Matters

$10 Million ShopRite Purchase

Represented the purchaser in the $10 million purchase of a ShopRite in Orange, CT. The property had environmental concerns and a tight 1031 deadline, but Herrick's full-service real estate department was able to work out all issues and close the deal before the deadline.

$70 Million Sale of the Milburn Hotel

Represented the seller of the Milburn Hotel in a $70 million transaction lasting over a year with complicated issuers with multiple buyers. In addition to the real estate transaction, this sale involved complex tax structuring and defeasance issues.

$22.4 Million Acquisition of St. John’s University Campus

Represented India-based Amity Education Group, a nonprofit international education group, in the $22.4 million purchase of the St. John’s University 170-acre waterfront campus located in Oakdale, Long Island.

$12.5 Million Asphalt Plant Purchase

Represented Peckham Industries in the purchase of a Canal Asphalt Inc. plant located in Mt. Vernon, New York. The $12.5 million sale was the result of a bankruptcy auction in early 2016.

$6.4 Million Pharma Research Facility Sale

Represented PH Holdings, a pharmaceutical manufacturer, in the $6.4MM sale of its research facility in East Windsor, N.J. to Aurobino Pharma.

Restructuring Advisor – Fraud Claims Related to Sale of Debtor’s Assets

Successful defense of the former restructuring advisor appointed in Winstar Communication's long-since completed Delaware chapter 11 case in a lawsuit filed by plaintiffs who had purchased the debtor's business in a court approved section 363 sale. The plaintiffs asserted various claims against the advisor and other defendants related to losses sustained following the sale. In a joint effort with the restructuring advisor's co-defendants, Herrick defeated the plaintiff's attempt to circumvent the running of the statute of limitations under Delaware law by filing the action in New York state court. We were able to obtain dismissal of the lawsuit once it was removed to Delaware bankruptcy court, and won affirmation of the dismissal in the Delaware District Court. The plaintiffs' appeal to the Third Circuit was subsequently denied.

Global Advertising Company – $10 Million Avoidance Action

Negotiated a settlement equal to two percent of the original demand on behalf of a global advertising services company in a $10 million avoidance action arising from a subsidiary's involvement in the advertising and branding campaign for the failed Fontainebleau hotel and casino in Las Vegas.

Brooklyn Mortgage Loan

Represented Bank Hapoalim in a mortgage loan to an affiliate of Hidrock Realty, made in connection with Hidrock’s acquisition of 32 Fifth Avenue in Brooklyn.

Court Appointed Receiver – Dissolution of Hedge Fund

Represented the court-appointed receiver over the dissolution of a hedge fund, which at its peak had assets under management of over $500 million. Herrick successfully guided the administration of the fund's investments, assessed litigation strategies and negotiated resolutions of claims against the hedge fund that resulted in a court-approved plan of distribution to creditors and investors.

Bank Leumi – Dismissal of Complaint

Representation of Bank Leumi USA in lawsuit by a trustee for bankrupt jeweler M. Fabrikant & Sons, Inc., who sought to recover approximately $12 million in payments Fabrikant had made to Bank Leumi on account of loans made to Fabrikant prior to the bankruptcy filing. Herrick, together with counsel to several co-defendant financial institutions, successfully argued that the Complaint failed to plead a plausible cause of action for fraudulent transfer or preference recovery. The Bankruptcy Court agreed and ordered the dismissal of the Third Amended Complaint; that order was appealed to the United States District Court (S.D.N.Y.), where Judge Sullivan agreed with the Bankruptcy Court. The plaintiff then sought review by the Second Circuit Court of Appeals. On October 2, 2013, the Second Circuit issued an opinion affirming the dismissal.

The Fuller Brush Company, Inc. – Successful Chapter 11 Reorganization – Post Confirmation Liquidating Trust

Representation of the jointly-administered chapter 11 bankruptcy cases of The Fuller Brush Company, Inc. (best known for the "Fuller Brush Man," the ubiquitous salesman that went door-to-door selling Fuller Brush custom brush and housecleaning products) and its corporate parent, CPAC, Inc. Guided the Debtors from their voluntary petitions, to a sale of substantially all of the assets of Fuller Brush, through confirmation of their joint chapter 11 plan. The sale of Fuller Brush's non-consumer business assets to a local business conglomerate in Great Bend, Kansas allowed the operations in the 600,000 square foot facility to continue, with the company's over 180 employees remaining in place.

Winstar Communications Trustee – Bankruptcy Appeal

Representation of the Trustee for Winstar Communications in an adversarial proceeding asserting claims of insider/voidable preference, equitable subordination and breach of contract, against Lucent Technologies. After winning at the bankruptcy court level following a one month trial and an initial appeal to the US District Court, we successfully argued to the US Third Circuit Court of Appeals in a case then valued at about $340 million. The Third Circuit affirmed the courts below and found that Lucent was an insider of Winstar. In so ruling, the court also upheld the Trustee's arguments regarding earmarking, new value, core versus non-core jurisdiction, right to jury trial and equitable subordination. The American Bankruptcy Institute Journal, in its April 2009 issue, featured the Third Circuit decision and wrote that the case “opens an entirely new and extensive arena in bankruptcy-preference litigation that may cause profound changes in both preference-risk assessments and creditor behavior.”

First Lien Lender – Property Owner Bankruptcy

Herrick represented the first lien lender on a $20 million loan secured by a nearly completed, uninhabited 46 unit condominium project. The lender was in the process of foreclosing on the property when the property owner filed a chapter 11 case. Working collaboratively with the mezzanine lender to whom the membership interests of the property owner were pledged, Herrick successfully maintained the receiver in place and forced the debtor to transfer the property to the lender under a chapter 11 plan of reorganization.

Bridge Lender – Real Estate Debtor Bankruptcy

Represented the bridge lender in a single asset real estate debtor case in which Herrick successfully won default rate interest of 24% during the pendency of the debtor's chapter 11 case, where the non-default interest was 12% and the only default asserted was the filing of the debtor's bankruptcy case. Herrick also successfully defeated the debtor's reorganization plan that contemplated a cramdown of the client's mortgage debt, ultimately leading to a consensual chapter 11 plan in which the luxury high-rise condominium in Williamsburg securing the mortgage was transferred to our client.

State Pension Fund – General Growth Partners Bankruptcy

Represented state pension fund in General Growth Partners bankruptcy case in which Herrick successfully argued for additional default interest of over $11 million on client's secured debt where the sole default under the loan documents was the filing of the GGP chapter 11 cases, and the GGP debtors had proposed joint chapter 11 plans that cured and reinstated all secured debt at the non-default rate.

Commercial Bank – Sale of Loan Facility

Representation of a U.S. commercial bank in a workout of a multi-million dollar first lien revolving loan facility made to a leading maker of Lucite commemoratives. The workout culminated in a successful sale of the loan to the second lien lender.

Special Servicer – Dismissal of Debtor’s Bankruptcy

Representation of a special servicer in having a debtor’s bankruptcy dismissed, with prejudice, in a hotly contested cram-down confirmation proceeding.

Fred Leighton – Jeweler to the Stars

Debtors' counsel for Fred Leighton LLC, famous “Jeweler to the Stars,” and related companies in their Chapter 11 bankruptcy cases. Fred Leighton’s collection is widely recognized as the world's most prestigious collection of rare and historic jewels.

Ultra Stores – Successful Chapter 11 Plan

Represented Ultra Stores—a 200-store jewelry chain—in its recapitalization through an expedited Chapter 11 plan, guiding the company from filing to confirmation in less than four months. We negotiated first lien emergence financing with an institutional lender and a debt-for-equity swap with the second lien lender and the trade creditors. At the same time, management was able to retain 26% ownership in the company.

Venture Capital Firm – DIP Financing

Representation of a mid-sized venture capital firm in connection with a secured credit facility to a debtor-in-possession in a Chapter 11 bankruptcy case in the United States Bankruptcy Court for the District of Delaware. The debtor/borrower is one of our client's portfolio companies involved in the healthcare sector. In addition to being the DIP lender, our client is also a pre-petition lender to, and holds a majority equity interest in, the debtor.

Money Center Bank – Mortgage Sale

Representation of a money center bank in the sale of a mortgage loan made to a not-for-profit private community hospital.

Foreign Lender – Loan Restructuring

Represented a foreign lender in the restructuring of a $150 million mezzanine loan to an investment fund, including re-capitalization of certain fund platforms and the sale of certain fund assets.

Major Comic Book Company – Library Acquisition

Represented purchaser of a significant comic book library from a prominent video game company's Chapter 7 Bankruptcy Trustee.

Winstar Communications Trustee – Bankruptcy

Representation of the Trustee for Winstar Communications in its bankruptcy case against Lucent Technologies. Following a three month bench trial, the Delaware Bankruptcy Court awarded the Trustee judgment on its bankruptcy and breach of contract claims against Lucent, finding Lucent to be an insider of Winstar. The Court also found that a $188 million payment made four months before Winstar's bankruptcy was held to be a voidable preference to be repaid by Lucent to Winstar.