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Bankruptcy & Financial Restructuring

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Overview

Stoll Keenon Ogden's Bankruptcy & Financial Restructuring practice counsels clients in all aspects of troubled credit situations, in and out of the bankruptcy courts and foreclosure lawsuits.

Our bankruptcy attorneys maintain a regional reputation for providing outstanding legal advice to all types of constituencies in insolvency situations. We provide distinct, full service capabilities to clients including business debtors, secured creditors, unsecured creditors, investors, committees and lessors.

Our experience includes the following:

  • Representation of lenders with respect to real estate loans, securitized loans and asset-based lender credit
  • Purchase and sale of assets or going concern businesses, in and out of bankruptcy
  • Debtor-in-possession lending
  • Litigation, including avoidance actions; lender liability; equitable subordination; validity, perfection, priority and enforcement of liens
  • Involuntary proceedings
  • Auctions, liquidations, going out business sales and assignments for benefit of creditors
  • Consumer-related issues including non-dischargability, lien avoidance, guarantor issues and defense of consumer statutory claims
  • Foreclosure and intellectual property insolvency
  • Foreclosure actions including those involving offices, warehouses, shopping centers, multi-family and real estate developments
  • Realty and equipment lessors’ issues

Work Highlights

Sucessful Defense of Veil-Piercing Claim

Spradlin v. Beads & Steeds Inns, LLC (In re Howland), 2017 WL 24750; 2017 U.S. App. LEXIS 222, 2017 WL 24750 (6th Cir. 2017) – Adam Back successfully briefed and argued on behalf of the Appellee before the 6th Circuit Court of Appeals. The resulting opinion affirmed judgment on the pleadings in favor of his client and an order denying the trustee’s motion to amend her complaint to include a substantive consolidation claim.  Adam argued that reverse veil piercing could not be utilized by a Chapter 7 trustee to permit fraudulent conveyance claims under the Bankruptcy Code and Kentucky law based on a transfer made by an entity wholly owned by the debtors.  He also maintained that the trustee could not rely on substantive consolidation to merge the assets and liabilities of the debtors and their wholly owned, non-debtor entity.  The 6th Circuit affirmed both bankruptcy court decisions—516 B.R. 163 (Bankr. E.D. Ky. 2014) and 518 B.R. 408 (Bankr. E.D. Ky. 2014)—which were also affirmed by the district court—2016 WL 3176649; 2016 U.S. Dist. LEXIS 74830 (E.D. Ky. 2016).

In re James River Coal Company

Lead Case No. 14-31848, United States Bankruptcy Court for the Eastern District of Virginia – Adam Back advised a member of the unsecured creditors committee and a landlord in one of the largest bankruptcy cases in 2015. Additionally, Adam negotiated a walk-away deal for a client in a $467,000 preference action.

In re Armstrong Energy, Inc.

Lead Case No. 17-47541-659, United States Bankruptcy Court for the Eastern Division of Missouri – Adam Back and Lea Goff represented Debtor’s largest customer concerning complex supply contract assumption and rejection issues in Chapter 11 sale of assets.

In re Adair County Hospital District

Case No. 13-10939, United States Bankruptcy Court for the Western District of Kentucky – Adam Back worked with George Smith and Emily Pagorski in the representation of the largest secured creditor in one of the first Chapter 9 cases filed in Kentucky.

In re Financial Holdings, Inc.

Case No. 15-51187, United States Bankruptcy Court for the Eastern District of Kentucky – Adam Back led a Stoll Keenon Ogden team representing a bank holding company in its Chapter 11 bankruptcy, the first of its kind in Kentucky. The ownership of the bank was successfully sold via a Section 363 sale which allowed the bank to continue operations.

Fed. Ins. Co. et al. v. Woods (In re Woods)

558 B.R. 164 (Bankr. W.D. Ky. 2016) – In a bankruptcy adversary proceeding, Adam Back obtained summary judgment as to liability and nondischargeability under Section 523(a)(6)—the discharge exception for willful and malicious injury to property—due to debtor’s theft from his employer. After entry of summary judgment, the parties agreed to a judgment amount of  $996,200 in favor of Adam’s clients.

In re Toys “R” Us, Inc.

Lead Case No. 17-34665, United States Bankruptcy Court for the Eastern District of Virginia – Represented IT service provider regarding its master service agreement with certain of the debtors and the continuation of critical services post-petition.

In re Red River Healthcare, LLC et al.

Lead Case No. 15-51438, United States Bankruptcy Court for the Eastern District of Kentucky – Adam was appointed to serve as the Chapter 11 Trustee for a group of rural healthcare providers facing significant federal, state, and local tax liabilities along with Medicaid reimbursement issues. He successfully oversaw the operation of the clinics while negotiating with key creditors and stakeholders.  Ultimately, he proposed plans of reorganization for each of the five debtors that were approved by the Court.

In re Whitesburg Realty, LLC

Case No. 16-50721, United States Bankruptcy Court for the Eastern District of Kentucky – Adam Back and Jessica Middendorf represented the largest secured creditor ($4.22 million claim) in a Chapter 11 single asset real estate case. Adam first-chaired the plan confirmation hearing.  The court denied confirmation based on the artificial impairment of an unsecured creditor claim held by the debtor’s former law firm, and the bankruptcy case was dismissed.

In re Rosenbaum Feeder Cattle, LLC et al.

Lead Case No. 17-70963, United States Bankruptcy Court for the Western District of Virginia – Adam Back, Lea Goff, and Tim Wiseman represented debtors, 4th-generation family farmers, in a successful Chapter 11 reorganization involving a dispute with a secured lender owed over $5 million in debt.

Commercial Foreclosure

Represented major regional banks and community banks in foreclosures of office buildings, shopping centers, golf courses, subdivision property, multi-family residential properties, warehouses, manufacturing facilities and others. He served as local council for the Special Servicer for the Trust in two CMBS loan foreclosure actions one of which involved indebtedness of $31 million dollars secured by a shopping center which was successfully completed in August 2017 and the other involving indebtedness of $17 million dollars secured by a student housing complex and which was successfully completed in May 2018.

Reorganization, Refinancing and Acquisition of Major Healthcare Entity

Stoll Keenon Ogden represented a major healthcare services entity, its affiliated upstream and sister companies, its owners and its founding management team in comprehensive reorganization, refinancing and acquisition transactions totaling more than $300 million. The matters resulted in the closing of a senior secured term loan and  revolving credit facilities secured by owned senior care facilities in four states with a 9-member syndicate of commercial banks; the requisition of waivers, consents and estoppels from various property lessors on leased senior care facilities in four states; restructuring of upstream holding companies and combination of two upstream ownership groups and boards of managers; the creation of a management company; the introduction of healthcare facility management agreements; the migration of payroll and benefits for more than 7,000 employees; the related restructuring of multiple lease and debt financing and supplier relationships;  the creation and reorganization of multiple SPE organizations accompanied by extensive non-consolidation analysis and issuance of a substantive non-consolidation opinion to the lending syndicate; the exercise of purchase option and acquisition of multiple senior care facilities; the contribution of additional equity capital from the client’s majority owners; and the amendment and restructuring of multiple Master Lease and inter-creditor agreements.

Purchase of Bankrupt Bookseller

Represented a bookseller enterprise in its acquisition of another bookseller's assets in Kentucky and Ohio in a Section 363 Bankruptcy sale.

Trust Company

Represented a bank in the purchase of all the outstanding stock of a trust company.

Industry Involvement

American Bankruptcy Institute

National Conference of Bankruptcy Judges

Kentucky Bankers Association

CARE Program

Louisville Bar Association, bankruptcy section

Kentucky League of Cities

News

Publications