Areas of Practice
| Secured Creditor Representation |
| Debtor Representation |
| Business Acquisitions |
| Bankruptcy Litigation |
| Unsecured Creditor Representation |
Secured Creditor Representation
Our creditor clients include major financial, manufacturing, utility, real estate and construction firms, including Vulcan Materials, AmSouth Bank, HealthSouth, EBSCO, Wachovia Bank, First Commercial Bank, Synovus, Sloss Industries, WestPoint Stevens, Russell Athletics, U.S. Pipe, Energen, Alabama Gas, Blount Industries, BE & K, Brasfield & Gorrie, Hoar Construction, Heller Financial, Fleet Capital, Coca-Cola Bottling Company United, Thompson Tractor, Adtran, Cavalier Homes and others. In addition, we frequently represent bondholders and indenture trustees in reorganization and liquidation cases both in and outside of bankruptcy. We have handled a broad range of matters, including the following:
- Negotiated, Out-of-Court Workouts. A large part of our creditor practice involves representing banks and other lending institutions in negotiating out-of-court debt restructurings. In many cases, a negotiated financial reorganization, outside bankruptcy, is in the best interests of the lender and the borrower.
- Negotiated or Contested Chapter 11 Plans. Sometimes a chapter 11 is advisable to implement agreements between the lender and the borrower or otherwise to protect the lender’s interests. Chapter 11 may serve as a vehicle to implement a reorganization plan agreed to by the parties. Chapter 11 also may prove to be an effective forum to preserve assets and protect the secured creditor’s rights through litigation.
- Debtor-in-Possession Financing. We have represented various entities lending money to chapter 11 debtors in bankruptcy.
- Stay Relief. We have engaged in significant litigation regarding relief from the stay to allow secured creditors to foreclose on collateral and pursue other interests.
- Receivership. We have represented creditors in receivership actions under state law to preserve and dispose of collateral.
We recently represented a secured creditor in terminating exclusivity and obtaining confirmation of a contested chapter 11 plan of liquidation. Currently we are representing several regional and national banks in workout/chapter 11 cases in the aeronautics, automotive, construction, real estate development, retail and other industries.
Our debtor representation exclusively involves chapter 11 business reorganizations and liquidations. Our clients normally are corporate entities, but also include individuals engaged in business. When chapter 11 is necessary, we are oriented towards results: getting our client out of chapter 11 as soon as possible to preserve enterprise value for creditors and shareholders. We successfully have concluded a high rate of our chapter 11 cases with a confirmed plan. Current debtor representations include a national construction company negotiating the sale of assets outside chapter 11 and a regional healthcare facility involved in an out-of-court restructuring. A few of our prior cases include:
- J. A. Jones. We recently completed the chapter 11 cases of J.A. Jones, Inc. and 57 of its subsidiaries before the bankruptcy court in Charlotte, North Carolina. Jones was one of the largest construction, engineering, procurement and services conglomerates in the world. Burdened with over $3.0 billion in debt, Jones sought Bradley Arant’s restructuring assistance three years before filing bankruptcy. The chapter 11 cases were the culmination of Jones’ orderly divestiture of substantially all operating assets on a going concern basis. Within 11 months of the bankruptcy filing, Bradley Arant obtained confirmation of two chapter 11 plans (Jones’ engineering arm, Lockwood Greene Engineers and subsidiaries, was the subject of a separate plan) that ratified a dozen major asset transactions and numerous smaller sales. The process netted over $1.0 billion in total consideration, eliminated another $1.0 in contingent liabilities under Jones’ surety bonds and saved the jobs of over 97% of Jones’ 7,000 employees.
- Birmingham Steel Corporation. Bradley Arant filed chapter 11 for this publicly-traded company and several of its affiliates before the bankruptcy court in Delaware. Creditor claims totaled over $1.0 billion. Bradley Arant obtained confirmation of a chapter 11 plan that involved the sale of the debtors’ assets to Nucor Steel for over $615 million and provided a significant return to shareholders despite the company’s insolvency. Confirmation occurred approximately 100 days after the bankruptcy filing.
- North American Bus Industries, Inc. Bradley Arant served as lead restructuring counsel for this bus manufacturer, the subsidiary of a Hungarian company. Total debts exceeded $100 million. We negotiated an out-of-court settlement involving the purchase of the debt and essentially all assets of both NABI and its Hungarian parent by a Dutch company formed by the Cerberus equity fund.
- MedPartners Network. Bradley Arant served as lead counsel for Caremark Rx, Inc., the sole shareholder of the debtor, in negotiating and obtaining confirmation of a contested chapter 11 plan involving over $1.0 billion in creditor claims before the United States Bankruptcy Court for the Central District of California.
- Jim Wilson & Associates. Bradley Arant represented this leading regional real estate developer and four related entities. Bradley Arant obtained confirmation of a consensual chapter 11 plan involving over $1.0 billion in creditor claims that preserved the debtors’ ownership of the Birmingham Galleria and other signature properties.
- Meadowcraft. Bradley Arant negotiated a consensual chapter 11 plan for a local manufacturer of outdoor furniture, preserving over 1200 jobs in Alabama. Creditor claims totaled over $100 million.
- Globe Manufacturing. Bradley Arant served as chapter 11 counsel in a case involving the nation’s largest independent producer of spandex, with operations in Alabama, New York and Massachusetts. We handled the sale of the company to an Italian buyer and obtained confirmation of a plan involving over $400 million in creditor claims.
- Shook & Fletcher Insulation. Bradley Arant represented the owners of the debtor in negotiating and obtaining confirmation of a plan involving a “channeling trust” for over $100 million in asbestos-related claims.
- Pride Restaurants. Bradley Arant obtained confirmation of a chapter 11 plan for one of the largest minority-owned Burger King franchisees in the country.
- West Jefferson Amusement and Public Park Authority. Bradley Arant obtained confirmation of a chapter 9 plan for the owner of the Visionland amusement park. The case involved over $100 million in debt. Bradley Arant handled the sale of the park, which is open and running today.
- Martin Industries. Bradley Arant obtained confirmation of a chapter 11 plan on behalf of the debtor, a publicly-traded company, less than seven months after the bankruptcy filing.
- Monarch Tile. Bradley Arant obtained confirmation of a chapter 11 that preserved operations and saved over 400 jobs in northwestern Alabama.
- North Sixty Associates/Equitable Joint Venture. Bradley Arant represented a general partner in filing an involuntary case against the joint venture that owned the SouthTrust Tower in downtown Birmingham. The case involved over $100 million in creditor claims. After significant litigation, Bradley Arant obtained confirmation of a contested chapter 11 plan.
- Alabama Symphony Organization. In a pro bono case, Bradley Arant represented the predecessor of the current Alabama Symphony in a chapter 11 case that included the rejection of the Symphony’s collective bargaining agreement.
A financially distressed situation often presents tremendous opportunities for a buyer to acquire assets on advantageous terms. Troubled companies often are motivated to sell valuable operations or properties to streamline their balance sheets, reduce debt or increase cash flow. Bankruptcy offers unique protections to the buyer, including bidding protections and insulation from existing liens and successor liability claims. A few examples where we have represented investors in acquiring assets out of bankruptcy or other distressed situations:
- U.S. Aggregates. We represented Vulcan Materials in buying the major eastern assets of U.S. Aggregates out of bankruptcy in Nevada.
- Shoe City. We represented Pick-n-Pay in buying the Shoe City retail chain out of bankruptcy.
- Wall Street Deli. We represented an investor who acquired the bank debt of Wall Street Deli, a publicly-traded company. After several days of trial, we obtained relief from the automatic stay, allowing our client to foreclose on the debtor’s stores.
- Celtic Media. Our client purchased a radio station out of bankruptcy in Florida through confirmation of a creditor plan we proposed.
- Admanco. We represented EBSCO in the purchase of assets out of a receivership action in Wisconsin.
- The Byrd Companies. On behalf of our investor client, we obtained confirmation of a creditor plan (over the debtor’s objection) that provided for our client’s purchase of several major retail developments in Birmingham and its suburbs.
Bankruptcy cases often create complex litigation cases involving a wide range of issues. Our lawyers frequently go into court to defend claims brought by chapter 7 trustees and chapter 11 debtors. We have a high level of trial experience and a consistent record of settling large cases on attractive terms. Recent examples include two separate seven-figure preference claims that we resolved for unrelated clients in the computer and oil industries for the respective settlement amounts of $10,000 and zero. Currently we are defending a Fortune 500 company in a $376 million fraudulent transfer action. Other types of matters we handle include:
- Reclamation Claims. We have appeared in courts across the country on behalf of clients attempting to reclaim goods sold on credit to debtors on the eve of bankruptcy.
- Contract Assumption. We represent commercial real estate companies, manufacturers, suppliers, telecommunication companies, energy companies and other clients in protecting their interests under leases and contracts with companies in bankruptcy.
- Discharge Litigation. We have represented banks and other lenders in litigation to block the discharge of debtors engaged in fraudulent conduct, successfully trying a number of cases to verdict.
- Avoidance Action and Other Defense Work. We routinely defend preference, fraudulent transfer and other avoidance action claims filed against our clients by bankruptcy debtors and trustees.
Unsecured Creditor Representation
We represent individual companies and unsecured creditor committees in protecting creditor interests in reorganization and liquidation cases.
- Utilities. We represent utilities in local and national cases and assist in recovering pre-petition claims, enforcing contracts and obtaining bonds or other credit protections for post-petition operations.
- Involuntary Bankruptcy. We have filed involuntary bankruptcies to protect creditor or partnership interests, preserve assets and facilitate sales.
- Creditor Plans. Where the debtor has failed to propose an adequate reorganization plan, we have prepared and proposed chapter 11 plans on behalf of creditors. Creditor plans often prove to be a creative and efficient means to achieving our clients’ goals.
