Practice Contact

James E Bird

Practice Area Chair

T. 816.360.4343

Related Department

Financial Services

Bankruptcy and Financial Restructuring

The Bankruptcy and Financial Restructuring Law group at Polsinelli Shughart PC has a strong reputation and history of success in business loan workouts, Chapter 11 business reorganizations, out-of-court restructurings, including assignments for the benefit of creditors, bankruptcy and insurance company insolvencies.

Our attorneys have represented clients nationally and regionally in a broad spectrum of industries, including real estate development, retail, agricultural cooperatives, airline, trucking and transportation, manufacturing, health care, insurance, nonprofit, utilities, steel and telecommunications. We have played a significant role in the largest bankruptcies in Missouri, Kansas, New York and Delaware. Our bankruptcy and loan enforcement/creditors’ rights attorneys have appeared in courts in more than 30 states.

Our hands-on experience comes from decades of work on some of the best-known bankruptcy cases in the country. Representing significant interests involved in such cases as Lehman Brothers, SemCrude, Pliant Corporation, NV Broadcasting, DBSI, Inc., American LaFrance, Farmland Industries, Payless Cashways, Kroh Brothers Development Company, Nationsway Transport Service, Inc., Preston Trucking Company, Inc., American Freight Systems, Atchison Castings, Wire Rope, Duckwall-Alco Stores, Vanguard Airlines and Food Barn Stores, our bankruptcy attorneys have handled matters in some of the country’s most complex cases, involving hundreds of millions of dollars. We have represented bidders and/or purchasers of significant bankruptcy assets, including the Enron headquarters building, wireless communication services in WorldCom and restaurant chains.

Our presence in Delaware enhances our ability to provide clients with sophisticated, state-of-the-art bankruptcy and financial restructuring advice in one of the preferred forums for complex chapter 11 cases at an attractive Midwestern price structure. Our Delaware office focuses on serving as counsel to the firm’s existing clients with matters pending in Delaware, as well as serving as Delaware local counsel to other referring law firms, conflicts counsel, special counsel, avoidance action/contingency fee counsel and claims administration counsel.

The bankruptcy and financial restructuring law group has represented the following types of parties in bankruptcies and workouts:

Debtors and debtors in possession
Secured and unsecured lenders
Unsecured creditors committees
Debtor in possession lenders
Second lien and mezzanine lenders
Asset purchasers
Indenture trustees, debenture and bondholders
Bondholder committees
Employee committees and WARN Act claimants
Shareholders and equity committees
Landlords
Private equity firms and hedge funds

Our representation of such diverse interests gives us the 360-degree perspective necessary to handle all types of bankruptcy and financial restructuring issues. We understand the complexity from all sides and can represent your interests to protect and maximize the value of your assets.

Notable Experience

Insurance Insolvency Representations

The Financial Services Department has represented the rehabilitator, liquidator or receiver in the following insurance company insolvencies:

Commonwealth General Insurance Company/Heart of America Fire & Casualty Company
Farm & Ranch Insurance
Medallion Insurance Company
Mission Insurance Company
Missouri General Insurance Company
Mutual Benefit Life Insurance Company
National Colonial Insurance Company
Professional Medical Insurance Company/Professional Mutual Insurance Company Risk Retention Group
Town & Country Insurance Company

Other Significant Chapter 11 Bankruptcy Representations

TransWorld Airlines, Inc. - Represented the City of St. Louis, Missouri, as to lease and gate issues involving TWA’s domestic hub operations at Lambert – St. Louis International Airport.
Pester Refining Company - Petroleum refinery affiliate in a vertical petroleum refining and distribution group The firm acted as special bankruptcy counsel to the Kansas Department of Health and Environment in bankruptcy cases with significant environmental issues. This reorganized entity held a Superfund site for which KDHE is the lead agency.
Bill’s Coal Company – Multi-state coal mining company. Liabilities in excess of $28 million. The firm acted as special bankruptcy and insurance receivership counsel to the Kansas Department of Health and Environment. In this liquidation case the reclamation of an abandoned strip mine has been significantly complicated because the major secured lender was placed under FDIC jurisdiction and the reclamation surety was placed in Indiana insurance.
The Midwestern Companies/Titan Energy, Inc.- Ethanol fuel manufacturer. Liabilities in excess of $25 million. The firm represented several large mechanic lien holders.
Revco, D.S. - National drug store chain with over 2,000 stores. Liabilities and assets in excess of $1 billion. The firm represented a national developer and landlord on lease assumption - rejection issues for over 30 properties.
Aviation Systems, Inc. - Manufacturer of electronic navigational equipment for airplanes. The firm represented the major secured lender whose indebtedness was guaranteed by the Export-Import Bank of the United States.
Martin Luther King, Jr. Memorial Hospital - A 100-plus bed, acute care hospital. Debts in excess of $12 million and assets in excess of $9.5 million. The firm represented the management consulting firm engaged to operate the hospital and prepared the confirmed plan of reorganization and disclosure statement in this case.
Organized Living, Inc. – Represented landlords in bankruptcy of national retailer of storage and organizational products for homes offices.
Winn-Dixie, Inc. – Represented numerous landlords in lease assumption, assignment and rejection issues in bankruptcy of one of the largest national grocery store chains.
Weld Wheels Industries, Inc. (II) – Represented the principal and primary shareholder of Chapter 11 manufacturer and distributor of premium after market automobile, light truck, racing and sport wheels. Case culminated in a competitively bid Section 363 sale, generating in excess of $22 million to the debtor’s creditors.

Significant Delaware Representations

Barcalounger and American of Martinsville- Co-counsel to the chapter 11 debtors and debtors in possession
Eigen, Inc.- Lead counsel to chapter 11 debtor and debtor in possession
Crossroads Wireless- Lead counsel to the official committee of unsecured creditors, and its successor the liquidating trust, in the chapter 11 cases in the Western District of Oklahoma
Coastal Concrete Southeast- Lead counsel in its successful out-of-court restructuring to solidify its balance sheet and to improve future liquidity
Hotel Equity V, LLC- Co-counsel to debtor in its Chapter 11 case pending in Delaware Bankruptcy Court, as well as matters pending before the Delaware Chancery Court and District Court
Visteon Pension Plan Participants- Co-counsel to ad hoc committee
NV Broadcasting, LLC – Co-counsel to the chapter 11 debtors and debtors in possession in their pre-negotiated restructuring of $600M in debt.
DxTech, LLC – Lead counsel to chapter 11 debtor who is a specialized medical supply company.
White Energy (Ethanol), Inc. - Co-counsel to official committee of unsecured creditors.
Big Ten Tires – Co-counsel to the official committee of unsecured creditors in chapter 11 filing of regional tire and auto parts supplier.
SemCrude, L.P. – Co-counsel to Louis J. Freeh, Esq., former Director of the FBI, as court-appointed Examiner appointed to investigate fraud with respect to the Chapter 11 cases of SemCrude, L.P.
Pliant Corporation (2009) – Co-counsel to the official committee of unsecured creditors in second chapter 11 filing of premier plastics manufacturer.
DBSI, Inc. – Lead counsel to several tenant-in-common lenders in jointly administered Chapter 11 cases of approximately 250 TIC properties. Polsinelli Shughart has been integral in protecting its clients rights with respect to the use of their cash collateral and preserving the value of their clients’ assets.
American LaFrance, LLC – Polsinelli Shughart continues to represent American LaFrance as a Reorganized Debtor and is currently overseeing the claims administration process, state court litigation and general corporate matters on behalf of American LaFrance.
JHT Holdings, Inc. – Represented equity holders that purchased debtor trucking company as part of a pre-negotiated Chapter 11 plan. Polsinelli Shughart currently represents the Reorganized Debtor and is overseeing the claims administration process.
American LaFrance, LLC- Represented Chapter 11 debtor who is the oldest manufacturer of fire trucks and emergency vehicles in the United States. The Debtor was successful in confirming its plan of reorganization after going down a dual-track of plan confirmation and sale of substantially all of its assets. The Debtor successfully emerged from bankruptcy via an exit facility of more than $200 million.
Amp’d Mobile, LLC- Co-counsel to the official committee of unsecured creditors in chapter 11 case of national cellular telephone service and content provider.
Jake’s Dog House- Attorneys at Polsinelli Shughart represented chapter 11-debtor franchisee that managed a chain of retail stores focusing on the sale of high-end pet products. The Debtor successfully emerged from Chapter 11 with scaled back retail operations and a successful eCommerce business.
The LoveSac Corporation- Attorneys at Polsinelli Shughart represented Chapter 11 debtors that manufactured high-end specialty furniture. Upon confirmation of the Debtor’s liquidating plan, attorneys at the firm assisted the Liquidating Trust in its prosecution of avoidance actions and the claims administration process.
Trump Hotels and Casino Resorts (THCR)- Attorneys at Polsinelli Shughart represented certain shareholders of THCR and were successful in getting an official committee of equity shareholders appointed by the United States Trustee. The equity committee was able to secure a significant return to equity under THCR’s plan of reorganization.
AmeriKing, Inc.- Attorneys at Polsinelli Shughart represented franchisee of 300+ Burger King restaurants in their Chapter 11 cases. The Debtors successfully sold substantially all of their assets in the bankruptcy via numerous 363 sales.
Woodworkers Warehouse, Inc.- Attorneys at Polsinelli Shughart represented Chapter 11 debtor who manufactured and sold wood working supplies. The Debtor sold substantially all of its assets in the bankruptcy and confirmed a plan of liquidation.

Polsinelli Shughart’s Delaware office is also counsel to several Chapter 7 debtors, including LakeWest Group, LLC, Consolidated Bedding/Spring Air Mattress and Ark II Manufacturing, LLC.

Bankruptcy Litigation

Our attorneys are experienced in all aspects of bankruptcy litigation and procedures related to adversary proceedings. Our experience includes litigation and negotiation of issues involving lien avoidance, abstention, involuntary bankruptcy petitions, adequate protection, use of cash collateral, stay relief, secured claim valuation, debtor in possession financing, assumption and rejection of executory contracts and unexpired leases, licenses of intellectual property, proofs of claim, priority disputes, set off and recoupment, subordination, dischargeability, reclamation, turnover, preferences, fraudulent transfers, trustee or examiner appointment, rejection of collective bargaining agreements and/or retiree benefit agreements and plan confirmation (including competing plan litigation).

Committee and Trustee Representations

Transportation

Nationsway Transport Service, Inc. - In this Arizona bankruptcy case, Polsinelli Shughart represented the Official Committee of Unsecured Creditors. This case involved three Debtors with aggregate assets of approximately $80 million, while the total liabilities were in excess of $100 million. The firm was involved during the case in the disposition of (i) over $20 million in rolling stock and other equipment, (ii) approximately $20 million in real estate, and (iii) the rejection or sale of nearly a hundred non-residential real property leases.
Preston Trucking Company. Inc. - In this Maryland bankruptcy case the firm represented the Official Committee of Unsecured Creditors. The firm was involved in a bulk sale of the Debtor’s real estate for the purchase price of approximately $68.4 million, and participated in the auction of approximately 6,200 pieces of rolling stock as well as other equipment. The total potential liabilities of Preston were estimated at over $150 million, with total assets of approximately $96 million.
American Freight System, Inc. - One of the largest trucking company bankruptcies in the United States. The firm represented the Official Unsecured Creditors’ Committee. The firm was involved in the disposition of (i) approximately $62 million in rolling stock and miscellaneous equipment, (ii) $1 million in office furniture and equipment, (iii) more than $50 million in receivables and (iv) over 60 parcels of real property valued in excess of $45 million. The case returned in excess of 130 percent on general unsecured creditor claims.
Campbell’s 66 Express - Regional trucking company with annual revenues in excess of $90 million. The firm represented the Official Unsecured Creditors’ Committee in this liquidation proceeding.
Mid-American Lines, Inc. - Publicly traded Midwest regional truck line employing over 450 persons. Liabilities were in excess of $15 million. The firm represented the Official Unsecured Creditors’ Committee.
Manley Truck Lines, Inc. - Regional trucking company. The firm represented the Official Unsecured Creditors’ Committee.
H & S Motor Freight, Inc. - Missouri trucking company. The firm represented the Official Unsecured Creditors’ Committee and also later served as counsel for the Trustee.
Global International Airways, Inc. - Cargo and charter airline with both domestic and international service, employing over 400 persons at the time of filing. Liabilities were in excess of $22 million. The firm represented the Official Employees Committee and later acted as Official Disbursing and Liquidating Agent in this Chapter 11 proceeding.

Real Estate

Phillips House Associates, Ltd. - Major Kansas City hotel. Liabilities were in excess of $12 million and assets were approximately $8.5 million. The firm represented the Official Unsecured Creditors’ Committee.
Chicago H&S Hotel, LLC – N.D. of Illinois Chapter 11 case, where Polsinelli Shughart represents the Official Committee of Unsecured Creditors of a downtown Chicago 437 guest room, full service hotel.

Agricultural Cooperatives

Farmland Industries, Inc., et al - These entities comprise the largest agricultural cooperative business in the United States. Farmland and its affiliated entities (a) manufactured and marketed fertilizer, (b) operated a petroleum refinery, (c) operated an integrated food and food processing business, (d) engaged in the wholesale and retail farm supply business, and (e) engaged in the transportation brokerage business. Annual revenues in 2001 were $11.8 billion. Assets and liabilities over $2 billion. The firm represented the Official Bondholders Committee holding over $580 million in debt. Later, we represented the Liquidating Trustee in the prosecution of several hundred preference actions.

Service and Retail

Payless Cashways. Inc. (I and II) - At the time of its first Chapter 11 filing, the fourth-largest retailer in the home improvement and business supply industry with 1996 sales of approximately $2.6 billion. The Debtor operated 194 building material stores in 22 states, with 16,700 employees. The firm served as co-counsel to the Official Unsecured Creditors Committee in Case I and served as sole committee counsel in Case II. Representation included advice on marketing and sale of tens of millions of dollars of real estate.
EJ’s Shoes – Co-counsel to official committee of unsecured creditors of Midwestern apparel provider.
Travel Investors, Inc. - The Debtor provided travel packages and travel memberships to tens of thousands of customers. The firm represented the Trustee in the liquidation of this entity.
Parkview Gem of Maryland - National chain of drug stores. The firm represented the Trustee.
J.B.’s Big Boys of Kansas City, Inc. - Midwestern-based chain of family restaurants. The firm represented the Official Unsecured Creditors’ Committee.

Industry/Manufacturing

Wire Rope Corporation of America, Inc. - Largest producer of wire rope in North America, with production exceeding 75,000 tons per year. Sales of $135 million per year. Assets totaled $73 million. The firm represents the Official Unsecured Creditors Committee, which case resulted in a confirmed plan of reorganization and sale to a third-party buyer preserving nearly 1,000 jobs.
Markay Plastics, Inc. - Manufacturer of blow-molded plastic containers. The Debtor’s scheduled assets were nearly $16.2 million. The firm represented the Official Unsecured Creditors Committee.
Grant Industries - An aluminum door-slide manufacturer. Members of the firm represented the Creditors’ Committee in the negotiation of a $14.5 million asset purchase of the Debtor, which made available millions of dollars for unsecured creditors and saved hundreds of jobs for plant workers in Harrisonville, Mo.
Stevie Togs, Inc. - A garment/apparel manufacturer with over 150 employees. The firm represented the Official Unsecured Creditors’ Committee.
Junge Baking Company - A major regional bakery. The firm represented the Official Unsecured Creditors’ Committee.
Broadway Industries - A national manufacturer and distributor of decorative brass hardware and plumbing fixtures for use in residential and commercial application throughout the United States, Canada and other foreign countries. Liabilities in the case were in excess of $7.5 million. The firm represented the Official Unsecured Creditors’ Committee.

Communications

Crossroads Wireless, Inc. and Crossroads Wireless Holding, LLC - Currently serve as lead counsel to the official committee of unsecured creditors in the Western District of Oklahoma in chapter 11 filing of start-up wireless carrier.
KSAS – Channel 24, Topeka, Kan. - Members of the firm represented the Creditors’ Committee, which filed its own plan and solicited and brought to the case a competing bidder who submitted an offer to buy the station for more than $6.5 million, resulting in unsecured creditors ultimately receiving approximately double what they would have received under the Debtor’s original plan.
Davenport Communications - Television station. Represented the Committee in this Iowa Chapter 11 case. The Committee played an active role in negotiation of a consensual plan in the case.

Debtor Representations

Real Estate

Kroh Brothers Development Company - National real estate developer holding over 130 commercially developed properties. Listed assets and liabilities each amounted to more than $750 million. The firm represented the parent and affiliated corporations and limited partnerships in 41 related cases, and currently represented the liquidating holding entity operating under the plan of reorganization.
Overland Park Merchandise Mart and Convention Center - 600,000-square-foot real estate development located on 37 acres. Successfully reorganized the Debtor partnership in the Chapter 11 reorganization. Liabilities of approximately $59.6 million. The major secured creditor was the Kansas Public Employees Retirement System.

Transportation

Vanguard Airlines, Inc. - Publicly traded company with 1,000 employees operating a passenger airline offering scheduled jet service from its hub located in Kansas City, Mo. The firm represented the Debtor. Assets totaled $39 million and liabilities $95 million.
Braniff Airlines, Inc. - National air carrier operating in the continental United States. The firm acted as special counsel to the Debtor for Kansas City hub-related issues. This included the negotiation of leases on gates at Kansas City International Airport.

Health Care

First Humanics Corporation - Bond-financed not-for-profit corporation operating 22 nursing homes in five states with 3,000 employees. This was one of the largest not-for-profit corporations in the Midwest to file a Chapter 11 proceeding. Liabilities were approximately $98 million. The firm successfully represented the Debtor in confirming a plan of reorganization, which involved restructuring complex bond financing to ensure that the bonds remained tax-exempt.
Kansas Psychiatric Institutes - Owner/operator of a 56-bed licensed psychiatric hospital in Overland Park, Kan., commonly known as the Kansas Institute. The firm assisted in the orderly disposition of these facilities.

Service, Distribution and Retail

SiriComm, Inc. – Provider of trucking and communications equipment to the over-the-road trucking market. Debtor has a network of over 480 Wi-Fi hot spots that deliver wireless Internet access along major highways in 44 states.
Lady Baltimore Foods, Inc. – Publicly traded food distributor with annual historical sales of $150 million. The firm represented the Debtor in the liquidation of its business and litigation with the pre-petition purchaser of part of its business. Case resulted in a 100 percent plus distribution to unsecured creditors.
CenCor, Inc. - Publicly traded holding company whose principal subsidiary is engaged nationally in the consumer loan business. The firm represented the Debtor, with debt in excess of $30 million, in a successful prepackaged bankruptcy plan of reorganization.
Krigel’s, Inc. - Operated 21 jewelry stores in four states within six metropolitan areas. The firm assisted the Debtor in confirming a pre-solicited, prepackaged plan of reorganization within 46 days of the petition’s filing.
Inter-City Beverage/Metro Distributors - Large metropolitan beer, wine, spirits and non-alcoholic beverage distributor with assets in excess of $23 million. Proceeding brought to preclude termination of Debtors’ distribution agreements and preserve going-concern value. Business was sold to a third-party buyer - preserving numerous jobs.
TFC International, Inc. (formerly Topsy’s International, Inc.) - Publicly traded financial and service company. The firm represented the Debtor that successfully confirmed its plan of reorganization.
Paladin Computer Systems, Inc. - Computer software subsidiary of a publicly traded company. The firm represented the Debtor that successfully confirmed a plan of reorganization.
Reproduction Systems, Inc. - Copying and litigation support company. The firm represented the Debtor that successfully confirmed a plan of reorganization.
Wrenn Insurance Agency of Missouri, Inc. - Large privately owned insurance agency. Claims in the case were in excess of $6 million.
Tarkio College - Private college established in 1883. Claims were in excess of $10 million.

Industry/Manufacturing

Peterson Machine Tool, Inc. - Long-established manufacturer and distributor of automotive and industrial engine rebuilding machine tools and equipment. This ESOP-owned entity employed 46 people in two locations and Debt was in excess of $10 million. Advised Debtor in successful sale of business as a going concern.
Didde Web Press Corporation – Forty-five-year-old manufacturer of offset printing and finishing systems serving the non-catalog, direct mail, large commercial and specialty segments of the global printing and publishing market. Employing 135 people, this entity had debt in excess of $20 million. The business was sold through two separate Section 363 bankruptcy auctions generating $8.85 million for the sale of the Webtron/Zig Zag business and $10.3 million for Didde’s remaining business. Also advised Debtor in connection with pre-bankruptcy sale of Canadian subsidiary (including cross-border insolvency issues).
Phelps Technologies, Inc. - Metal stamping and assembly company that manufactured precision parts and assemblies for computers and other products. Assets were approximately $23 million in this case, in which the Debtor confirmed a plan of liquidation.
Amjo Infrared Dryers, Inc. - Manufacturer and distributor of infrared drying systems for the printing industry. Successfully confirmed a reorganization plan.
Standard Insulations, Inc. - Regional steel fabricator that constructed and installed asbestos products. Business terminated because of the logistics of defending several thousand products liability suits. The firm represented the Debtor in one of the first asbestos bankruptcy proceedings in the country, which including creating a claims handling process for distributing in excess of $17 million in insurance coverage.
Weld Wheels (I) – Wire wheel manufacturing company employing over 150 persons. Liabilities were in excess of $5 million. The firm represented the Debtor that successfully confirmed a plan of reorganization.
Wyeth Company - Regional hardware distribution company. Liabilities in the case were in excess of $6 million. The firm represented the Debtor.
Kuhlman Diecasting Company – Diecasting company that employed over 500 people with locations in Missouri and Kansas. Liabilities were in excess of $12 million. The firm represented the Debtor in the liquidation of the company’s assets under Chapter 11.
Columbian Oil and Gas, MLP et al. - Debtor’s counsel for 23 publicly and privately owned oil and gas ventures, including a large Master Limited Partnership. Assets in the case were in excess of $10 million.

Agriculture

Polo Grain Company, Inc. - Missouri grain elevator and grain distribution company. The firm represented the Debtor.

Purchaser Representation

Enron - Represented the successful bidder ($103 million) for Enron’s Houston headquarters building. (S.D.N.Y.)
WorldCom - Represented Sprint Communications Corporation and Sprint Spectrum L.P. in the bidding for WorldCom, Inc., et al’s wireless communication services via MMDS, MDS, ITFS and WCS spectrums (S.D.N.Y.). The successful bidder obtained these assets for approximately $144 million.
Creative Restaurant Management, Inc. - Represented the successful purchaser of 19 restaurants including the chains of Fred P. Ott’s, Annie’s Santa Fe, Plaza III, Figlio, Hogates, etc. in a more than $20 million transaction.
Yellow Cab of Kansas City - Affiliated taxi companies controlling over 80 percent of the taxicab market in the greater Kansas City metropolitan area. The firm represented the buyer acquiring the assets from the bankruptcy estate.
Construction Design, Inc.- Acquired the assets on a going concern basis of this Kansas City industrial contractor out of U.S. Bankruptcy Court--N.D. California.

News

June 10, 2010	Experienced Phoenix Bankruptcy Attorney Mary Martin Joins Polsinelli Shughart to Meet Growing Needs of Clients
June 8, 2010	Polsinelli Shughart Expands Financial Services Capabilities With the Addition of Chicago Attorney Monika J. Machen
March 4, 2010	Polsinelli Shughart Welcomes Bankruptcy Attorney Jason A. Nagi To the Firm’s National Financial Services Department

Awards & Recognition

October 27, 2009

69 Polsinelli Shughart Attorneys Selected for Inclusion in Missouri/Kansas Super Lawyers® 2009

Another award? We’ll take it. Polsinelli Shughart PC is excited to announce that 69 of our attorneys are included in the Super Lawyers® 2009 list for Missouri and Kansas. Attorneys from all the major offices of Polsinelli Shughart in Missouri and Kansas are represented among the honorees. Only five percent of attorneys in Missouri and Kansas receive this honor. In addition, Chairman Emeritus R. Lawrence Ward is featured in a Q & A editorial article “Brilliant Careers,” interviewed about his most interesting cases and advice for young lawyers.