Representative Bankruptcy, Restructuring & Financial Services Transactions

Print Page
  • Multiple Hotel Portfolio

    In 2020, represented multi-billion dollar financial institution in negotiating a forbearance and extension of a defaulted mezzanine loan secured by equity interests in eleven hotels. At the same time, and on a dual track, coordinated a Uniform Commercial Code (“UCC”) Article 9 sale of the underlying collateral. Our role included assisting the client in the proper marketing of the asset under the requirements of UCC Article 9, framing the Terms of Sale, notice and advertising compliance, and structuring the UCC sale process to comply with current developing case law during the Covid crisis. The UCC sale resulted in a purchaser being identified for the loan. We then, within a period of less than a week, (i) negotiated and closed the sale of the defaulted loan; and (ii) closed on the forbearance/extension of the loan on behalf of the loan purchaser.

  • National Museum (Bankr. E.D. Pa. Case No. 20-11285)

    Represented a New York bank as majority bondholder on a $32 million debenture of secured debt in chapter 11 case of non-for profit museum located in Philadelphia. Bondholders were beneficial holders of the Indenture Trustee’s lien on the real estate as well as personal property of the Debtor. The chapter 11 case was filed to stay the foreclosure case we initiated. MH&H is currently is litigating with the Debtor over the value of the real estate collateral as well as various issues related to the Debtor’s proposed cramdown plan.

  • Multi Family Real Estate Portfolio

    In 2020, represented a multi-billion dollar financial institution as Mezzanine Lender in litigation regarding borrower’s challenge to the called events of default and seeking an injunction of the UCC Article 9 sale process instituted. Took over for prior counsel, conducted discovery, defended borrower’s motion for summary judgment, and cross moved for summary judgment on behalf of the client Mezzanine Lender.

  • Commercial Mixed Use NYC Property

    In 2020, represented a private distressed debt fund in the purchase of both a senior secured first mortgage loan and separate mezzanine loan. Upon acquisition of the both loans, worked with the client team to develop an enforcement strategy including standing still on the mortgage loan and engaging in a UCC article 9 sale of the pledged mezzanine interest. Our role included assisting the client in the proper marketing of the asset under the requirements of UCC Article 9, framing the Terms of Sale, notice and advertising compliance, and structuring the UCC sale process to comply with current developing case law during the Covid crisis.

  • Terravista Partners-Pecan Partners et al. (Bankr. W.D. Tex. Case No. 19-51100)

    MH&H represented a New York distressed debt fund in connection with a July 2019 acquisition of aggregate $30 million non-performing mortgage loan on four (4) multifamily properties located in San Antonio, Texas which. Foreclosure proceedings were commenced but ultimately stayed by a chapter 11 case filed by the property owners. Following acquisition of the debt, MH&H successfully negotiated the terms of the Debtors’ cash collateral use and obtained entry of a court order which provided for (x) Debtors’ acknowledgment and court allowance of the amount, validity and extent of the lender’s claims and liens and (y) case milestones, with the use of cash terminating and stay relief being granted upon Debtors’ failure to meet any deadline associated with a case milestone. We successfully positioned the chapter 11 cases for a sale process involving all four (4) properties and the transaction closing in March 2020 at which the lender was paid in full, including payment of attorneys’ fees and post-petition interest at the default rate from bankruptcy filing through closing.

  • In re 4218 Partners LLC (4218 Partners LLC v. Maguire Ft. Hamilton LLC), 2020 WL 477815 (2020)

    Represented the secured lender in an adversary proceeding commenced by a commercial real estate chapter 11 case debtor. The debtor claimed that an $8,250,000 secured loan transaction was the result of economic duress. The debtor sought to both avoid the mortgage securing the underlying loan as well as subordinate the claims of the lender. The court granted our motion to dismiss the debtor’s claims of economic duress with prejudice, and dismissed the equitable subordination claims, finding that the debtor had failed to state a claim.

  • Signature v. Neighbors

    Successfully prevailed in enforcing a floating forum selection clause for Signature Financial LLC, as part of Signature’s action to recover outstanding sums due on multiple equipment lease agreements against multiple lessees. The action, originally brought by Signature in state court, was removed by the defendants to federal court in the Southern District of New York. Defeated the lessees’ motion to dismiss based on lack of personal jurisdiction or, in the alternative, to transfer venue to the Southern District of Texas, where the defendants were located and where the leased equipment was being utilized. Secured crucial precedent upholding the enforceability of a floating forum selection clause in financing transactions and later prevailed at the summary judgment stage, securing an award for the client of $1.3 million dollars plus all of their attorneys’ fees and costs.

  • In re: Curative Health Services, Inc. et al.

    U.S. Bankruptcy Court, Southern District of New York. Represented General Electric Capital Corporation as the senior secured lender and debtor in possession lender in the pre-packaged Chapter 11 filing of Curative Health Services, Inc., et al., providers of specialty infusion and wound care management services. Negotiated and documented $50,000,000.00 debtor-in-possession credit facility.

  • In re: Homesteads at Newtown, LLC

    U.S. Bankruptcy Court, District of Connecticut. Represented first mortgagee and cash collateral lender in the Chapter 11 filing of this assisted living healthcare facility. Addressed and litigated all cash collateral, foreclosure, stay relief and operating trustee appointment issues. Coordinated taking title to facility after successful litigation and represented the seller in connection with the subsequent sale.

  • The Captus Group

    Represented the senior secured lender of this failed vehicle lessor in connection with over $200,000,000.00 of vehicle lease paper including the negotiation of management and liquidation agreements, remarketing and servicing agreements, and portfolio administration. Coordinated representation of all other secured lenders for joint portfolio administration.

  • IC Works, Inc.

    Negotiated out-of-court forbearance, restructuring and inter-creditor agreements on behalf of unofficial committee comprised of bank, asset-based and equipment finance lenders respecting secured and lease finance debt with this Silicon Valley manufacturer. Addressed and negotiated, on behalf of the group, inter-creditor issues with receivables and inventory lender, Silicon Valley Bank.

  • Not Disclosed Under Confidentiality

    Successfully represented funding source in private label program where funding source financed, through non-recourse assignments, a lessor. Successfully defended anti-trust claims, prosecuted fraudulent portfolio transactions on a national basis and prosecuted pre-judgment attachment in aid of enforcement of fraudulent transactions.

  • 240 Church et al.

    Represented DIP lender in a multi debtor healthcare case of several related assisted living facilities, negotiated post-petition financing arrangements and plan treatment.

  • American Tissue Corp.

    U.S. Bankruptcy Court, District of Delaware. Represented unofficial lessor committee of People’s Capital, Citicapital, Capital One, US Bancorp and Atlantic Bank in a highly contested Delaware bankruptcy for claims exceeding $20,000,000.00. Successfully negotiated sale of assets, administrative priority claims and hostile former management claims.

  • Luis Electrical Contracting Corp.

    Supreme Court of the State of New York. Litigated all replevin and fraud claims for Xerox Credit Division arising out of lease transaction with this New York City contractor. Investigated claims of non-existent or missing collateral. Researched and tried case against Lumbermans Mutual Casualty Co. on the theory of recovery under lessee’s insurance policy for mysterious disappearance of collateral. Prevailed at trial with judgment affirmed on appeal resulting in recovery by lessor for value of collateral.

  • In re: Gurneys Inn Resort & Spa, Ltd.

    215 B.R. 659 (Bankr. E.D.N.Y. 1997) where we represented the first mortgage lender in a Chapter 11 filing of an ocean-front timeshare resort in cases of first impression in New York for timeshare bankruptcy cases.

  • In re: Second Phoenix Corp.

    U.S. Bankruptcy Court, Southern District of New York. Representation of secured lender in the Pre-Chapter 11 acquisition of secured debt from a NY bank commenced an Article 9 foreclosure of the equity pledge and represented the lender in the resulting Chapter 11 real estate entity filing. Addressed all case collateral and plan negotiations, dismissal litigation, and 363 sale process resulting in a structured dismissal following asset sales realizing full payment of principal, interest and fees to secured lender.