HMP is often called upon to serve in various fiduciary capacities in federal courts, state courts and out-of-court situations. These appointments require a demonstrated proficiency in the customary financial and operational aspects of an engagement, but also the ability to manage and monetize a wide variety of disparate assets while operating within the specific legal confines of the particular situation.
Having served as an appointed or elected fiduciary of all kinds, that cumulative experience allows our team to instantly hit the ground running – which is a critical differentiator because time is never a luxury. Rather than being paralyzed by the increased transparency and scrutiny imposed by a legal proceeding with duties to a variety of beneficiaries and constituents, HMP leverages its experience to use the “system” to achieve identifiable, near-term results.
In federal court, HMP serves as Chapter 11 Operating Trustee, Chapter 11 Post-Confirmation Trustee and Chief Restructuring Officer.
Representative engagements include:
- Chief Restructuring Officer in the Chapter 11 proceeding of a company in the oil and gas sector that raised approximately $140MM in equity and $50MM in debt, but was unable to continue profitable operations. After an expedited and court-approved process, HMP sold the debtor’s intellectual property to Halliburton Energy Services and all operating assets to another buyer.
- Chapter 11 Post-Confirmation Trustee for multiple consolidated E&P debtor entities with oil and gas interests in multiple states. All such assets of the Debtors were sold pre-confirmation and the Trustee stepped into pending subordination/recharacterization litigation filed by the Committee against certain alleged pre-petition lenders. Post-confirmation, the Trustee has also filed all viable Chapter 5 causes of action, as well as additional D&O litigation.
- Chapter 11 Post-Confirmation Trustee representing the interests of 64,000 policy holders of a failed automotive extended warranty company. This engagement involved the direction of complex litigation against multiple third-party defendants both in the United States and internationally, as well as the claims adjudication process with total creditor claims exceeding $50 million.
- Chapter 11 Operating Trustee in a high-profile and highly contentious bankruptcy case involving real property valued in excess of $30 million. After litigation and negotiation to clear several clouds on the title, a plan was developed that provided sufficient funding to pay all creditors 100%, plus interest, and left ownership of the property with the Debtor which ultimately realized an eight-figure return.
- Restructuring Advisor and Post-Confirmation Trustee to a Chapter 11 debtor involving the closure of two unprofitable divisions and the operation/sale of a third, profitable division, after an extensive §363 sale process which returned 80% to the unsecured creditors of all three division from the sale of only one division.
- Chapter 11 Post Confirmation Trustee to a Chapter 11 debtor in Galveston, Texas directing the §363 sale process of a biodiesel refinery and the prosecution of various litigation claims.
For a variety of reasons, including the administrative costs associated with being a Chapter 11 debtor, state court receiverships and Assignments for the Benefit of Creditors are becoming more popular and are able to achieve similar results in many situations.
Representative engagements include:
- Assignee for an Illinois company which manufactured building materials for the transportation industry.
- State Court Receiver for a high tech service company which involved the operation and sale of the company (which retained all 140 local jobs) and the subsequent administration of the sale proceeds for the benefit of unsecured creditors.
- State Court Receiver for two money service businesses with more the 20,000 combined customers which were sued by the Texas Attorney General and the Texas Department of Banking for failing to account for millions of dollars of consumer trust funds and/or operating a money service business without a license. HMP was charged with the orderly wind down of both companies, as well as investigating the identity of defrauded consumers, the sources and uses of consumer trust funds, the location and liquidation of all recoverable assets, and the development of an equitable claims and distribution process.
- State Court Receiver for eighteen (18) persons and entities sued by the Texas Attorney General and State Securities Board for selling unregistered securities, by unlicensed dealers and though various means of fraud. HMP was charged with investigating the identity of investors, the source and use of investor funds, the location and liquidation of all recoverable assets, and the development of an equitable claims and distribution process.
HMP also serves as a fiduciary in out-of-court distressed situations.
- Independent board member and advisor to a municipality in relation to the restructuring of $60MM in bond debt.
- Sole Director of a Cayman entity, appointed by a Chapter 7 Trustee, to investigate the conduct of the entity’s business and ownership of assets in Grand Cayman and elsewhere. These efforts facilitated the recovery and liquidation of an apartment complex, cars, boats and pursued litigation claims.
- Sole Director of a West Virginia company in the oil and gas sector, appointed by a Chapter 7 Trustee, to investigate the conduct of the entity’s business and ownership of assets in West Virginia and elsewhere. After a review of the company, HMP filed a bankruptcy proceeding on behalf of the entity to full administer its assets for the benefit of creditors.