Cases/Results

Halcyon

PWK represents Halcyon Holding Group, LLC and its affiliates, who owned certain rights, title and interest in and to the highly successful Terminator motion picture franchise and who produced the feature film Terminator: Salvation.  As counsel to Halcyon in its chapter 11 case, PWK negotiated and consummated the sale of the Terminator sequel, prequel and remake for total consideration in excess of $35 million.

BMK

PWK represented the then largest full service distributor of general merchandise products and specialty items in the United States (BMK). After suffering several financial reversals, the company defaulted on approximately $96 million in debt. In cooperation with the secured lender, the company filed a chapter 11 in order to consummate a sale of substantially all of the company’s assets. PWK managed the sale process, which resulted in the consummation of the sale of the company’s assets for approximately $72 million.

Granada Hills Community Hospital

Peitzman, Weg & Kempinsky represents a bankruptcy trustee for a 155-bed hospital located in Granada Hills, California. After the trustee determined that the hospital could not be reorganized and then proceeded to close the hospital, PWK negotiated and consummated the sale of the hospital’s real property and improvements for $22.5 million.

2B Or Not To 2B

Peitzman, Weg & Kempinsky represented a limited liability corporation whose primary asset was a three-story office building in Westwood, California. The members of the LLC began to have serious disputes and could not agree on either a voluntary dissolution of the LLC or a sale of the property. While the property had substantial equity, the inability to operate the property resulted in a default to the secured lender and risk of a foreclosure. At the instruction of a managing member, PWK filed a chapter 11 for the LLC and sought for approval of the sale of the property. Over the objection of the other member, PWK negotiated and consummated a sale of the property for $5.3 million.

LaundryMart

PWK represented LaundryMart, the developer and operator of approximately 26 combined-use retail micro-malls located throughout Los Angeles County.  After a sudden and dramatic increase in natural gas prices left the company with insufficient cash flow to service its leases and other obligations, the company filed a chapter 11 case.  PWK negotiated and consummated a sale of the company’s assets for total consideration of $6 million.

Passport Int’l Entertainment

PWK represented the bankruptcy trustee of Passport International Entertainment, a production company that created programming for home video/DVD distribution and licensing to television and cable networks.  Our attorneys negotiated and consummated a sale of the film library for $200,000.

Reference Clothing

In the chapter 11 case of a national retailer of clothing for young women, PWK represented the Official Creditors Committee. The representation included helping to engineer a seven figure settlement involving the assets of the debtor’s principal.

Marine Center, Inc.

PWK represented the Official Committee of Unsecured Creditors in the chapter 11 case of international retailers of pleasure craft.  Our representation included helping to establish a creditors’ trust with proceeds from a settlement with the debtors’ secured creditor.

Steel Horse Automotive Accessories

PWK represented the Official Committee of Unsecured Creditors in the chapter 11 cases of several affiliated debtors that manufactured automobile accessories.  This representation included litigation with the debtors’ secured creditor regarding the scope and operation of its security documents.

Window Rock Enterprises

Peitzman, Weg & Kempinsky represented the Official Committee of Unsecured Creditors of a health food products company.  Client representation included helping to structure a plan pursuant to which a creditors’ trust was established.

Easyriders, Inc.

PWK represented the Official Committee of Unsecured Creditors in the chapter 11 case of a magazine publisher. The representation included major preference and fraudulent transfer litigation on behalf of the estate.

Illuminations.com

Our representation of the Official Committee of Unsecured Creditors in the chapter 11 case of a national retailer of candles and related accessories included litigation against the debtor’s secured lender and its board of directors.

Radisson Hotels

Peitzman Weg & Kempinsky represented Radisson Hotels, one of the leading, full-service global hotel companies in the world, in the bankruptcy case of Linquist & Craig Hotels & Resorts, the owner of multiple hotels in California.  The debtor operated one of the hotels as a Radisson pursuant to a franchise agreement.  After the debtor failed to comply with the franchise agreement, PWK filed a motion to compel the assumption or rejection of the agreement.  The motion was resolved by stipulation with the debtor.

Enron

PWK represented a defendant in a lawsuit to recover alleged preferential and fraudulent transfers arising out the redemption of Enron commercial paper by various broker-dealers and/or holders of such paper.  PWK spearheaded complex litigation and then drove a successful settlement between plaintiff and several defendants, including its client.

The Shooting Gallery

PWK represented the bank group for the independent motion picture producer and sound stage operator known as The Shooting Gallery Pictures.  When the board and officers suddenly resigned and disappeared, PWK engineered strategies involving state law litigation and federal bankruptcy procedures that enabled the bank group to reorganize and dispose of assets and recover under D&O insurance policies.  The banks recovered all of the over $20 million in principal they were owed.

Adventure Parks Group

In our representation of major creditors as defendants in a lawsuit to re-characterize their claims filed by the chapter 11 debtors, PWK successfully litigated and then settled for no re-characterization of their claims and dismissal of the lawsuit.

Union Bank

PWK attorneys represented Union Bank in the restructuring and chapter 11 cases of real estate, manufacturing, retail and other business with banking indebtedness of over $10 million.

CIT Business Credit

PWK attorneys represented CIT Business Credit in the restructuring and chapter 11 cases of technology, manufacturing, and other business with senior and junior asset based financing in excess of $20 million.

Los Angeles Bonaventure Hotel

PWK attorneys represented the senior secured creditor in the chapter 11 case involving the restructuring of the Los Angeles Bonaventure Hotel.

Lagardère Active Broadcast

PWK represents Lagardère, a major French and international media company, as plaintiff in a lawsuit for alleged breach of contact and related claims against the producers of the American adaptation of a popular French film. PWK obtained a $4 million judgment in favor of Lagardère in the lawsuit.

Reference Clothing

In the chapter 11 case of a national retailer of clothing for young women, PWK’s representation of the Official Creditors Committee included helping to engineer a seven figure settlement involving the assets of the debtor’s principal.

Taco Bell, Sizzler

A PWK attorney has represented Taco Bell, Sizzler, Goodyear Tire and Atlantic Richfield in numerous franchise disputes.

JP Morgan

A Peitzman Weg & Kempinsky attorney represented the secured lender in the bankruptcy case of Cimm’s, a national Burger King franchisee with over 130 locations when the bankruptcy commenced.

Conservation Billing Services

PWK obtained a substantial judgment in favor of Conservation Billing Services, a plaintiff in a breach of contract lawsuit against real estate development and management group.

Halycon

PWK represented the Halycon independent film-making concern that owned certain rights, title and interest in and to the highly successful Terminator motion picture franchise and that produced the feature film Terminator: Salvation to stave off attacks by its senior secured lenders on the eve of the film’s release.   PWK assisted in an organized process to attempt to refinance the company’s debt that ultimately led to the sale of the Terminator franchise. PWK helped the company to negotiate terms with its secured lender, unsecured creditors and stakeholders that is expected to lead, upon the realization of future rights and revenues, to the satisfaction of all of the company’s debts and a return to interest holders.

Industrial Parts Depot, Inc.

Peitzman, Weg & Kempinsky assisted IPD through a financial and business restructuring of its 60-year old family business. Since the 1950’s, IPD operated a midsized manufacturing company specializing in replacement parts for diesel engines from its facilities in Torrance, California. The company sought PWK’s assistance to effectuate its plans to deleverage and outsource certain manufacturing operations. PWK supported the company’s attempts to negotiate consensual terms for a restructuring with IPD’s existing stakeholders, lenders and vendors. When attempts at a consensual global restructuring were unsuccessful, PWK guided the company through a chapter 11 process to achieve the same results.

Home Organizers, Inc.

In the throes of aggressive maneuvers by the company’s senior secured lender, the company’s founder and acting CEO called PWK to assist him in protecting his company.  Our attorneys engaged in immediate negotiations with the secured lender and responded to aggressive lender tactics with proactive strategies, including filing an emergency chapter 11 that restored company management.  PWK was able to create and negotiate a consensual resolution that protected the secured creditor’s interest in a prompt pay-down of its debt while providing the founder with the time and resources that he needed to refinance the company’s obligations.

Applause, Inc.

PWK was called to assist the leading manufacturer and distributor of children’s plush animals in maximizing value for creditors and stakeholders following a string of unsuccessful business ventures and the unfortunate death of its founder and CEO. Our attorneys assisted the company in seeking bankruptcy protection in chapter 11 to stay creditor claims and permit stabilization of the company’s business and an organized sale process.

Citibank

PWK represents Citibank in a lawsuit filed by Heller Ehrman against Citibank and Bank of America to recover up to $60 million allegedly paid to the banks before and after Heller filed bankruptcy in December 2008.

Adventure Parks Group

In our representation of major creditors as defendants in a lawsuit to re-characterize their claims filed by the chapter 11 debtors, PWK successfully litigated and then settled for no re-characterization of their claims and dismissal of the lawsuit.

Enron

PWK represented a defendant in a lawsuit to recover alleged preferential and fraudulent transfers arising out the redemption of Enron commercial paper by various broker-dealers and/or holders of such paper.  PWK spearheaded complex litigation and then drove a successful settlement between plaintiff and several defendants, including its client.

Easyriders, Inc.

We represented a liquidating trust as plaintiff in a fraudulent transfer and preference lawsuit against former directors and officers of Easyriders and Paisano Publications, chapter 11 debtors.  PWK won a substantial judgment after trial against the directors and officer.

Lagardère Active Broadcast

PWK represents Lagardère, a major French and international media company, as plaintiff in a lawsuit for alleged breach of contact and related claims against the producers of the American adaptation of a popular French film. PWK obtained a $4 million judgment in favor of Lagardère in the lawsuit.

Essex Marina City Club

PWK represented Essex Marina City Club, a ground lessor who had foreclosed on its lien securing the payment of ground rents and other related fees, in a quiet title action brought by the purchase money lender.  PWK successfully resolved the matter with no financial contribution from the client and with the lender agreeing not to challenge the client’s lien priority.

Illuminations.com

PWK obtained a substantial settlement in its representation of a bankruptcy trustee in lawsuits against former directors and officers of the debtor, a national retailer of candles and related accessories, and against the insurer on the directors’ and officers’ liability policy.

Granada Hills Community Hospital

PWK represented a bankruptcy trustee as plaintiff in a lawsuit against the hospital’s former directors and officers for breach of fiduciary duties. PWK obtained a substantial settlement from the directors’ and officers’ liability insurer.

Coudert Brothers

PWK represented a bankruptcy trustee as plaintiff in a lawsuit brought against Coudert Brothers LLP for professional malpractice and breach of fiduciary duties.  PWK obtained a favorable settlement from the law firm’s professional liability insurer.

Metro Racks

PWK represented debtor’s officers and directors and related entities as defendants in a lawsuit brought by the bankruptcy trustee of Metro Racks for breach of fiduciary duty, fraud and other claims.  PWK resolved the litigation with limited client contribution.

IndyMac Bancorp

Serving as local counsel, PWK represents a former IndyMac director and officer in a lawsuit by a bankruptcy trustee against former IndyMac insiders for alleged breach of fiduciary duty and related claims.

MoneyGram Payment Systems

PWK represented MoneyGram as a defendant in a lawsuit involving tort claims.  We successfully obtained MoneyGram’s dismissal from the lawsuit for a nominal amount. In addition, our attorneys represent MoneyGram as plaintiff in non-dischargeability actions against bankrupt debtors.

Conservation Billing Services

PWK obtained a substantial judgment in favor of Conservation Billing Services, a plaintiff in a breach of contract lawsuit against real estate development and management group.

GTS Investments, Inc.

Acting as defense counsel, PWK represented GTS Investments, Inc. as a defendant in a state court action on a guaranty of $160 million in debt relating to real properties located in jurisdictions outside California.

Trigem America Corp

In representing a liquidating trustee as plaintiff in the chapter 11 case of Trigem America Corp, PWK favorably resolved a $55 million preference action.  PWK currently represents the liquidating trustee in objections to $200 million in claims against foreign entities based on international trade documents.

Blue Cross

PWK attorneys have assisted Blue Cross and other insurers in investigating and prosecuting fraud claims in state and federal courts, including bankruptcy courts.

Fast Food Franchise

PWK represents a large multi-state fast food franchise in restructuring and workout negotiations with the franchisor and the senior and junior lenders.  Working with investment bankers to systematically evaluate each of over 80 locations, PWK has been instrumental in working to close or sell locations as needed, restructure leases, and reorganize and rehabilitate operations.

California Energy Crisis

PWK attorneys continue to be involved in the multi-billion dollar restructuring and bankruptcy matters arising from the 2000-2001 California energy crisis.  We represent Powerex Corp., a subsidiary of BC Hydro and one of the largest sellers of energy to the State of California and its independently operated utilities, Pacific Gas & Electric, Southern California Edison and San Diego Power & Gas.  PWK also represented Portland General Electric, another major supplier of electricity to the utilities in California as well as the largest subsidiary of Enron.  We also represented Powerex and Portland General Electric in the significant chapter 11 case of major energy companies such as Pacific Gas & Electric, Enron Corp. and Mirant Corporation.  A PWK attorney was also appointed committee chair of California Power Exchange (CalPX), a central marketplace that handled 75 to 80 percent of the state’s electricity purchases during the late 1990s and was forced into bankruptcy during the California energy crisis.

Real Estate Owner/Developer

PWK successfully negotiated a one-year forbearance agreement with the senior secured lender that was owed over $20 million on a multi-use project that included office, commercial and residential users to permit an orderly short sale free and clear, a release of all personal guaranties, and a payment of $1 million plus costs to the owner/developer.

Food Processing

With our successfully negotiated preferred stock investment, the founder of a billion dollar food processing company was permitted to retire $20 million of high-interest rate mezzanine financing that was in default, eliminate personal guaranties, and rebuild portions of the business that suffered several market set backs.

Equipment and Service Provider

We successfully negotiated default waivers and a restructuring agreement with the senior secured lender that was owed over $15 million. The agreement allowed the sale of a low-margin business segment and the restructuring of the remaining business segment to permit the company to focus on high-end, high-margin business opportunities.

National Design and Turn-Key Builder

For a national design and turn-key builder of large “big box” super-markets, other retailers and large manufacturing facilities, PWK successfully negotiated a forbearance agreement that allowed the company to sell certain business segments and close others.

Sherman Oaks Health System

For a 250-bed full service hospital with a special burn unit, PWK attorneys worked on the restructuring of over $100 million of legacy senior secured and junior financing owed to private and state sponsored lenders.  PWK later assisted with the sale of the entire facility.

Hotel Owners, Operators and Lenders

PWK has represented numerous hotel owners and operators, as well as senior and junior lenders, in restructuring senior and mezzanine financing, operating agreements with major and local operators, leases, supply contracts and development agreements.

Energy Contracts

PWK regularly advises clients on structuring and restructuring different forms of energy contracts, including ISDA, Edison or WSPP forward contracts, commodity contracts, repurchase, and exchange agreements, and related netting, collateral and credit support arrangements for electricity, gas and other products.  PWK is one of only a few firms in the United States that have expertise and experience in negotiating, structuring and actually litigating complex financial contracts such as forward contracts, repurchase agreements, swaps and others, including the special safe-harbor treatment afforded to such contracts under the Bankruptcy Code under certain circumstances.

Entertainment Industry

Our vast experience in structuring and restructuring contracts and relationships in the entertainment business include: joint venture agreements among studios and producers, production agreements, rights agreements, distribution agreements and service agreements for motion pictures, animated films and programs, video games and television programs.

Hospitality and Gaming

PWK has successfully restructured agreements based on changes in circumstances and markets involving hospitality and gaming properties throughout the United States.  These include senior and junior loan agreements, management agreements, building contracts and supply agreements.

Lease Restructuring

PWK has successfully restructured many real property lease agreements to protect landlords or tenants from various contingencies, risks and changes in circumstances.