Business reorganizations and loan workouts for non-bankruptcy debtors:
- Restructured and reorganized commercial debts for small businesses engaged in the following industries: medical practice, restaurant and retail, and real estate construction and development.
Chapter 11 Reorganizations (most recent):
- Allegro Grille Associates, LLC (Restaurant): Confirmed Chapter 11 Plan providing for 100 percent dividends to unsecured creditors plus payments to equity holders.
- Ice Treats (Rita’s Water Ice Franchisee): Used bankruptcy stay to reverse an eviction and restore possession to three locations. Bankruptcy Court issued written published opinion in favor of debtor and against landlord.
- Pankey’s Transportation, Inc. (ground transportation and delivery business): Achieved chapter 11 reorganization for company having several classes of secured creditors holding liens on tractors. Confirmed a plan that was accepted by unsecured creditor class and provides for payment plans to all classes of creditors.
- South 18th St. Capital, LLC: Staved off a foreclosure action and reorganized single asset real estate debtor by providing for sale of key asset and proposed payment to secured creditor.
We have also successfully obtained plan confirmation in the following Chapter 11 cases, resulting in reorganized, operating businesses:
- PS&G BC Connector, Inc. et. al. (Philly Steak & Gyro)
- Lighthouse Galleries, Inc. (Specialty Art Gallery)
- Omega Optical, Inc. (Retail Optical Store)
- Sgarra Bros., LLC (Small Chain of Hair Salons)
- Wheelworks Expert Auto Detail and Car Wash, Inc. (Auto Wash and Detail)
Chapter 11 Successes:
- Arawak Holding Corp.: Settled a large delinquent City of Philadelphia real estate tax debt, allowing Debtor to dismiss the case and maintain its properties for long term investment purposes.
- Safe Disposal Systems, Inc. Settled a large landlord debt, which allowed Debtor to dismiss a Chapter 11 case after 18 months and eventually grow its business outside of bankruptcy.
Chapter 11 and Chapter 7 Litigation (Creditor Representation):
- Star Communications Group, Inc.: Represented an adversary defendant to fight a fraudulent transfer claim by the Chapter 7 trustee based on circumstantial evidence; lifted temporary injunction and settled for a fraction of the amount sought to avoid the expense of litigation and disruption of the client’s business.
- Joseph Grasso: Represented an individual creditor in a personal Chapter 11 and contributed to the appointment of a Chapter 11 trustee (case was ultimately converted to Chapter 7).
- Objected to discharge of a Chapter 7 debtor on behalf of a creditor; debtor ultimately waived the entire Chapter 7 discharge based upon fraud investigation.
- Obtained order and opinion of dismissal for a Debtor who was forced into an involuntary Chapter 7 bankruptcy.
- Represented a group of creditors of Gibraltar Construction Corp. and successfully petitioned for an involuntary Chapter 7 bankruptcy.
- Completed a complex chapter 13 reorganization where debtor paid over $250,000 to unsecured creditors, comprised of mostly business taxes, and which resulted in a 100% distribution and the debtor retaining all assets including several pieces of real estate.
- Represented individuals in large and complex personal chapter 11 cases. Successfully reorganized individuals who retained key assets and received a chapter 11 discharge at conclusion of the bankruptcy plan payment period.
Debtor Litigation Cases:
- Successfully settled one nondischargeability action (fraud) and successfully dismissed a second nondischargeability action in an individual Chapter 11 case, enabling us to confirm a plan of reorganization.
- Successfully settled a nondischargeability action (fraud) based upon an aggressive federal court lawsuit, allowing our client to settle both the nondischargeability suit and the underlying suit for a liquidated sum.
- Successfully resolved four (4) adversary actions (each brought by a different creditor) seeking an objection to the debtor’s right to a discharge under Section 523 of the Bankruptcy Code.
Cases asserted serious allegations of business loan fraud and malicious injury to creditors. Two of the cases were dismissed for failure to state a claim and the other two were resolved amicably and with minimal cost to the Debtor.
- Represented a large retail supply store having multiple locations in the liquidation of its entire business (inventory, racking, website) and negotiation/settlement of personal guarantees.
- Represented a medical imaging company in Northeast Philadelphia with a high patient volume and valuable assets. Lender repossessed assets peacefully and sold them to a third party which ensured the continuity of the business operations and the retention of many employees.
- Assisted other businesses including those in manufacturing, restaurant, retail and professional services in the winding down of their affairs.
- Represented Hollywood Tanning Systems, Inc. and its shareholders in multiple suits brought by creditors under the New Jersey Uniform Fraudulent Transfer Act, including:
- AMC Delancey Richboro Partners, L.P. (dismissed on our motion, terminating the litigation)
- Orchard Mall, LLC (settled for nuisance value at trial after 4 years of litigation)
- GS Partners, LLC (the Court granted summary judgment in favor of Hollywood Tanning Systems and the Venutos, denied all claims sought by plaintiff and ended nearly 10 years of litigation.)
- MSKP Oak Grove, LLC (after 9 years of litigation and a 6 day bench trial, the Court handed down a total defense verdict, entered final judgment in favor of Hollywood Tanning and shareholders)
Commercial Tenant Representation:
- Successfully negotiated out-of-court settlement of lease disputes for commercial tenants, allowing businesses to extend their leases and avoid bankruptcy.
Representation of Professionals:
- Represented architect in insurance lawsuit and successfully dismissed case by preliminary objections in a decision recognized by Law360.
Business/Trade Representation (including Breach of Contract):
- Obtained a large six figure settlement (through private mediation) for plaintiff in a professional malpractice claim filed in the New Jersey Superior Court against commercial insurance broker.
- Obtained an emergency injunction on behalf of a co-managing member of an LLC to appoint him as the sole managing member to make business decisions for company.
- Settled a contentious shareholder dispute between members of a successful antique salvage and reclamation company
- Achieved favorable settlement for local real estate developer who sued lender for improper loan funding practices.
- Settled contentious partition actions resulting in clients keeping valuable real estate or receiving funds from a sale/refinance.