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.
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.
domestically and upholding the bankruptcy decision on appeal in the Fifth Circuit Court of Appeals.
Mirant Energy (Debtor’s Conflict Counsel-Chapter 11)
Represented one of the largest bankruptcies ever filed in Texas resulting in full recovery for creditors.
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.
Berryman Products, Inc.
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.
Forest Park Medical Center at Fort Worth, LLC
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.
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.
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.
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.
Heartland Automotive Holdings, Inc.
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.
Majestic Liquor Stores, Inc.
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.
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.
Duncan Burch, Inc. (“DBI”)
Forshey Prostok represented DBI as Chapter 11 Debtor’s counsel. Prior to filing bankruptcy, the Texas Comptroller contended that DBI was liable for unpaid taxes in the amount of $3.9 million. DBI disputed the tax liability as well as the constitutional basis for its assessment. Among other things, the tax case addressed the issue of whether a taxpayer must first pay a disputed tax before requesting a judicial review of that assessed tax. This so-called “pay-to-play” requirement would require DBI, as a condition to disputing the $3.9 million in tax assessments, to pay that amount to the State. This provision made it virtually impossible for DBI to challenge the disputed tax. Without any other realistic options, DBI initiated the Chapter 11 bankruptcy case to stop the Comptroller’s collection attempts. In the bankruptcy case, the Firm assisted DBI in defending against the Comptroller’s jurisdictional challenges so that the disputed tax claim could be decided by the Bankruptcy Court. Thereafter, DBI settled the $3.9 million tax claim for $75,000 and dismissed its Chapter 11 bankruptcy case.
American Workers Insurance Services, Inc. and Association Health Care Management, Inc.
Forshey Prostok represented American Workers Insurance Services, Inc. and Association Health Care Management, Inc. as debtors’ counsel. Debtors marketed various insurance and benefits coverages to members of the National Association of Preferred Producers. This case raised substantial issues regarding the interplay of such businesses in Chapter 11 and disputes with claimants relating to such business and the ERISA statute.
Medical Technology, Inc., d/b/a Bledsoe 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.
Cisneros Restaurants
Represented restaurant chain confirming a consensual plan of reorganization retaining equity for its owners.
Lone Star Lubrication Co.
Represented the company by confirming a Chapter 11 reorganization plan involving more than 40 rapid oil change facilities and allowing equity to continue operations.
Bloomfield Nursing Operations, LLC et al.,
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.
Diverse Energy Systems, LLC
Forshey Prostok represented 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 entire time the case was pending.
Wellflex Energy Solutions, LLC
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.
Falcon Steel Company
Successfully represented a steel fabrication company by formulating a consensual plan of reorganization with its secured lender and creditors successfully emerging from bankruptcy.
Frac Specialties
Forshey Prostok served as Debtor’s counsel for Frac Specialists, LLC in a jointly administered Chapter 11 case in the Fort Worth Division of the United States Bankruptcy Court for the Northern District of Texas. Frac Specialists primarily operated 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.
Troxell Company, Inc.
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.
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.
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.
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.
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.
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.
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.
One Source Industrial Holdings, LLC
Forshey Prostok represented 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 involved several 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 assisted 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.
Winnie Community Hospital
Forshey Prostok represented 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. With the Firm’s assistance, the Hospital proposed a plan of reorganization allowing 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 represented Estes, Inc. in its 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 served as Debtor’s counsel for Fossil Creek Group, Ltd., and affiliated entities. Fossil owns significant Real Estate holdings in the DFW Metroplex. Forshey Prostok reorganized the properties and maximized value.
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. 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.
HBT JV, LLC (Honda of Burleson)
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 creditors’ claims and substantial distributions to the Debtor’s equity holders.
Stringer Farms, Inc. / Blake Stringer
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.
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 represented Blessed Are the Children Achievement Academy, Inc., in its Chapter 11 proceeding. Blessed Are the Children operated three daycare centers providing critical childcare to lower income families. Forshey Prostok negotiated a consensual plan for the reorganization of Blessed Are the Children, 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 have occurred.
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.