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FINANCE, BANKRUPTCY & CREDITORS RIGHTS
Use of Cash Collateral

Use of Cash Collateral

Debtor Representation: In re: Input/output Computer Services, Inc., Chapter 11, Case No. 93-12163-WCH, U.S. Bankruptcy Court, Boston, Massachusetts.
Counsel: Denzil D. McKenzie

Representation of the Debtor, a $30,000,000 computer systems integration and distribution business. As part of this reorganization, we defended the Debtor’s rights to use cash collateral during the Chapter 11 proceeding under a $125,000 a month operating budget, paid off two secured creditors, one was owed $1,200,000 and the other $480,000, and discharged the personal guaranty of the President. In addition, we negotiated an unlimited line of credit with the Debtor’s principal trade creditor, and dismissed the Chapter 11 proceedings after five (5) months by accomplishing the Debtor’s objectives.

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Creditor Negotiations

Debtor Representation: In re: Patriot Subaru, LLC, Chapter 7 (converted), Case No. 96-46134-JFQ, U.S. Bankruptcy Court, Worcester, Massachusetts
Counsel: Denzil D. McKenzie

Representation of a car dealership in what began as a financial reorganization. We successfully negotiated with the secured creditors for use of the collateral so that the business could continue operation during the Chapter 11 case. Ultimately, the debtor’s lessor forced the business to convert to a Chapter 7 case when certain personal guarantees could not be satisfied.

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Voting on and Objecting to Plan of Reorganization

Debtor Representation: In re: Lenny’s Tropical Bakery, Inc., Chapter 11, Case No. 94-14240-WCH, U.S. Bankruptcy Court, Boston, Massachusetts District
Counsel: Denzil D. McKenzie

Representation of the Debtors throughout a complicated financial reorganization. We were ultimately able to propose a plan that could be confirmed over the objection of secured creditors who had made a Section 1111(b) election. Ultimately, the major objecting secured creditor’s claim was refinanced through a third-party lender, the plan was confirmed, and the Debtor successfully reorganized his business.

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Bad-Faith Filing

Debtor Representation: In re: Patricia R. Long, Bankruptcy Appeal, Case No. 91-11864-H, U.S. District Court, Boston, Massachusetts
Counsel: Denzil D. McKenzie

Representation of the Debtor in an appeal from the Bankruptcy Court’s finding that the Debtor made a bad-faith filing intended to forestall a foreclosure in violation of 11 U.S.C. §1112(b). The Debtor retained us after the Court ruled that her petition was filed in bad faith.

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Motion for Relief from Automatic Stay or Adequate Protection

Creditor Representation: In re: Robert A. Palmer, Chapter 11, Case No. 91-20389-WCH, U.S. Bankruptcy Court, Boston, Massachusetts District
Counsel: Denzil D. McKenzie

Successful representation of a secured creditor by lifting the stay against the collateral in addition to supervising the remediation of environmental problems and disposition of the collateral in a private sale. The sale yielded a 75% dividend to our client.

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Recovery of Fraudulent/Preferential Transfers

Creditor Representation: Herman Gist Apparel Company v. Empire Blue Cross/Blue Shield, Adversary Proceeding No. 93-1400-WCH, U.S. Bankruptcy Court, Boston, Massachusetts
Counsel: Denzil D. McKenzie

Successful representation of the creditor in a proceeding by the disbursing agent under 11 U.S.C. §547 to recover certain alleged preferential transfers to our client, Empire Blue Cross/Blue Shield.

Creditor Representation: In re: John and Elaine Brennick, Chapter 11, Case No. 93-40360-JFQ, U.S. Bankruptcy Court, Worcester, Massachusetts
Counsel: Denzil D. McKenzie

Successful representation of Blue Cross/Blue Shield, a major trade creditor, in a complicated Chapter 11 case by asserting our client’s rights to recoup, under 11 U.S.C. § 553, certain improper payments made to the Debtor

Creditor Representation: In re: 44 Lowell Junction Road Realty Trust, Chapter 11, Case No. 95-43122-HJB, U.S. Bankruptcy Court, Boston, Massachusetts
Counsel: Denzil D. McKenzie

Successful representation of a secured creditor with the fourth place lien of $2.2 million secured by the only asset of the estate. We successfully challenged the second-place lien holder’s claim as being the result of a fraudulent transfer, and the third-place lien holder’s claim as valueless. We were able to recover a significant settlement for our client, which was significantly greater than the Debtor’s proposal to pay pennies on the dollar.

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Creditor Negotiations
Voting on and Objecting to Plan of Reorganization
Bad-Faith Filing
Motion for Relief from Automatic Stay or Adequate Protection
Recovery of Fraudulent/Preferential Transfers
Adequacy of Disclosure Statement

Adequacy of Disclosure Statement

Creditor Representation: In re: Windsor English Muffin Company, Chapter 7 (converted), Case No. 91-12473-WCH, U.S. Bankruptcy Court, Boston, Massachusetts
Counsel: Denzil D. McKenzie

Successful representation of the FDIC in collecting its secured claims. This included objecting to the adequacy of the Debtor’s Disclosure Statement and its improper attempt to cram-down the FDIC’s claims. We negotiated with Debtor’s counsel to amend the plan of reorganization, which was ultimately approved by the Court, and we subsequently moved to convert the case to one under Chapter 7 when the Debtor failed to comply with the terms of the plan.

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Opposition to Discharge

Creditor Representation: In re: Mark J. Lenhart, Adversary Proceeding, Case No. 92-1308, U.S. Bankruptcy Court, Boston, Massachusetts
Counsel: Denzil D. McKenzie

We represented the FDIC in this proceeding to deny the discharge under 11 U.S.C. §§727(a)(2)(A), 727(a)(3) and 727(a)(4)(A).

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Revocation of Discharge

Creditor Representation: In re: Michael L. Mazur, Sr. and Jean F. Mazur, Adversary Proceeding, Case No. 94-1430, U.S. Bankruptcy Court, Boston, Massachusetts
Counsel: Denzil D. McKenzie

We represented the FDIC in this proceeding to revoke the discharge under 11 U.S.C. §§727(a)(2)(A) and (B), 727(a)(3), 727(a)(4). After a successful trial, the discharges were revoked.

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Fraudulent Mortgage

Brown v. Long Beach Mortgage Co., et als., Suffolk Superior Court, Civil Action No. 98-5766B
Counsel: Denzil D. McKenzie

Representation of the the Plaintiff in this complex civil action to void a fraudulent mortgage executed by the Plaintiff’s wife. We sought to extinguish the underlying debt secured by the mortgage given to the Defendant. We conducted a 3-day trial on the equity claims to rescind the $100,000 mortgage that was added to an existing $165,000 mortgage. We were successful in that a Suffolk Superior Court jury found that the mortgage was fraudulent, and the Court rescinded the mortgage.

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Collections

Federal Deposit Insurance Corporation (FDIC)
Counsel: Denzil D. McKenzie

Representation of the FDIC in complex collection matters stemming from failed financial institutions between 1994 and 2000, and again in 2010.

Wells Fargo Bank, N.A.
Counsel: Denzil D. McKenzie, Garrett J. Lee

Representation of Wells Fargo Bank, N.A. in ongoing collection services on commercial loans for various loan officers from Wells Fargo Bank in Colorado and New Jersey.

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Kay’s Oasis Enterprises, Inc.

Our bankruptcy practice is designed to provide an avenue to our clients that encounter difficulties with their finances.

One of our clients, Kay’s Oasis Enterprises, Inc., experienced the misfortune of being hit with a $500,000 judgment in a civil action stemming from an injury suffered by a customer on a day when Kay’s insurance policy had lapsed. After several years of failed appellate attempts, the Kay’s retained our firm just days before the judgment creditor sought to execute on a $860,000 judgment on Kay’s real estate. The judgment was only a part of the financial issues Kay’s was facing; it also had serious delinquent tax problems, and unfortunately, all the client’s assets were held in a single corporate entity.

We advised Kay’s to seek protection under Chapter 11 of the Bankruptcy Code. Thus, Kay’s operated under Chapter 11 for over 3 years. With the cooperation and assistance of the judgment creditor as well as other creditors, we were able to restructure Kay’s business. Kay’s restructured business raised and paid $680,000 in debts and administrative fees to emerge from Chapter 11 protection.

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Opposition to Discharge
Revocation of Discharge
Fraudulent Mortgage
Collection
Kay’s Oasis Enterprises, Inc.
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