Creditors’ Rights Services
In our Creditors’ Rights practice, we have represented both creditors and debtors across a broad range of issues. Click below to learn about some of the dockets we have handled.
Use of Cash Collateral
93-12163-WCH
Debtor Representation: In re: Input/output Computer Services, Inc., Chapter 11, Docket 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.
Creditor Negotiations
96-46134-JFQ
Debtor Representation: In re: Patriot Subaru, LLC, Chapter 7 (converted), Docket 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 docket. Ultimately, the debtor’s lessor forced the business to convert to a Chapter 7 case when certain personal guarantees could not be satisfied.
Voting on and Objecting to Plan of Reorganization
94-14240-WCH
Debtor Representation: In re: Lenny’s Tropical Bakery, Inc., Chapter 11, Docket 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.
Bad-Faith Filing
91-11864-H
Debtor Representation: In re: Patricia R. Long, Bankruptcy Appeal, Docket 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.
Motion for Relief from Automatic Stay or Adequate Protection
91-20389-WCH
Creditor Representation: In re: Robert A. Palmer, Chapter 11, Docket 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.
Collections
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 Wealth Management
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.
Recovery of Fraudulent/Preferential Transfers
93-40360-JFQ
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, Docket 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.
Adequacy of Disclosure Statement
91-12473-WCH
Debtor Representation: In re: Patricia R. Long, Bankruptcy Appeal, Docket 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.
Opposition to Discharge
92-1308
Creditor Representation: In re: Mark J. Lenhart, Adversary Proceeding, Docket 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).
Revocation of Discharge
94-1430
Creditor Representation: In re: Michael L. Mazur, Sr. and Jean F. Mazur, Adversary Proceeding, Docket 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.
Fraudulent Mortgage
98-5766B
Suffolk Superior Court, Civil Action No. 98-5766B
Counsel: Denzil D. McKenzie
Representation of 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.