Restructuring & Finance Litigation

Represented debtor in chapter 11 proceeding involving the William Vale Hotel, a luxury hotel in Brooklyn. Hotel sold for $177 million pursuant to plan of reorganization. 654 B.R. 524 (Bankr. S.D.N.Y. 2024) and 660 B.R. 534 (Bankr. S.D.N.Y. 2024).

Represented secured lender in case of first impression regarding availability of 1111(b) election in subchapter V case. (S.D.N.Y. 2020)

Represented Milwaukee Bucks co-owner, Marc Lasry, in the sale of his 25 percent stake in the team to Cleveland Brown owners Jimmy and Dee Haslam. According to ESPN, the transaction struck at a $3.5 billion valuation was the second highest valuation ever paid for an NBA team and the third highest valuation for any American professional sports team. It was a tremendously successful conclusion to Mr. Lasry’s tenure as an owner and steward of the championship Bucks.

Won defense summary judgment in bankruptcy court on fraudulent conveyance claim against telecommunications provider. Decision affirmed in District Court and 11th Circuit, 615 Fed. Appx. 925 (11th Cir. 2015)

Represented Kenneth Orr and certain KORR entities, significant shareholders and creditors of the debtor in the In re Charge Enterprises, Inc. Chapter 11 case in the Bankruptcy Court for the District of Delaware. The Debtor commenced its Chapter 11 case with a prepackaged plan negotiated with its prepetition secured lender and sought confirmation of that plan – which provided for the Lender to receive 100% of the equity in post-reorganization Charge – within 48 days of the bankruptcy filing. Prior to the Chapter 11 case, Charge had described in its SEC filings certain aggressive acts by the Lender that hindered Charge’s ability to refinance its debt to the Lender and increased the size of the debt purportedly owed by Charge, which led to the Charge’s inability to repay the notes at maturity. But, in its first-day Chapter 11 filings, the Debtor looked to blame KORR for its predicament, claiming that a separate dispute with KORR over illiquid investments Charge made with KORR left Charge with insufficient liquidity to repay the Lender notes. That dispute was the subject of a separate New York State Court litigation commenced by Charge while negotiating its restructuring with the Lender. In the limited time available in the Chapter 11 case, Herrick engaged in a strategy of attacking the Debtor and its Lender’s proposed restructuring on several fronts. Ultimately, KORR reached a settlement of all its disputes with Charge and the Lender, which was a positive result for Herrick’s client as well as for the Debtor and its estate. The plan and disclosure statement were approved pursuant to the Confirmation Order. 

Herrick represented Flat Footed LLC, an investment management firm, in a successful proxy campaign to block a merger between two distressed REITs. Following a months-long public proxy campaign by Flat Footed opposing the proposed merger between Diversified Healthcare Trust and Office Properties Income Trust, the two companies announced their termination of the merger agreement. 

Representing the Official Retiree Committee in the Chapter 9 bankruptcy of Chester, Pennsylvania.

Representing a significant consignment vendor to Neiman Marcus and Bergdorf Goodman in connection with Neiman’s chapter 11 cases.

Representing three separate companies in connection with estate claims being investigated by a foreign representative in the company’s chapter 15 case.

Representing the fund’s directors in connection with the liquidation of the fund and related funds.

Serving as Co-Counsel to the Official Committee of Unsecured Creditors, on behalf of Debtors’ estates, in lawsuit asserting fraudulent transfer, breach of fiduciary duty, and related claims in connection with prepetition transactions totaling billions of dollars.

Co-counsel to group of minority lenders challenging non-pro rata priming transaction entered into between borrower, majority lenders, and equity sponsor. The litigation involved timely topics that have garnered significant attention in the market, i.e., whether a private roll-up debt exchange qualifies as an “open market” purchase, good faith and fair dealing requirements, and the extent an equity sponsor can claim the economic interest defense to tortious interference claims. The parties agreed to a settlement, and thereafter stipulated to a dismissal of the claims with prejudice. The Court discontinued the action as per the stipulation, and a settlement agreement was finalized.

Counsel to Reorganized SunEdison, Inc. concerning indemnity claims asserted by the syndication agent and lead arranger for a pre-petition second lien loan facility.

Represented a fund in connection with a dispute over treatment of claims in a Chapter 11 plan of reorganization of subsidiary debtors.

Representing the largest ad hoc group of defendants-appellees in a matter that has been litigated for over a decade involving fraudulent conveyance claims arising from a $2 billion leveraged recapitalization. The Second Circuit affirmed the dismissal of all claims In re: Boston Generating, LLC. In so doing, the Second Circuit ruled that the Bankruptcy Code’s safe harbor provision for securities contracts payments, 11 U.S.C. § 546(e), applied to the leveraged buyout and pre-empted the plaintiff-appellant-trustee’s state-law fraudulent conveyance claims, which attempted to claw back approximately $708 million from the defendants-appellees.

Representing indenture trustee for convertible noteholders in connection with Debtors’ bankruptcy cases.

Representation of Cantor Fitzgerald Securities as (i) successor administrative agent and collateral agent under a $660 million first lien facility, (ii) the administrative agent and collateral agent under a $150 million DIP facility in connection with the chapter 11 case of Blackhawk Mining, and (iii) the administrative agent and collateral agent under an $85 million exit facility. 

Represent participants in foreign proceedings that are seeking discovery from U.S.-based entities pursuant to 28 U.S.C. section 1782 for use in the foreign proceedings.

Represented debtor in Chapter 11. Sold multifamily residential apartment building pursuant to plan of reorganization. (E.D.N.Y. 2020)

Represented plan proponent in a chapter 11 proceeding involving 34 apartment buildings in upper Manhattan. Confirmed a pre-packaged plan of reorganization whereby Herrick’s client acquired the properties in less than 90 days. (S.D.N.Y. 2012).

Represented Donald F. Conway, the Bankruptcy Chapter 11 Trustee, in the sale of 4778 Broadway, in the Inwood section of Manhattan, to affiliates of the Housing Development Partnership Corporation and Maddd Equities, for 12.3 million, which was authorized by the Bankruptcy Court. Herrick provided strategic advice and counsel in marketing the site, analyzing potential zoning issues, environmental issues and transactional services.

Represented Chapter 11 debtor that operated industrial laundry and linen company operating plants in 15 states. Led three successful 363 sales that paid senior lender in full and provided substantial payment to junior lienholder. (N.D.N.Y. 2015)

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.