Harney Partners has comprehensive experience as a court-appointed Chapter 11 Trustee. While appointing a trustee is an extraordinary remedy, it is a valuable strategy in certain circumstances. In the role of Chapter 11 Trustee, we have proven expertise providing objective leadership and oversight in many bankruptcy proceedings.
Chapter 11 Operating Trustee for Harriett Heep-Schaffer in Austin, Texas in a high-profile and highly contentious bankruptcy case involving real property valued at more than $30 million. After litigation and negotiations to clear clouds on the title, and defending a toll road condemnation proceeding, a plan was developed to obtain exit financing which provided sufficient funding to pay all creditors 100%, plus interest. This left ownership of the property with the Debtor, who ultimately realized an eight-figure net return.
Chapter 11 Post-Confirmation Trustee to Galveston Bay Biodiesel, LP, a Chapter 11 debtor in Galveston, Texas. This matter involved an orderly wind down and §363 sale process of a biodiesel refinery after assisting in the formulation of the Disclosure Statement and Plan. The case was precipitated by catastrophic damage caused to the refinery by Hurricane Ike, so claims were also litigated against the debtor’s insurance carriers to recover on claims for the benefit of creditors.
Chapter 11 Post-Confirmation Trustee for VPR Operating, LLC and other consolidated E&P (exploration and production) debtor entities with oil and gas interests in Oklahoma and New Mexico. All such assets of the Debtors were sold pre-confirmation. Greg stepped into pending subordination/re-characterization litigation filed by the Committee against certain investors and alleged pre-petition lenders. Post-confirmation, Greg also filed approximately forty (40) Chapter 5 causes of action, as well as additional D&O litigation. The recoveries from these litigation claims provided a recovery to all allowed unsecured creditors.
Chapter 11 Plan Trustee for Regent Park Capital, LLC, a hard money lender providing short-term commercial loans, commercial bridge loans, asset-based loans, and hard money loans. Upon the illness and death of RPC’s founder and managing member, the company was not able to reorganize, so the decision was made to confirm a plan of liquidation through a Plan Administrator. Through the Plan Administrator, the remaining portfolio of loans was wound down for the benefit of the senior secured creditor, primarily through the foreclose and sale of the collateral properties, both at the courthouse sale and by listing the property for sale after obtaining title in the name of the debtor’s estate.
Post-Confirmation Trustee for BullionDirect, Inc., an online seller of precious metals (primarily coins). Additionally, BDI agreed to store metals on behalf of its customers; however, prior to filing of the case, the debtor misappropriated approximately $25MM of customer metals affecting approximately 7,500 consumers. As Trustee, the company’s remaining metals inventory was sold, litigation claims were resolved, and contract rights were monetized. After a claims review and allowance process, these proceeds were distributed to allowed claimants. The debtor’s principal, Charles McAllister, was charged criminally and sentenced to 10 years in federal prison.