A business in financial distress needs calm, practical and experienced counsel. Hiring counsel at the first sign of trouble improves the chances of successfully restructuring a business and may obviate the need for bankruptcy. Also, having counsel available to work with creditors leaves management with more time to devote to core business issues.

We have helped businesses work out financial problems and avoid bankruptcy. We have also represented businesses from small proprietorships to large publicly-traded companies through the complex web of a Chapter 11 bankruptcy case.

Some of our Chapter 11 bankruptcy representations include:

• Lamonts Apparel, Inc. (Western District of Washington 95-00100 and 00-00045). A Northwest-based retailer of casual apparel.
• Ernst Home Center, Inc. (Western District of Washington 96-10129). A publicly-traded major regional retailer in the home improvement, hardware and garden industry. The case was one of the largest ever in the Western District of Washington and produced several published court opinions on lease issues.
• Fields Company LLC (Western District of Washington 05-45967). A manufacturer of roofing products.
• Pro Air, Inc. (Western District of Washington 00-09271). A passenger airline with corporate headquarters in Seattle and flight operations based out of Detroit.
• Western Cargo Distribution, Inc. (Western District of Washington 04-14908). A warehousing and transportation company.
• North American Crane & Equipment Co. LLC (Western District of Washington 02-47184). A company engaged in the design, manufacture and service of cranes, primarily for the marine industry.
• Penmar Marine Co. (Western District of Washington 03-11873). A marine business including yacht charters, harbor services, boat storage, boat and motor sales, services and repairs, and paint and fiberglass services.
• Galaxy Sports Corp. (Western District of Washington 02-22335). A licensee of soccer products.
• Gruntruck (Western District of Washington 94-08304). Allowed a music band to avoid an onerous recording contract.

In many Chapter 11 bankruptcy cases, an unsecured creditors committee is appointed. During bankruptcy, the role of the committee is to represent the interests of unsecured creditors asa group. The creditors committee has certain duties and its opinion is often very influential. The creditors committee is permitted to hire lawyers and other professionals at no cost to the individual members of the committee.

Some of the cases in which we have represented the Official Unsecured Creditors Committee include:

• Charles F. Berg, Inc. (Western District of Washington 08-10691). A regional retailer in the women’s clothing business.
• Doelman Dairy Farms (Western District of Washington 03-44713). A large dairy operation.
• Billy McHale’s Corporation (Western District of Washington 01-18704). A restaurant chain.
• Equity Trusts I & II and Philip Harmon (Western District of Washington 96-15026 and 97-06982). Related cases involving serious allegations of fraud.

Our experience in representing trustees in Chapter 7 and 11 bankruptcy cases may be unsurpassed among mid-sized and large-sized firms in Western Washington. Over the last few decades, we have helped trustees fulfill their unique duties in many hundreds of asset cases. It is a special area of bankruptcy practice at which we excel.

The cases we have worked on for trustees come in all shapes and sizes. A few of the more interesting ones include:

• Neil M. Rose (Western District of Washington 01-49703). The debtor made numerous allegations of improper conduct by the trustee, many lawyers and the judge, as well as jurisdictional challenges.
• Lawrence Siegel (Western District of Washington 98-14306). The case involved liquidating nearly $2 million in gold coins.
• All American Bottled Water Corporation (Western District of Washington 06-43133). The case involved the “Olympic Brewery” property, a very well-known property in Western Washington.
• Quality Veneer & Lumber Inc. (Western District of Washington 00-09683). Sale of lumber and plywood mills.
• Gateway Center Retail LLC (Western District of Washington 03-12022). Shopping center.
• Kalakala Foundation Inc. (Western District of Washington 03-13386). Included a sale of the historic ferry MV Kalakala.
• Brookhaven Homes L.P. (Western District of Washington 03-13932). Sales of real properties and resolution of purported secured claims.
• United Home Loans, Inc. (Western District of Washington 86-01881). Liquidation of a large troubled loan portfolio.
• FD Processing Inc. dba Foremost Dairies Northwest (Western District of Washington 91-01080). Liquidation of dairy bottling and production facility.
• Western Optical Corporation (Western District of Washington 96-15018). Liquidation of large optical company.

Receiverships are a non-bankruptcy vehicle that puts a fiduciary in control of some (custodial receiver) or all (general receiver) of an entity’s assets. The duties of a receiver vary depending on the scope of the proceeding. A custodial receiver’s duties may be as limited as preserving a single asset pending resolution of a lawsuit while a general receiver’s duties may be to liquidate all assets of a business.

Members of our Bankruptcy and Creditors’ Rights Group have served as receivers and as lawyers for receivers. A few of our receivership cases include:

• Wells Fargo Bank, N.A. v. Kirkland Nissan Inc. et al. (Washington State Superior Court, King County No. 01-2-27466-0SEA). We represented the receiver in a complex automobile dealership case.
• John Yonich v. Chester Trabucco and Aberdeen Development Co., LLC (Washington State Superior Court, Grays Harbor County No. 07-2-712-8). We represent the receiver in the liquidation of some dilapidated real estate in connection with the resolution of a dispute between its owners.
• Xu et al. v. Xu et al. (Washington State Superior Court, King County No. 06-2-35691-8SEA). One of our members was the receiver in this case involving an ownership dispute over an apartment complex.
• Lindsay Moving & Rigging, Inc. (Washington State Superior Court, King County No. 04-2-25404-3SEA). We represented the receiver in the complete liquidation of the company.

Special rules apply to sales of property by bankruptcy debtors and trustees. Many sales are subject to higher and better offers even after a purchase and sale agreement has been executed. Purchasers also need to be cognizant that representations and warranties by sellers which are common outside of bankruptcy are often not available. Even when given, the warranties may be of dubious value as the seller often will be gone shortly after a sale is completed.

We have assisted prospective buyers or actual buyers in the following bankruptcy cases:

• Larry’s Markets, Inc. (Western District of Washington 06-11378). We represented potential buyers of a grocery store claim.
• Mini-Tankers USA, Inc. (Western District of Washington 03-22882). We represented a potential buyer of the debtor’s assets.
• Metawave Communications Corporation (Western District of Washington 03-11272). We represented the buyer of intellectual property.
• MOC Investment LLC (Eastern District of Washington 05-11320-7). We represented the buyer of a service station after the initial purchase transaction failed.

The bankruptcy laws grant debtors certain rights and responsibilities with respect to real property leases. Whether a landlord wants its rent paid or desires to remove its tenant from the property, a knowledgeable bankruptcy lawyer is a useful tool.

We have assisted landlords in maximizing their recovery and/or getting their property back in several cases including:

• Network Commerce Inc. (Western District of Washington 02-23396).
• TreeSource Industries Inc. (Western District of Washington 99-10937).

In addition to representing our clients in insolvency cases, we have also represented them in related lawsuits (called adversary proceedings) and in appeals from orders of the bankruptcy court. Our experience in adversary proceedings includes defending creditors from dreaded preference claims (i.e., a claim by a debtor or trustee to recover a payment the debtor made to the creditor prior to the bankruptcy case). Our appellate experience includes cases appealed to the District Court, the Bankruptcy Appellate Panel and the 9th Circuit Court of Appeals.

We represent banks, commercial financial companies and other secured lenders in a variety of matters. Our engagements include commercial collections and loan workouts, regulatory matters, general operations issues and document preparation. We have represented some institutions headquartered in Western Washington for decades; our practice also includes representation of out-of-state lenders with needs in Washington State.

The firm’s representation of commercial lenders has been in all forums, including federal and state courts, U.S. Bankruptcy Court, and in receivership, arbitration and mediation proceedings

We have wide experience in commercial collection litigation and loan workouts and restructurings. The firm also assists in advising lenders on the structure of loan transactions in dispute resolutions.

The firm's involvement in matters for its financial institution clients includes cases involving several thousands of dollars up to many millions. Just recently, the firm has undertaken representation of a lender regarding a large portfolio of troubled real estate loans

Various aspects of the collection process with which the firm has been involved include foreclosure of real estate mortgages and deeds of trust, foreclosure of security interests, and actions against guarantors. With the firm’s experience, we are both knowledgeable and efficient in our representation of financial institution clients.

Recent significant engagements include:

• Management and work out of a troubled real estate portfolio
• Successful resolution of lender-liability claims asserted by borrowers and guarantors
• Recovery of collateral, including bankruptcy and receivership cases
• Determining bidding strategy at foreclosures of multiple properties