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Debtor Representations

Texas Rangers Baseball Club

Forshey Prostok, acting as conflicts counsel, represented the Texas Rangers Baseball Partners in a Chapter 11 case pending in Fort Worth, Texas.  Forshey Prostok was actively involved in facilitating an auction for the Major League Baseball Team and confirming a Plan of Reorganization.  The resulting auction and confirmation increased value for creditors and equity by over $100M.  The representation is one of the most unique and high profile bankruptcies ever filed in Texas.

Majestic Liquor Stores, Inc.

Forshey Prostok is acting as debtor’s counsel for Majestic Liquor.  Majestic Liquor operates forty-six retail stores and three wholesale locations with gross sales in excess of $150,000,000.  The firm is actively engaged in rejecting unprofitable store leases while allowing the chain to grow and increase revenues.  It is anticipated that Majestic Liquor will successfully reorganize in the first quarter of 2011.

Movie Gallery, Inc.

Forshey Prostok has been retained by the Board of Directors of Movie Gallery, Inc. to represent its interest in the bankruptcy filed in the Eastern District of Virginia.  As of the commencement of the bankruptcy, the Debtors were one of the largest North American home entertainment specialty retailers, and the Debtors operated approximately 2,600 retail stores located throughout North America.  In 2009, annual revenues of the Debtors exceeded $1.4 billion.

TXP Corporation

The firm has successfully reorganized TXP Corporation eliminating over 20 million dollars of debt while allowing the company to capitalize on its significant business relationships. The Debtor is an original design manufacturer (ODM) for the communications industry. 

 

Global Group Inc.

The firm has recently confirmed a Chapter 11 Plan of Reorganization restructuring existing bank and unsecured debt. The successful Plan allows the company to move forward as one of the largest and premier printing companies in the Metroplex. 

Heartland Automotive Holdings, Inc., et al

Forshey Prostok, as co-counsel for the Debtor successfully reorganized its business affairs. The Debtors, headquartered in Omaha, NE, are the largest franchisees of Jiffy Lube International, Inc. in the United States. The Debtors operate in excess of 400 quick-oil change stores in 20 states across the Eastern, Midwestern and Western United States. Their broad range of products and services provide customers with a convenient way to perform preventative maintenance and fluid replacement services on their vehicles. On January 16, 2009, Heartland confirmed a Plan of Reorganization providing 100% recovery to creditors.

TrueStar Barnett, LLC
Trinity Barnett, LLC

The client has successfully completed a sale of its oil and gas assets in the Barnett Shale, thus creating an opportunity for a dividend to unsecured creditors.

Blessed Are The Children Achievement Academy, Inc.

Forshey Prostok represents Blessed Are the Children Achievement Academy, Inc., in its Chapter 11 proceeding.  Blessed Are the Children operates three daycare centers providing critical childcare to lower income families.  Forshey Prostok has been instrumental in negotiating what is expected to be a consensual plan for the reorganization of Blessed Are the Children, which is expected to be confirmed in the fall of 2008.  Part of the Debtor's reorganization includes the commencement of operations of one of the daycare centers as an overnight shelter for children placed with Child Protective Services.  Without the Debtor's reorganization efforts, the opening of this night shelter would not occur. 

Medical Technology, Inc., d/b/a Bledsoe Brace Systems

Forshey Prostok successfully confirmed a plan of reorganization for Medical Technology, Inc., d/b/a Bledsoe Brace Systems, with assets of approximately $10 million. In achieving confirmation of the plan of reorganization, Forshey Prostok successfully negotiated with a judgment creditor holding a claim in excess of $6 million against the debtor.

Mirant Corporation

The firm acted as special conflict counsel and then bankruptcy counsel for Mirant Corporation, the largest bankruptcy filing in Texas history. FP assisted in confirming and implementing a successful Plan of Reorganization that completely satisfied creditors claims.

Mirant Bowline, LLC
Mirant Hudson Valley Gas Corp.
Mirant New York, Inc.

Forshey Prostok, as lead counsel for Mirant NY, Mirant Bowline and Hudson Valley Gas, successfully confirmed a plan of reorganization for the above-named debtors with assets in excess of $200 million. These debtors were excluded from the plan of reorganization confirmed in the Mirant Corporation case in December 2005 due to outstanding tax and environmental issues. Forshey Prostok successful negotiated a settlement of all the tax issues in November 2006. The plan of reorganization provided the same treatment to creditors of the three emerging entities as to similarly-situated creditors who received confirmation under the December 2005 plan—payment satisfying the claims of all creditors.

Mirant Lovett, LLC

On September 19, 2007, Forshey Prostok successfully confirmed a full-pay plan of reorganization for Mirant Lovett, a Mirant power generation subsidiary with scheduled assets exceeding $200 million. Prior to confirmation, Forshey Prostok was instrumental in bringing an 11-year property tax dispute regarding Mirant Lovett and Mirant Bowline to a favorable conclusion, which many had believed would be politically impossible short of costly and protracted litigation in multiple state and federal forums. Forshey Prostok additionally assisted Mirant Lovett in meeting various environmental and regulatory responsibilities which proved to be critical to Mirant Lovett’s emergence from bankruptcy.

Mirant NY Gen, LLC

Forshey Prostok filed and confirmed a separate plan of reorganization for Mirant subsidiary Mirant NY-Gen, which provided for the sale of the company to a third party purchaser. Forshey Prostok strategically structured the sale of the Mirant NY-Gen equity interests to allow various stages of bidding (stalking horse bid, additional qualifying bids and auction), and in this manner raised sufficient funds to pay all prepetition creditor claims in full. During the course of the Mirant NY-Gen case, Forshey Prostok addressed numerous regulatory challenges relating to the various Mirant NY-Gen generation assets, from remediation of a dam sinkhole requiring special DIP financing to a court-authorized compromise relating to water quality standards for dissolved oxygen.

Mrs. Baird's Bakeries

Members of the firm successfully represented Mrs. Baird's, the largest privately owned bakery in the United States at the time, in its strategic Chapter 11 bankruptcy case in Fort Worth, Texas. After intense negotiations and litigation, members of the firm settled a multi-million dollar antitrust class action suit through the bankruptcy and proposed a plan of reorganization for Mrs. Baird's which was accepted by every major creditor group and subsequently approved by the Bankruptcy Court in record time. Such a plan paid all allowed claims in full.

Aerobotics Industries, Inc.

Members of the firm successfully reorganized this aerospace company in less than 90 days from filing. Aerobotics provides engineering design, tooling, prototyping and production machining services to the aerospace industry. The company has provided services in connection with the F-16 and F-22 fighter jets, and was named a part of the Joint Strike Fighter Program. Members of the firm formulated and achieved a plan of reorganization for the company, balancing the interests of all constituencies. The company is now known as Westpark Industries, Inc.

Berryman Products, Inc.

Members of the firm successfully formulated and confirmed a plan of reorganization for this 85 year old automotive chemical enhancement distributor after reversing a multi-million dollar jury verdict in California and successfully defeating numerous objections and appeals by a recalcitrant creditor. Such a plan also ultimately paid all allowed claims in full.

General Electrodynamics Corp.

The firm successfully obtained confirmation of a plan of reorganization for this local business. This allowed the company to survive an unexpected million dollar plus jury verdict. Ultimately, Forshey Prostok was able to negotiate an agreement with the judgment holder to allow for confirmation of a plan and the survival of the business.

Lone Star Lubrication Co.

Members of the firm successfully represented the company by confirming a Chapter 11 reorganization plan. The Plan calls for the sale and continuation of more than 40 rapid oil change facilities, allowing equity to continue operation while providing a return to creditors.

Mid-American Indemnity Insurance Company

Members of the firm represented the Foreign Representative of a Fort Worth based Cayman Islands insurance company in the first foreign proceeding under Section 304 before the Fort Worth Bankruptcy Court. As counsel for the Foreign Representative, the firm obtained approval for a scheme of arrangement by both the Bankruptcy Court and the Grand Court of the Cayman Island and brought a successful multi-million dollar fraudulent transaction action against individuals and corporations.

Western Fidelity Marketing, Inc.

Members of the firm successfully represented the former parent and marketing company of a life and health insurance provider through its Chapter 11 reorganization in Fort Worth, Texas. Through its bankruptcy case, Western Fidelity was able to reach favorable resolution of two multi-million dollar lawsuits pending against it in the State Courts of California and Texas. Again, the plan paid all allowed claims in full.

ForsheyProstok has successfully represented additional Debtors such as:

Boys Day Out
Control Components Corporation
Delaney Vineyards, Inc.
Express Telephone
Five Star Foods, Inc.
Game Systems, Inc.
Giddings Apartments, Ltd.
Hispanic Television
JRL Properties International
Larry's Standard Brand Shoes, Inc.
Lucky Lady Oil Co.
Mart Apartments, Ltd.
Med-Sport Physical Therapy
Parnell Chrysler, Plymouth, Jeep, Eagle, Inc.
Ranger Apartments, Ltd.
The Claridge Apartments, Ltd.
The Chancellor Apartments, Ltd.
The Trails, Ltd.

Numerous Chapter 11 liquidating debtors including Aladdin Beauty Schools, Inc., Vogue Beauty Schools, Inc., and K.L. Karnes Construction, Inc.

Attorneys in the firm have also represented the Debtors such as Lone Star Steel, Greyhound Lines, Braun's Fashions, Lillie Rubin's Fashions, Allied Physicians, and Sunrise Energy