Bankruptcy & Creditors’ Rights

The Hirschler Fleischer bankruptcy practice team has emerged as one of the Mid-Atlantic Region's leading bankruptcy groups and includes two judicial law clerks, a past chair of the Bankruptcy Section of the Richmond Bar Association, a past president of the Maryland Bankruptcy Bar Association, a former bankruptcy trustee for the District of Columbia, and a past chairman of the Business Bankruptcy Committee of the District of Columbia Bar. In addition to handling cases throughout Virginia, we also frequently appear in the Bankruptcy Courts of Maryland and the District of Columbia and have represented clients in bankruptcy proceedings throughout the county, including Delaware, New York, Texas, Arizona, and California.  Our group regularly draws from the expertise of top attorneys from other practice areas within the firm, including real estate, corporate, mergers, employment, tax, and litigation. With decades of bankruptcy experience, combined with the depth and diversity of one of Virginia's oldest and largest law firms, we provide creative, results-oriented, cost-efficient representation to a wide variety of clients, including troubled businesses and business owners, lenders, creditors committees, bankruptcy trustees, and other key constituents.

Services

Chapter 11, Business Restructuring, and Workouts

We have represented over 75 Chapter 11 debtors in the past decade and have obtained confirmed plans of reorganization or liquidation in the great majority of those cases. We have also regularly represented borrowers and lenders in out-of-court restructurings and commercial workouts. Our business reorganization and restructuring clients have included real estate developers, technology companies, manufacturers, government contractors, petroleum wholesalers and retailers, a national operator of medical testing facilities, a 25-store retailer of cellular devices and services, high net worth individuals, farm operators (Chapters 11 and 12), physicians, and an array of retailers, service providers, and other enterprises with annual revenues ranging from $2,000,000 to in excess of $100,000,000.  Representative engagements include:

  • Health Diagnostic Laboratory
  • IBCS Mining
  • Tuskeena Wytheville Center
  • Roadrunner Enterprises
  • S. A. Medical of Virginia
  • River City Renaissance
  • Campbell Graphics, Inc.

Our experience and creativity enable us to deliver superior, tangible results in the form of confirmed plans, going-concern sales, out-of-court restructuring agreements, and loan modifications. Our track record of favorable results sets us apart from other firms.

Official Committees and Other Creditor Representations

The bankruptcy group has served as counsel to numerous committees of unsecured creditors. We have served as committee counsel in Chapter 11 cases involving a building supply business with annual sales exceeding $100 million, a dairy production plant, an industrial processing firm, an auto dealer, construction firms, a former rubber manufacturer, a wholesaler of fiber optic cable, loan companies, and several retailers.  Representative engagements include:

  • Shenandoah Family Farms Cooperative
  • Parham Construction Company

We represent a variety of other creditor entities in bankruptcy and workout settings. These include banks and other lenders, principals, directors, officers, and majority shareholders, real estate and equipment lessors, vendors, and general unsecured creditors. We have represented significant parties in the following Chapter 11 cases:

  • Outer Harbor Terminal, LLC
  • Alpha Natural Resources
  • Patriot Coal Corporation
  • Morris|Schneider|Wittstadt
  • Xinergy
  • James River Coal Company
  • Circuit City Stores
  • LandAmerica Financial Group
  • Bear Island Paper Company
  • Prospect Homes
  • S&K Famous Brands
  • Movie Gallery
  • Smurfit-Stone
  • Qimonda
  • Heilig-Meyers
  • Fas Mart Convenience Stores.

Bankruptcy and Creditors' Rights Litigation

We routinely pursue and defend a wide array of claims and disputes in the Bankruptcy Courts under all chapters of the Bankruptcy Code and in state and federal trial courts throughout the Mid-Atlantic area. These matters include preference actions, fraudulent transfer and other avoidance litigation, dischargeability complaints, plan objections, lien disputes, claim objections, subordination actions, cash collateral disputes, debtor-in-possession financing matters, enterprise valuations, section 363 asset sales, and secured creditor enforcement actions.

Trustee Representations

We have served as Chapter 11 trustees and often represent Chapter 7 and 11 bankruptcy trustees and liquidating trustees in complex business and personal bankruptcy cases. When serving as a trustee or representing a trustee, our tasks normally include pursuit and liquidation of assets, avoidance and recovery of preferential and/or fraudulent transfers, and related matters including plan confirmation and lien avoidance matters. Our tasks have included asset sales, pursuit of claims against former principals, claims solicitation, and formulation and implementation of liquidation plans.

Representation of Individual Debtors

We routinely represent individual clients with business-related debt under all Chapters of the Bankruptcy Code. These cases are frequently more complex and challenging than the routine “consumer” cases, and typically involve significant assets, large claims, and difficult legal issues. Whenever possible, we strive to keep individual clients (as well as our business clients) out of bankruptcy by developing and implementing creative workout and debt settlement strategies as well as asset protection strategies.