorial Hospital)
The Firm represented Lion Star Nacogdoches Hospital, LLP in its Chapter 11 bankruptcy case pending in Fort Worth, Texas. The Debtor is the owner and operator of the Nacogdoches Memorial Hospital in Nacogdoches, Texas. The Hospital has a 90-year history serving the East Texas communities in and around Nacogdoches County. The Hospital is the only Level III Trauma Center in Deep East Texas and employs more than 600 health care providers and support staff.
In the bankruptcy case, the Firm successfully obtained approval of debtor-in-possession financing and other critical “first-day” matters on an emergency basis, enabling the Hospital to continue providing crucial healthcare services during the Chapter 11 case. The Firm assisted with the sale to the local Hospital District allowing the Hospital to continue serving the healthcare needs of the community going forward.
FWT, Inc. (Official Unsecured Creditors’ Committee – Chapter 11)
Represented the Official Unsecured Creditors’ Committee in the Chapter 11 case with total debt of more than $120 million. After settling litigation claims brought by the Committee, a joint plan was confirmed and unsecured creditors obtained a significant recovery.
Hardcote Technologies, Inc. (Official Unsecured Creditors’ Committee-Chapter 11)
Represented the Official Unsecured Creditors’ Committee and later the Chapter 7 Trustee and played a key role in the Bankruptcy Court’s approval of certain fraudulent transfer actions brought against former shareholders of the company and others resulting in a distribution to unsecured creditors in an otherwise insolvent case.
Frac Specialties (Debtor’s Counsel-Chapter 11)
Represented a major fracking company in the Permian with over 200 million in revenue.
Hi-Way Equipment Company (Purchaser of Assets)
Represented Associated Supply Company, Inc. in its §363 purchase of assets valued in excess of $50M in the Debtors’ bankruptcies.
Josh Terry and Acis Capital Management, L.P. and Acis Capital Management GP, LLC (collectively Acis) –
Represented Robin Phelan, Trustee in the Acis Capital Management, L.P. and Acis Capital Management GP, LLC (collectively Acis), a Dallas-based Securities and Exchange Commission (SEC)-registered investment advisor and collateralized loan obligation (CLO) manager with approximately $2 billion in assets under management. The United States Bankruptcy Court in Dallas confirmed a Chapter 11 restructuring plan which became effective on February 15, 2019. Since confirmation, Josh Terry, equity owner of the Reorganized Debtor hired FP to defend and pursue litigation.
Troxell Company, Inc. (Debtor’s Counsel-Chapter 11)
Chapter 11 counsel for respected manufacturer of tankers and trailers for use in hydraulic fracking operations. The court approved the sale of substantially all the assets to the MAC Trailer Manufacturing corporate family less than two weeks after the case was filed.
Fitco Fitness Equipment, LLC
Forshey Prostok represented Fitco Fitness Equipment, LLC (Fitco) after its lender aggressively sought to foreclose on its operations. Fitco was a full-service fitness equipment distributor for commercial and residential purchase, with twenty-one retail locations across Texas. Fitco was adversely impacted by COVID and its aftermath and Forshey Prostok was instrumental in orderly liquidating the stores and its inventory, and finding a buyer for the locations, preserving jobs, and maximizing recoveries for creditors.
Horizon General Contractors, Inc.
Represented Horizon General Contractors, Inc. in connection with a preference defense matter in re Sun Steaks, LLC., pending in Florida. The Subchapter V Trustee sought to recover approximately $250,000 from Horizon in alleged preferential transfers. F&P assisted Horizon with asserting a vigorous ordinary course defense that, after the Court granted a partial summary judgment in favor of Horizon, resulted in a favorable settlement.
Flexible Funding, Ltd. Liability Co. and Instapay Flexible, LLC
Flexible and Instapay were privately held asset-based lending and factoring companies, primarily focused on the transportation and staffing industries. Immediately after filing the two Chapter 11 bankruptcy cases, Forshey Prostok sought the expedited auction and sale of the Debtors’ portfolio assets. After two successful competitive auctions, the Debtors sold the portfolio assets – at a premium – for more than $85 million. The expedited relief allowed the Debtors to close the two asset sales within the first seven weeks of the Debtors’ bankruptcy cases, thereby preserving the portfolio value of the assets and permitting the Debtors to retire all their senior secured debt. Following the sales, Forshey Prostok successfully confirmed a Joint Plan of Liquidation that provides for the Debtors’ efficient liquidation of remaining assets to maximize distribution to creditors.
Forshey Prostok continues to represent the liquidating debtors and Plan Administrator for post-confirmation matters.
NGV Global Group, Inc., et al.
Represented NGV and its affiliated debtors in a jointly administered Chapter 11 “Mega Case.” At the time of filing bankruptcy, the NGV Debtors were among the largest privately held natural gas logistics companies in the United States. The companies designed and manufactured natural gas engines and fueling systems and converted commercial vehicles to CNG engines for application in their own logistics business and for sale to third parties. In the Chapter 11, the Firm assisted the Debtors in systematically downsizing the businesses and, ultimately, consensually converting their cases to Chapter 7.
Jack County Hospital District d/b/a Faith Community Health System
Forshey Prostok represented Jack County Hospital District (JCHD) as debtor’s counsel in its Chapter 9 bankruptcy case. The Hospital operates the Faith Community Health System in Jack County, Texas and the Faith Community Hospital in Jacksboro, Texas. The Debtor was organized under the Texas Constitution and Chapter 1079 of the Texas Special District Local Laws Code. As a municipality, the Hospital was required to file under Chapter 9 of the Bankruptcy Code.
Forshey Prostok team assisted the Hospital with back-to-back Chapter 9 cases to allow the Hospital to take full advantage of pandemic-related financial relief available through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The Hospital voluntarily dismissed its first Chapter 9 case so that it could apply for a Paycheck Protection Program (PPP) loan that was not available to bankruptcy debtors. This allowed the Hospital to receive desperately needed funds during the most challenging period of the pandemic and permitted the Hospital to file its second Chapter 9 case with the financial wherewithal to successfully reorganize.
Ultimately, Forshey Prostok assisted the Hospital confirm a Plan of Adjustment providing for a restructuring of roughly $92 million in debt, thereby allowing the Hospital to continue delivering high-quality healthcare services to an underserved region.
LWO Acquisitions Company, d/b/a Circuitronics, Inc.
Represented Circuitronics, a provider of specialized printed circuit board assembly and related electronic manufacturing services, in its Chapter 11 proceeding in the Northern District of Texas, successfully restructuring the Company confirming the Chapter 11 Plan.
Hydroscience Technologies, Inc. and Solid Seismic, L.L.C. (Debtors’ Counsel-Chapter 11)
Represented Debtors that design and manufacture deep water seismic instrumentation for offshore oil and gas seismic surveys. Resolved many multimillion-dollar claims against the companies by confirming a Plan of Reorganization selling substantially all assets and resulting in a large recovery for unsecured creditors.
HBT JV, LLC (Honda of Burleson) (Debtor’s Counsel-Chapter 11)
Represented a Honda Dealership with annual gross income of about $100 million. The bankruptcy case was filed to overcome a litigation stalemate between the company’s equity holders and successfully obtained approval to sell substantially all the Debtor’s assets allowing for the payment in full of all creditor claims and substantial distributions to the Debtor’s equity holders.
Stringer Farms, Inc. / Blake Stringer (Debtor’s Counsel-Chapter 11)
Represented Debtors with extensive farming operations on over 6,000 acres of farmland in Moore County, Texas with value exceeding $20M. Assisted debtors in obtaining debtor-in-possession financing and negotiated consensual plan of reorganization saving the farm.