Parker Poe’s Bankruptcy, Reorganization & Creditors’ Rights Practice Group is one of the most sophisticated and experienced in the Carolinas. We focus on representation of clients in all phases of commercial bankruptcy cases, state court receiverships, consensual restructurings and loan workouts. Our local, regional and national clients include banks, finance companies, commercial mortgage backed securities (CMBS) servicers, mortgage and insurance companies, property and equipment lessors and manufacturers.
Secured Creditor Representation – We routinely represent creditors in Chapter 11 proceedings throughout the United States. Our work regularly includes:
- Protecting cash collateral
- Negotiating post-petition financings
- Obtaining adequate protection and relief from stay orders
- Contesting financing arrangements and plan confirmations
- Filing involuntary petitions against insolvent debtors
- Defending preference and fraudulent conveyance actions
- Representing governmental taxing authorities in ad valorem tax disputes in bankruptcy
A recent example of our success in this area involved our representation of a national CMBS servicer in connection with approximately $36 million in loans from a borrower with over fifty convenience stores throughout North Carolina and South Carolina. When the borrower filed its Chapter 11 bankruptcy petition, we assisted the client in defeating an insider plan of reorganization and forcing a §363 auction and sale of the stores as going concerns, resulting in a substantially greater return than the plan originally proposed by the debtor.
Debtor Representation – Parker Poe has represented corporations as debtors in Chapter 11 reorganizations and liquidations. Our representation has included one of the largest Chapter 11 bankruptcy actions in the Carolinas – a holding company with multiple domestic and foreign subsidiaries, having assets of $350 million, liabilities exceeding $1.2 billion and more than 15,000 creditors. We also confirmed a prearranged debtor reorganization in which creditors were paid in full after a §363 sale of a division of the company and our client was able to exit bankruptcy in less than four months after filing.
Creditor Committee Representation – Our work includes representation of Committees of Unsecured Creditors. A recent example involved a Chapter 11 debtor which operated in six states in the Southeast and the West. When Parker Poe was retained as committee counsel, estimates of distributions to unsecured creditors ranged between 5 to 8 percent. Parker Poe vigorously represented the committee in pursuing actions in North Carolina and Delaware against multiple third parties, and through these actions was able to increase the distribution to unsecured creditors to approximately 30 percent.
Purchaser Representation – Parker Poe represents parties in purchasing assets from bankrupt entities. These engagements have included participation in §363 sales, as well as purchases completed in connection with Chapter 11 plan negotiation and confirmation. An example of our work in this area involved the representation of a buying group which acquired, in a merger consummated pursuant to a Chapter 11 plan, a 125-store retail chain operating in 27 states and having an enterprise value of $400 million.
Restructuring and Workouts – We regularly represent lenders in loan restructuring and forbearance arrangements. Our substantial experience includes commercial and industrial secured and unsecured credits, as well as real estate secured financings. A recent engagement involved representing a bank in the restructuring of a multi-million dollar credit facility for a Carolinas-based manufacturer with operations and collateral located throughout the Southeast.