McNutt Law Group’s insolvency practice focuses on providing superior legal services to its clients in all phases of insolvency. We represent troubled companies in insolvency workouts outside of bankruptcy and purchasers of assets of troubled and bankrupt entities. We represent creditors’ committees, debtors, creditors, post-confirmation entities, and trustees, as well as clients in business transactions, commercial litigation matters and bankruptcy litigation matters. We specialize in the types of litigation that commonly arise in bankruptcy: contested plan confirmations, fraudulent transfer actions, preference actions, relief from stay actions and other contested matters.
- e-Commerce/ Technology
- Restaurants/ Services Industry
- Real Estate Issues/ Commercial Landlord: enant, Acquisition, Foreclosure, and Other Areas
- Patents/ Other Intellectual Property
In re At Home
Represented Official Committee of Unsecured Creditors and Post Confirmation Creditors Trust in one of the largest bankruptcies ever filed in the Northern District of California. Confirmed a plan of liquidation within 12 months of filing that funded a plan paying 90 cents on $ in creditor claims. Distribution to unsecured creditors was twice the project distribution under the plan of reorganization.
Represented the Committee of Unsecured Creditors and the Post Confirmation Estate Representative of Debtor’s reorganized estates. During bankruptcy, MLG played a significant role in the sale of the Debtor’s technology platform, and resolved disputes with real and personal property lessors, secured creditors, and WARN Act claimants. Post confirmation, MLG worked closely with the Estate Representative in the administration of a portfolio of 1,500 claims, the liquidation of assets, and the prosecution of avoidance action claims. Distributions to creditors approached 45 cents on the dollar.
In re Round Table Pizza, Inc.
Represented Debtor in the largest Chapter 11 Case filed in the Northern District of California in 2011. Worked with management to keep and maintain current company structure including the employment of 2,500 people, operation of 110 company owned stores, and the management of 350 franchises. MLG successfully confirmed a plan within 10 months that paid creditors 100% of their claims. MLG also worked to renegotiate dozens of commercial property leases. At the closure of the case, Round Table was left completely intact, with equity in place, and with a renegotiated debt structure.
In re C.C. Myers
Representation of a Chapter 7 Trustee in large heavy construction and bridge builder case. Distribution are expected to be over $60 Million dollars in claims (the case is still currently being administered). MLG was key in negotiating the sale of the Debtor’s principle assets which included shares of stock in a closely held corporation. MLG also worked with related tax counsel to resolve complicated tax issues regarding 36 related entities.
In re Atman Hospitality, Inc.
Represented Chapter 11 Trustee in case involving a 140 room Green Hotel Resodt Property outside of Shasta County. Worked with the Trustee to gain control of operations, and retained a skilled hotel operator to stabilize and improve cash flow. These improvements directly led to the sale of the Resort within 6 months without any additional cash infusions from lenders. After the sale, MLG confirmed a plan to liquidate the remaining assets with a projected distribution of 20 cents on the dollar to all creditors.
In re CMR
Represented the Official Committee of Equity Security Holders in the combined 3 bankruptcies of three real estate investment funds with total investments of $180 Million dollars from over 800 invetstors. MLG was key in gaining and keeping control of the bankruptcy cases nearly 2 years after their initial filing. After a plan was unable to be confirmed, MLG facilitated the appointment of a Chapter 11 Trustee to maximize the administration of the estate and the sale of property. MLG filed a class action lawsuit against the former manager of the of fund on behalf of the funds and its investors and obtained a large settlement from the insurer. This settlement recovered 85% of the available insurance proceeds and brought significant proceeds back into the estate, allowing the first distribution of any kind of to the investors.
Represented Official Committee of Unsecured Creditors in a technology bankruptcy. MLG facilitated and directed the sale of the company as a going concern. MLG was successfully able to distribute money to the creditors after the negotiation of insider claims. A key factor in the success of distributing money to creditors was MLG’s ability to reduce a $12 Million dollar secured claim filed by a large international legal firm.
In re Peacock Gap
Represented Debtor in a large golf course property case. MLG was able to keep the golf club operating throughout the Chapter 11 process. MLG effectively deleveraged business through litigation over the amount of the secured debt owed by the Debtor. MLG sold the business as a going concern. All of this with little disruption to the business and while maintaining the going concern value of the business.
In re Krishan Corp.
Representation of Chapter 11 Trustee appointed 2 years into the existing bankruptcy case. MLG worked with the Trustee to take control and operations of a 55 room hotel located in San Jose, CA. The subsequent operator improvements substantially increased the sale price of the hotel, allowing MLG to successfully market and auction the hotel within 6 months of the Trustee’s appointment. After the sale of the hotel, the projected return to creditors is 100%.