Although we are not a full-service bankruptcy firm, bankruptcy proceedings often spawn major litigation. We have frequently represented debtors, trustees, and post-confirmation trustees in litigation arising out of the failure of the bankrupt company. These claims generally involve the application of Bankruptcy Code preference, fraudulent conveyance, and equitable subordination causes of action, as well as state uniform fraudulent conveyance claims and state common law and statutory tort claims such as breach of fiduciary duty and fraud.
For example, Tom Fulkerson represented J. A. Compton as the post-reorganization receiver of Kimball Gas Trading LLC in the estate’s claim against Dominion Energy and Carthage Energy Services, Inc. to avoid $22 million of preferential transfers and offsets issued just prior to the failure of the company. Similarly, Tom represented trustee Joseph Hill in the Chapter 7 proceeding for Lake Olympia Development against a group of Filipino and Taiwanese individuals and firms, reaching settlements that permitted creditors to be paid over 40¢ on the dollar—an unusually high figure for Chapter 7 creditors.
Wes Lotz represented Don Peterson in claims for unpaid compensation in the Houston Petroleum Company bankrupty handling the claims through a bench trial and post-trial briefing.