G4 Capital Bridge Affiliate – $26 Million Brooklyn Acquisition Loan

Represented an affiliate of G4 Capital Bridge, LLC in a $26 million leasehold acquisition loan financing to 285 Schermerhorn LLC in Brooklyn.

Harel Insurance – Acquisition in Nashville, Tennessee

Represented Harel Insurance Company in the acquisition of a fifty-percent interest in an $82mm construction facility for the ground up construction of  a 420 unit rental property in Nashville, Tennessee.

Empire State Realty Trust – $30 Million Connecticut Refinancing

Represented Empire State Realty Trust in a $30 million refinancing of commercial property located in Norwalk, Connecticut.

Empire State Realty Trust – $40 Million Condominium Refinancing

Represented Empire State Realty Trust in a $40 million refinancing of two commercial condominiums located at 1010 Third Avenue and 77 West 55th Street in Manhattan.

PH Holdings – $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.

Peckham Industries – $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.

Amity Education Group – 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.

Real Estate Hotel Owner – $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.

Continental Ventures – Upper East Side Joint Venture

Represented Continental Ventures in a joint venture transaction involving the acquisition, financing and development of a luxury mixed-use project on the Upper East Side of Manhattan.   

Commercial Bank – All Claims Dismissed in Litigation over Failed Loan

Negotiated a settlement on behalf of a commercial bank resulting in the voluntary dismissal of all claims filed in a New Jersey state court by an asset manager seeking to hold the bank responsible for losses on a failed loan made to a furniture business prior to the business’ bankruptcy filing.  Claiming that it had been induced into extending the loan based, in part, on a multi- million revolving credit line extended to the business by our client, the plaintiff argued that the credit line and our client’s alleged failure to adequately monitor the business gave the plaintiff the impression that the business was is better financial shape than it was.  Following Herrick’s filing of a third-party complaint, repeated motions to dismiss and an aggressive discovery, the plaintiff dismissed its claims against our client without any payment or admission of wrongdoing while negotiating settlements from the remaining defendants. 

Empire State Realty Trust – $30 Million Retail Condominium Refinancing

Represented Empire State Realty Trust in the $30 million refinancing of a retail condominium located at 1542 Third Avenue on Manhattan's Upper East Side.

Empire State Realty Trust – $35 Million White Plains Refinancing

Represented Empire State Realty Trust in the $35 million refinancing of its property located at 10 Bank Street, White Plains, New York.

Centennial Bank – Loan to Extell Development for Deer Valley Ski Resort

Represented Centennial Bank in two complex acquisition loans to affiliates of Extell Development Company. Extell, which owned a 40-acre site in Deer Valley, Utah, acquired two parcels of land totaling 2,500+ acres for future development as a hotel/condominium/ski resort.

FBE Limited and Treetop Development Affiliate – Bronx Refinancing and JV Restructuring

Herrick represented an affiliate of FBE Limited and Treetop Development in the restructuring of the ownership and refinancing of a building located at 1600 Sedgwick Avenue in the Bronx.

Israeli Insurance Company – Loan Participations

Represented an Israeli insurance company in the purchase of loan participations in several construction facilities and permanent mortgage loans  totaling in excess of  $150 million.

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.

Bank Hapoalim – 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, NY.

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.

AEW Capital Management – 175 Varick Street Leasehold Interest Sale

Represented AEW Capital Management in the sale of its leasehold interest in 175 Varick Street to an affiliate of Tishman Speyer.

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

Represented 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 Properties’ Bankruptcy

Represented a state pension fund in General Growth Properties' bankruptcy 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 the 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

Represented 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.