Cases Results

Cases/Results

Acquisition / Sales Show Cases » « Hide Cases

Halcyon

Peitzman Weg 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, we negotiated and consummated the sale of the Terminator sequel, prequel and remake for total consideration in excess of $35 million.

BMK

We 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. We 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

The firm represented 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, we negotiated and consummated the sale of the hospital’s real property and improvements for $22.5 million.

2B Or Not To 2B

We 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, we filed a chapter 11 for the LLC and sought for approval of the sale of the property. Over the objection of the other member, we negotiated and consummated a sale of the property for $5.3 million.

LaundryMart

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

Passport Int’l Entertainment

Our attorneys negotiated and consummated a sale of the film library for $200,000 in our representation of 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.

Committee Representation Show Cases » « Hide Cases

Reference Clothing

In the chapter 11 case of a national retailer of clothing for young women, we 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.

We 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

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

Window Rock Enterprises

We 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.

Our attorneys 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.

Creditor Representation Show Cases » « Hide Cases

Radisson Hotels

We 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, we filed a motion to compel the assumption or rejection of the agreement. The motion was resolved by stipulation with the debtor.

Enron

In this engagement, we 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. The firm spearheaded complex litigation and then drove a successful settlement between plaintiff and several defendants, including its client.

The Shooting Gallery

Our attorneys 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, we 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, we successfully litigated and then settled for no re-characterization of their claims and dismissal of the lawsuit.

Union Bank

Our 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

We 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

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

Lagardère Active Broadcast

We represented 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. We 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, our 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

The firm has represented Taco Bell, Sizzler, Goodyear Tire and Atlantic Richfield in numerous franchise disputes.

JP Morgan

A Peitzman Weg LLP 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

We 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.

Debtor Representation Show Cases » « Hide Cases

Halcyon

As part of our representation of Halcyon, an 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, we staved off attacks by its senior secured lenders on the eve of the film’s release. We assisted in an organized process to attempt to refinance the company’s debt that ultimately led to the sale of the Terminator franchise. Our attorneys 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.

We 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 our assistance to effectuate its plans to deleverage and outsource certain manufacturing operations. We 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, we then 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 our firm 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. We were 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.

Our firm 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.

Litigation Show Cases » « Hide Cases

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, we successfully litigated and then settled for no re-characterization of their claims and dismissal of the lawsuit.

Enron

The firm 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. We 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. The firm won a substantial judgment after trial against the directors and officer.

Lagardère Active Broadcast

We represented 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. We obtained a $4 million judgment in favor of Lagardère in the lawsuit.

Essex Marina City Club

The firm 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. Our attorneys 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

Our attorneys 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

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

Coudert Brothers

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

Metro Racks

We 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. The firm resolved the litigation with limited client contribution.

IndyMac Bancorp

Serving as local counsel, our attorneys represent 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

Our attorneys 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

We 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, we 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, our firm favorably resolved a $55 million preference action. We currently represent the liquidating trustee in objections to $200 million in claims against foreign entities based on international trade documents.

Blue Cross

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

Restructuring / Workout Show Cases » « Hide Cases

Fast Food Franchise

We represent 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, the firm has been instrumental in working to close or sell locations as needed, restructure leases, and reorganize and rehabilitate operations.

California Energy Crisis

Peitzman Weg LLP attorneys continue to be involved in the multibillion 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. We 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 Peitzman Weg 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

The firm 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, we 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, our attorneys worked on the restructuring of over $100 million of legacy senior secured and junior financing owed to private and state sponsored lenders. We later assisted with the sale of the entire facility.

Hotel Owners, Operators and Lenders

Our firm 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

Our attorneys regularly advise 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. We are 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

We have 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

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

Case Results

“. . . this firm attracts a strong following through the consistent quality of its attorneys . . .”

–Chambers USA 2010

“The attorneys of PWK travel the roads and bridges of restructuring and bankruptcy all the time, every day, with four decades of experience. In fact, we built several of the roads and bridges that are now often used for our clients to emerge successfully from the complicated restructuring process.”

–Howard Weg