Case Studies

The Nicole Energy Services Bankruptcy

On behalf of the debtor, we prosecuted an action for breach of contract and negligence against a large mid-western pipeline transportation company; the negotiated settlement valued more than $3.5 million for benefit of the creditors. Our attorneys overcame the opposition of the debtor’s management and obtained court approval of compromise. We successfully defended the outcome through appeals up to the United States Supreme Court.

Liquidation of Mid-Sized Residential Apartment Project

Kegler Brown served as counsel to the liquidating trustee for a mid-sized residential apartment project. Through the course of the representation, we discovered errors in the secured creditor’s mortgage and successfully avoided the lender’s lien on the project. We also worked through local zoning authorities to complete platting of the project and negotiated a contract with the property manager while assisting the trustee in supervising operations. Our lawyers also handled the trustee’s sale of property to a unsecured creditor under an innovative “credit bid” procedure and won court approval of the trustee’s sale proposal.

$1.5 Million Liquidation of Shoe Retailer

Our lawyers represented the bankruptcy trustee in the liquidation of a multi-state fashion shoe retailer with inventory valued at more than $1.5 million. Our work included assisting in the closure of four stores in urban retail malls across three states. We also litigated and resolved contested claims of landlords for unpaid rent and charges due under defaulted leases and secured approval of the court for the Trustee’s bulk sale of inventory to a nationally known liquidator. Ultimately, Kegler Brown lawyers prosecuted the actions to recover preferential transfers.

Multi-Million-Dollar Collection Action Against “Closed-Door” Pharmacy

We represented Cardinal Health, a publicly traded Fortune 20 company, in a multi-million-dollar collection action against a “closed-door” pharmacy and four guarantors in three separate lawsuits filed in North Carolina, South Carolina and Oklahoma. Our attorneys assisted in the pre-suit liquidation of the debtor’s assets, including providing client advice on regulatory issues in connection with seizing prescription drug inventory.

Pharmacy Receivership and Related Chapter 11 Bankruptcy in Nebraska

We successfully prosecuted a multi-million-dollar collection action against an operating pharmacy and sought to place the pharmacy in receivership, prompting the debtor to file Chapter 11 bankruptcy in Nebraska. We continued our representation of a public company through those Chapter 11 proceedings, culminating in the sale of the debtor's assets under Section 363, resulting in substantial recovery for our client.

Representation of Community Bank Using Personal Property as Collateral

Not every borrower has real estate to put up as collateral for a loan, but many have personal property that will provide adequate security to a lender. Personal property comprises just about everything other than real property, including goods, inventory, equipment, accounts, documents and instruments. Stock is also personal property, as are interests in partnerships and limited liability companies. Our firm provides ongoing assistance to a local community banking client in documenting secured transactions, including both the promissory note and the relevant security documents, and in perfecting the security interests to establish the bank’s priority vis-à-vis other creditors of the borrower. And we help levy on the collateral if the loan goes bad.

$6 Million Credit Facility Default Workout

We successfully guided an out-of-court workout of a borrower’s default on a $6 million credit facility secured by real estate and heavy construction equipment. Our attorneys assisted in the asset liquidation and resolved priority disputes with other secured creditors. We also negotiated an asset surrender agreement and secured party sale of collateral.