Coyne International Enterprises Corp. – Restructuring

Represented Coyne International Enterprises Corp., a leading U.S. commercial laundry service company with nine plants and 15 service centers in 23 states, in a successful auction of its business operations to three industrial laundry companies as part of its Chapter 11 proceedings. The $49.8 million total sale value from the three buyers – Cintas Corporation, Prudential Overall Supply Company and Clean Uniforms and More! – represented a more than 50-percent premium on starting auction bids.

Sports Franchise – Bankruptcy Counterparty

Represented a major league baseball franchise as counterparty to an advertising agreement and suite license agreement with debtor in connection with the chapter 11 bankruptcy cases of Caesars Entertainment Operating Company, Inc. and its affiliated debtors.

Intelsat Corporation – 11th Circuit Victory in Fraudulent Conveyance Litigation

Herrick represented Intelsat in its recent victory in the 11th Circuit, capping a 7-year litigation during which Herrick's arguments on behalf of Intelsat were upheld at every step. The trustee of the PSN USA Liquidating Trust originally sought to recover more than $7 million in disputed payments. During the discovery phase of the case, Herrick established that approximately $4 million of the payments were indisputably valid, leading the trustee to drop that portion of his claim. As to the remaining $3 million, the 11th Circuit's decision confirmed the decisions of the bankruptcy court and the district court that the payments to Intelsat could not be clawed back. 

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.

Real Estate Brokerage – Commission Dispute

Represented a real estate brokerage firm to successfully resolve an objection to the collection of a large commission earned on the multimillion dollar sale of a Miami property on behalf of a bankrupt entity.

Joint Venture Acquisition of Hotel Assets and Properties

Represented an affiliate of the Bauhouse Group in a joint venture acquisition from affiliates of Lehman Brothers Holdings Inc. of the assets and business of NYLO Hotels LLC; and three NYLO Hotel properties located in Texas and Rhode Island.

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.

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.

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.

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.