Creditor Representations – Forshey Prostok thinks that creditors in a Chapter 11 case deserve a hard-nosed, aggressive approach in order to protect their rights. Secured lenders, vendors and trade creditors, banking institutions, individual investors, and landlords throughout the Dallas/Ft Worth metroplex and across the nation rely on Forshey Prostok to maximize the value to creditors. When a creditor becomes a defendant, during an active reorganization or later in a preference suit, Forshey Prostok has a significant record of success in efficiently disposing of such litigation.
DeVries Family Farm, LLC
Forshey Prostok represented DeVries Family Farm, LLC, the defendant in a preference and fraudulent transfer action pursued by a Chapter 7 trustee seeking in excess of $895,000. The case also involved a number of legal issues pertaining to the nature of the trustee’s interest in the LLC. Forshey Prostok successfully obtained the withdrawal of the reference of the case to district court based, in part, on the Supreme Court’s ruling in Stern v. Marshall. Forshey Prostok also obtained partial summary judgment for the LLC that, as an assignee of the debtor, the Chapter 7 trustee possessed only the debtor’s economic right to receive distributions from the LLC, but could not exercise the debtor’s non-economic rights, including any right to vote on decisions or participate in management of the LLC. Following the entry of partial summary judgment, the case settled Forshey Prostok assisted the LLC in favorably settling the matter on terms that reflected the limitations on the chapter 7 trustee’s rights in relation to the LLC.
PABCO Building Products, LLC
Forshey Prostok is currently representing PABCO Building Products, LLC as the largest secured creditor in several jointly administered Chapter 11 bankruptcy cases as well as a secured creditor in a related individual Chapter 11 case.
Forshey Prostok served as co-counsel for an Ad Hoc group of bondholders with claims exceeding $700 million in the Vitro S.A.B. bankruptcy case pending in the Northern District of Texas. There FP successfully assisted the bondholders in preventing Vitro from enforcing its Mexican concurso plan in the United States, thereby allowing important subsidiary guaranties to be preserved and enforceable domestically. On appeal, FP assisted the bondholders in obtaining a favorable decision from the Fifth Circuit Court of Appeals. The Fifth Circuit decision is expected to have a significant impact on international commercial transactions as well as on future cross-border financing and restructurings.
Western Real Estate Equities (WRE)
Forshey Prostok currently represents Western Real Estate Equities, LLC as a secured creditor in a chapter 11 bankruptcy case pending in the United States Bankruptcy Court for the Northern District of Texas. This representation involves a secured claim of over $32 million, collateralized by mixed-use commercial real estate located in southwest Fort Worth, Texas. At the conclusion of the bankruptcy proceeding, the bankruptcy judge specifically complimented the firm for its effective and zealous advocacy as well as its professionalism.
Jet Works Air Center Management / PlainsCapital Bank
Forshey Prostok represents the senior lender, PlainsCapital Bank, in the Chapter 11 bankruptcy case of Jet Works Air Center Management. Jet Works operates a full-service aircraft maintenance and repair facility at the Denton, Texas airport. The Firm’s client holds prepetition secured claims of approximately $ million and also serves as Jet Work’s DIP lender for chapter 11 operations. The firm is currently assisting the debtor with a sale of substantially all of its assets through a competitive bid process designed to maximize the return for its lender client.
ForsheyProstok represented the bank to make a Section 1111(b) election and to ultimately negotiate a plan based on that election.
Seattle City Employees’ Retirement System
Forshey Prostok represents Seattle City Employees’ Retirement System (“SCERS”), a defined benefit plan founded in 1929 with over 15,000 members. The firm’s representation involves advising SCERS of its rights as a secured creditor in connection with intellectual property owned by Platinum Intellectual Property, L.P., (“PIP”) which filed bankruptcy in February 2009. With the firm’s assistance, SCERS has taken steps to foreclose on the intellectual property, market the intellectual property for sale, and ensure that patent rights are preserved in order to maximize the return to SCERS’ participants on account of SCERS’ investment in PIP. Forshey Prostok obtained a default judgment to foreclose in 2010.
Gunn Oil Group
Forshey Prostok represented a group of creditors in the chapter 11 bankruptcy case of Crusader Energy Group, Inc. and its affiliates. Prior to the bankruptcy, the creditors sold to Crusader a 75% working interest in oil and gas leases covering a significant amount of acreage in four Texas counties. The creditors asserted claims against Crusader in the bankruptcy case of approximately $10 million based on the pre-bankruptcy transaction between the parties. Through the Firm’s innovative use of Texas law on equitable vendor liens, the creditors were able to reacquire the 75% working interest in the leases from Crusader in exchange for a minimal cash payment and cancellation of the debt owed by Crusader to the creditors, which reacquisition was approved by the Bankruptcy Court during Crusader’s bankruptcy case.
Quicksilver Resources, Inc.
Forshey Prostok, represented the creditor, Quicksilver in Eagle Drilling, LLC’s bankruptcy proceeding in the United States Bankruptcy Court of Oklahoma, Western District.
Forshey Prostok represented ANOVO, SA, a company based in France and the United Kingdom in connection with a substantial commercial lease in Texas, and also in connection with the bankruptcy of one of its United States subsidiaries. Our representation resulted in a negotiated settlement of claims in excess of $1,000,000.
Renfro Foods, Inc.
Forshey Prostok, bankruptcy counsel, represented Renfro Foods, Inc. as the largest unsecured creditor in a Chapter 11 case pending in the United States Bankruptcy Court in the Western District of Texas. Renfro Foods, Inc., family owned, is a Texas-based products manufacturer, specializing in Southwestern condiments, salsas and other specialty condiments.
Prostok has also successfully represented additional Creditors in such as:
- Lost Creek Cattle Company
- Senior Living