Bankruptcy, Reorganization & Creditors' Rights Law
Arizona Corporate Bankruptcy Attorneys
The Jennings, Strouss & Salmon Business Restructuring and Reorganization attorneys pride themselves on their creativity, which is coupled with a pragmatic approach to the resolution of bankruptcy and creditor-debtor issues. In fact, Jennings, Strouss & Salmon received a Metropolitan Tier 1 ranking in Phoenix, Arizona in the 2015 edition of U.S. News - Best Lawyers “Best Law Firms” for Bankruptcy and Creditor-Debtor Rights/Insolvency and Reorganization Law.
Jennings, Strouss & Salmon’s Business Restructuring and Reorganization attorneys experience includes a full range of representation in all aspects of commercial bankruptcy, reorganization and creditors’ rights. That experience, combined with the depth and breadth of the firm's corporate, securities, real estate, health care and intellectual property practices, enables the firm to assist clients in virtually any financially-distressed situation, from either the debtor or creditor perspective.
Focusing on the interests to be advanced or protected, our attorneys identify issues, gather facts, conduct research, and create a strategy in support of the positions advocated by, and in the best interest, of our clients. This includes identifying and maximizing the strengths of our client's position and the weaknesses of the adversary's position; and effectively presenting those positions to the court and opposing counsel and party. The primary goal is to create the best possible setting for a successful negotiation, or, secondarily, for litigation if a settlement cannot be achieved.
When appropriate, our Business Restructuring and Reorganization attorneys collaborate with members of other firm departments to assemble a team that has the experience and skills necessary to handle a particular matter. For example, when the firm's creditors' rights attorneys are involved in actions involving the collection of secured and unsecured debt, they may consult Uniform Commercial Code and tax counsel or, in cases that involve complex litigation, attorneys in the firm’s Commercial Litigation department may be utilized to assist with the preparation and trial.
Our attorneys stay current on cutting-edge developments in bankruptcy law through membership in the American Bankruptcy Institute, periodicals, attendance and participation in bankruptcy seminars, and, in individual cases, by such diverse activities as participation in the State Bar of Arizona's standing committees for review and recommendation of local bankruptcy rules, bankruptcy certification by the State Bar of Arizona, business bankruptcy certification by the American Board of Certification, and attendance at the National Conference of Bankruptcy Judges, American Bankruptcy Institute conferences, and other national meetings of bankruptcy judges and practitioners.
Appellate and Published Decisions
Our attorneys have represented clients in appeals in the United States Supreme Court, the Ninth Circuit Court of Appeals, the Bankruptcy Appellate Panel for the Ninth Circuit, and the District Court for the District of Arizona.
- Represented landlord in case of first impression regarding issue on the debtor’s ability to
assume a real property lease. In re Circle K Corp., 127 F.3d 904 (9th Cir. 1997), petition for Writ of Certiorari to the Supreme Court
- Represented debtor in case of first impression regarding the exemption of a debtor’s
pension plan. In re Garlikov, 992 F.2d 224 (9th Cir. 1994)
- Represented debtor in case regarding real estate
endeavor. In re Oklahoma PAC Ninth Circuit BAP and Ninth Circuit
- Represented debtor in case regarding improper dismissal. In re MJS Holdings, Arizona District Court
- Represented appellee debtor in dispute regarding previous counsel representation. In re R.E.D.I. Co. Ninth Circuit BAP
- In re Spring Ford Industries, Inc., 2004 WL 1291223 (Bankr. E.D. Pa. 2004)
- In re Cadiz Properties, (Bankr. N.D.Tx. 2002); co-authored petition for writ of certiorari to
United States Supreme Court in In re Circle K Corp.
- In re Lundell, 223 F.3d 1035 (9th Cir. 2000)
- In re Arden Properties, 248 B.R. 164 (Bankr. Ariz. 2000)
- In re Bryant Universal Roofing, Inc. 218 B.R. 948 (Bankr. Ariz. 1998)
- In re Circle K Corp., 127 F.3d 904 (9th Cir. 1997)
- In re Elia, 198 B.R. 588 (Bankr. D. Ariz. 1996)
- In re American Continental Corp., 142 B.R. 894 (D. Ariz. 1992)
- In re McClain Airlines, 80 B.R. 175 (Bankr. D. Ariz. 1987)
Asset Purchasers and Investors
Bankruptcies often involve the purchase of assets or the infusion of capital. We have structured numerous acquisitions in bankruptcy cases as well as represented a multitude of clients purchasing assets or stock from bankruptcy estates.
- Represented purchaser of assets from large nursing home and hospice care facility owner and
operator. In re Wilcare
- Counsel to purchaser of assets from durable medical equipment company. In re Western Medical
- Arizona counsel to purchaser in connection with $160 million purchase of assets from debtor. In re Einstein Noah Bagels
The firm has extensive experience in representing chapter 11 creditors’ committees, including representation in virtually every major case filed in the District of Arizona in the past six years. Jennings Strouss attorneys have the ability to assimilate issues quickly and take appropriate action in an expeditious and cost-efficient manner. Many of the tasks a Committee must undertake involve forensic investigation regarding fraud or breach of fiduciary duty on the part of company principals or third parties. We have vast experience in conducting this research and pursue litigation when necessary. We also maintain important contacts with various accounting and turnaround firms which can provide valuable assistance
- In re Trend Homes (significant Arizona home builder)
- In re Jake’s Granite Supplies (significant supplier of granite materials)
- In re Symphony Builders (Arizona home builder)
- In re Donahue Partners (Sunvek roofing)
- In re Nutracea (public company – international distribution, processing of rice bran)
- In re Thornwood Furniture Manufacturing, Inc. (furniture manufacturer)
- In re Arete Holdings, LLC (sleep therapy companies)
- In re AZ-Tech Radiology & Open M.R.I., L.L.C. (MRI clinics)
- In re Swift Air, L.L.C. (charter airline company)
- In re Pet Resorts, Inc. (pet services)
- In re Eurofresh, Inc. (agriculture)
- In re Florence Hospital at Anthem, LLC (hospital)
- In re Electric Transportation Engineering Corporation (d/b/a ECOtality North America), et al. (electric vehicle charging)
- Operator of numerous restaurants throughout Southwestern United States; despite lack of
unencumbered assets, successfully negotiated plan with distribution to unsecured creditors. In re Souper Salad
- $60 million propane gas distributorship; despite lack of unencumbered assets, successful
negotiation of plan with distribution to unsecured creditors. In re All Star Gas
- Successful negotiation of 87.5% distribution to unsecured creditors. In re TFS (Three Five Systems) Electronic Manufacturing Services
- Multi-million automotive parts manufacturing company; despite difficult operational setting,
successfully negotiated plan with distribution to unsecured creditors. In re Triumph Corporation
- Hospital and related non-profit organizations; successful negotiation of sale of hospital
and distribution to unsecured creditors. In re PMS (Phoenix Memorial Hospital)
- National operator of 460 restaurants and specialty retail stores; represented interest
of $125 million in bond debt. In re Einstein/Noah Bagel
- Real estate investment and sales company; successful in obtaining the appointment of
a trustee and in settlement for unsecured creditors. In re LMA Properties
Complex Debtor Reorganizations and Workouts
Jennings, Strouss & Salmon attorneys have represented public and private companies’ partnerships and individual chapter 11 debtors in significant cases involving sizeable financial services, real estate holdings, regional and national retail chains, health care concerns, manufacturing businesses, and airlines.
Many of the attorneys experienced the tremendous surge in bankruptcy filings in the late 1980's, early 1990's and the mid 2000's. As a result, they have extensive knowledge of debtor representation and can efficiently represent small to medium-sized enterprises and ventures.
- Representation of the National Bank of Arizona in its collection and bankruptcy work
- Representation of BMW Financial Services in consumer bankruptcies
- Representation of Vanderbilt Mortgage and Finance, Inc. in consumer bankruptcies
- Representation of Summit Healthcare in its collection and bankruptcy matters
- Counsel to America West Airlines
- Arizona counsel to Einstein Noah Bagels in connection with $160 million purchase of assets from debtor
- Served as counsel to Chapter 7 trustee in major action to recover fraudulent transfers and damages for usurpation of intellectual property (Osborn Scientific Group)
- Representation of the post-confirmation Chapter 11 grocery store chain’s Estate representative in preference and related litigation (Megafoods)
- Representation of Mortgages Ltd, the largest private mortgage lender in Arizona with a nearly $1 billion loan portfolio, in its vast and complex chapter 11 bankruptcy
- Representation of Chapter 11 Debtor in successful reorganization of automotive parts manufacturer (Triumph Corporation)
- Representation of member of Unsecured Creditors Committee in an international nutrition and health care company (Nutracea)
- Representation of Arizona’s largest Arby’s restaurant franchisee in its successful chapter 11 reorganization (FX4, LLC, et al.)
- Representation of a 435 unit residential apartment complex, Desert Gardens IV, LLC, in its successful chapter 11 reorganization
- Representation of five Nevada LLC’s and their principal in a complex, multi-state real estate and partnership jointly administered chapter 11 cases (Hugo Paulson, et al.)
- Successful Chapter 11 reorganization of regional airline company. In re McClain Airlines, Inc.
- Successful restructuring of largest car rental agency in Northern Arizona. In re Robert L. Hansen Enterprises, Inc. dba Budget Rent-A-Car of Northern Arizona
- Served as debtor’s counsel in one of largest real estate bankruptcies filed in Arizona. In re LME
- Structured liquidation of refinery. In re National Petroleum Marketing
- Restructuring of large dairy. In re Heartland Dairy
- Special counsel to the debtor, a multi-million international manufacturer and distributor of
salon products. In re Styling Technology
- Successful reorganization of metals recycling business. In re Empire Metals
Complex Insolvency-Related Litigation
Jennings Strouss lawyers have established themselves on the cutting edge of litigating complex insolvency-related theories brought against third party advisors and officers and directors. Our lawyers have engaged in preference and fraudulent transfer litigation in forums through the country.
Jennings Strouss attorneys have a depth of expertise in a multitude of industries whether representing creditors, creditors’ committees, trustees or debtors. This is important because we can focus on issues quickly and take appropriate action in an expeditious and cost-efficient manner. In addition, our attorneys who have practiced in all of these areas and their expertise is invaluable in a work-out situation or a bankruptcy.
Secured Creditors/Major Unsecured Creditors/Lessors/Landlords
As part of its broad business practice, the firm has represented numerous financial institutions major lessors and other creditor entities and individuals on all types of debtor/creditor and bankruptcy-related issues including foreclosures, collections and garnishments, landlord/tenant matters, and leasing issues.
- Counsel to largest unsecured creditor and major credit card issuer. In re America West Airlines
- Counsel to major Mexican commercial real estate lessor. In re Spring Ford Industries
Trustees and Receivers
Our lawyers have represented numerous trustees in bankruptcies and receivers in state court cases.
- Represented Chapter 7 trustee in collection of multi-million dollar judgment. In re Casey
- Served as Chapter 11 Trustee and counsel in liquidation of mobile television production
entity. In re HDP Partners, LLC
- Served as counsel to Chapter 7 trustee in major action to recover fraudulent transfers and
damages for usurpation of intellectual property. In re Osborn Scientific Group
- Served as counsel to Receiver in state court action involving large mining company. In re Mountain Mining