Committee Representations – There is, perhaps, no party in bankruptcy facing more uncertainty than the various committees that may be formed in a business reorganization. Committee counsel must have the experience to decipher bankruptcy proceedings, the knowledge to understand how the Debtor business works, the diplomacy to juggle competing needs between the diverse interested parties in bankruptcy, and the common sense to recognize opportunity for the committee and its constituents. Forshey Prostok succeeds by consistently creatively and aggressively pursuing opportunities for recovery.
Chesapeake Energy Corporation
Forshey Prostok currently serves as committee counsel for the Official Committee of Royalty Owners which represents approximately 240,000 royalty owners. Chesapeake’s bankruptcy is one of the largest E&P bankruptcies ever filed. The Oklahoma City based company’s bankruptcy is pending in the Southern District of Texas. Liabilities exceed $10 billion. Forshey Prostok defeated Chesapeake’s Motion to Disband the Committee. Royalty Owners are welcome to contact Forshey Prostok if they have questions.
Victory Medical Center Mid-Cities, LP, et al
Forshey Prostok served as co-counsel for the Official Committee of Unsecured Creditors in the Victory Medical Center case which involved a parent company and four specialized surgical hospitals situated throughout the State of Texas. The Victory debtors filed bankruptcy to facilitate an expeditious sale of their assets. As counsel for the Committee, Forshey Prostok assisted 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.
Domistyle Official Unsecured Creditors’ Committee
Forshey Prostok currently represents the Official Committee of Unsecured Creditors in the Chapter 11 bankruptcy case of Domistyle, Inc. pending in the Eastern District of Texas. Prior to filing bankruptcy, Domistyle operated as a leading designer and manufacturer of high-end scented candles, home décor and home fragrance products sold primarily through “big box” national retailers. Early in the bankruptcy case, the Firm assisted the Committee in the negotiation of a Plan Support Agreement with the Debtor and principal lender to ensure that the Committee’s constituent creditors would be provided with favorable Plan treatment. To this end, the Committee is serving as co-proponent of a Joint Plan of Liquidation pending before the Court which incorporates the negotiated terms of the Plan Support Agreement.
Walls Homes, Inc., et al,
Forshey Prostok served as counsel to the Official Committee of Unsecured Creditors of Wall Homes, Inc., et al.
The Bombay Company, et al (Local Counsel for Unsecured Creditors Committee)
Forshey Prostok represented the Official Committee of Unsecured Creditors of The Bombay Company, Inc., et al., one of the largest retail bankruptcy cases ever filed in Texas. The Committe and Debtors confirmed a joint plan of liquidation that resulted in payment of a significant dividend to unsecured creditors.
Pan American General Hospital, L.L.C. (Official Unsecured Creditors Committee)
Forshey Prostok currently represents the Official Committee of Unsecured Creditors in this Chapter 11 case pending in El Paso, Texas. Through the Firm’s effort, the unsecured creditors will become beneficiaries of and will receive distributions from a litigation trust established to pursue various claims and causes of action post-confirmation.
Medical Select Management
Forshey Prostok represented the Official Unsecured Creditors Committee of this independent physician association that provided services to over 1,700 Doctors who treated over 200,000 patients. The Chapter 11 Trustee and the Committee worked closely to insure maximum recovery for the estate’s creditors.
Members of the firm represented the Official Unsecured Creditors’ Committee in the Chapter 11 case with a total debt in excess of $120 million. After selling litigation claims brought by the Committee, a joint plan was confirmed and unsecured creditors obtained a significant recovery.
National Foam Cushion
Members of the firm represented the Official Unsecured Creditors’ Committee in the Chapter 11 case of a carpet pad manufacturer whose facility was destroyed by fire. The firm on behalf of the Committee negotiated and successfully reduced the Texas Natural Resource Conservation Commission’s claim from in excess of ten million dollars to less than one million. The Committee was co-proponent of the Plan of Reorganization confirmed by the Court that to date has provided in excess of 50% recovery to allowed unsecured creditors and recovery is expected to be near 100%.
Members of the firm represented the Official Committee of Unsecured Creditors in the Chapter 9 bankruptcy filed by this Hospital District. Prior to the Committee’s hiring of the firm, the bankruptcy had continued for 11 months without a plan of reorganization being proposed. After the firm began its representation of the Committee, a negotiated plan of reorganization was confirmed, resulting in a 100% recovery to unsecured creditors.
Willbanks Steel, Inc.
Members of the firm represented the Official Unsecured Creditors’ Committee in the case of a local steel company who filed bankruptcy shortly after a failed leveraged buy-out. The Committee reached a significant settlement with the lender and the principals for the benefit of the unsecured trade creditors after alleging a fraudulent transfer resulting from the leveraged buy-out.
Hardcote Technologies, Inc.
Members of the firm 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 being brought against former shareholders of the company and others resulting in a distribution to unsecured creditors in an otherwise insolvent case.
First Mercantile Corporation
Members of the firm represented the Official Unsecured Creditors’ Committee in the Chapter 11 case of a Wichita Falls lending institution. The Committee defeated the Debtor’s proposed Chapter 11 Plan, and submitted the Committee’s Creditor Plan, which was confirmed by the Bankruptcy Court and, ultimately resulted in a substantial distribution to unsecured creditors.
Attorneys in the firm have also represented Unsecured Creditors Committees in Kitty Hawk, Inc., U.S. Metro Lines, and Consul Restaurant Corporation.