Debtor Representations

KTBS represents large and mid-sized companies in a variety of industries across the nation. Many engagements result in successful “out of court” restructurings while others involve well-planned chapter 11 cases. The following is a representative list of its debtor engagements.

All-Star Gas Corporation and Affiliates

National retail propane gas distribution business, comprised of 20 affiliated companies; successfully confirmed plan of reorganization under which company emerged as a going concern.

American Restaurant Group, Inc. and Affiliates

Multi-state restaurant chain. When KTBS was retained as special counsel, secured, unsecured and equity were engaged in extensive plan-related litigation. KTBS resolved numerous issues through an informal mediation that it initiated and thereafter prosecuted confirmation of a plan of reorganization notwithstanding remaining opposition. The plan was overwhelmingly accepted by creditors and shareholders, enabling the company to emerge from chapter 11 just months after KTBS’s employment.

Anacomp, Inc

Document storage and information retrieval technology company; successfully confirmed prepackaged chapter 11 plan in 57 days.

Brotman Medical Center, Inc.

One of the largest independent community hospitals in Los Angeles; "New value" plan of reorganization confirmed that reversed approximately $9 million in fees and interest asserted by the hospital's secured lender, providing significant recoveries to general unsecured creditors and permitting equity to retain its interests.

Crescent Jewelers

Multi-state jewelry retailer; successful confirmation of plan that permitted Crescent to emerge as a going concern and deliver a significant cash dividend to unsecured creditors.

Fountain View, Inc. and Affiliates

Owners and operators of approximately 50 skilled nursing facilities, a pharmacy business, and a therapy business; consensual chapter 11 planned developed, confirmed and implemented providing for payment in full of all unsecured claims (with interest) and retention of substantially all of the equity by the pre-bankruptcy shareholders.

Frederick's of Hollywood and Affiliates

World-famous retailers of innovative specialty apparel; successful confirmation of chapter 11 plan of reorganization.

Gene Douglas Balas and Carlos A Morales

Same-sex married individuals whose joint chapter 13 petition was challenged by the U.S. Trustee as a violation of the federal Defense of Marriage Act (DOMA); KTBS represented the debtors on a pro bono basis, and succeeded in obtaining a 20-judge en banc bankruptcy court opinion declaring DOMA unconstitutional, resulting in a national change in the government’s position in opposing same-sex jointly filed bankruptcies.

Hospital Partners of America, Inc. and Affiliates

Investment company that developed and provided management services to five hospitals co-owned with local physician-investors; KTBS assisted the debtors in using chapter 11 to complete an intricate divestiture of operations in order to facilitate the transfer of hospital assets on a freestanding basis, maximizing the value the debtors’ interests and minimizing claims.

Incomnet, Inc.

Reseller of long-distance telephone services; successful development, proposal and confirmation of a chapter 11 plan of reorganization in eight months.

Jefferson County, Alabama

Served as co-counsel to this chapter 9 municipal debtor in successfully restructuring over $4 billion in municipal debt pursuant to a confirmed plan of adjustment, one of the largest chapter 9 municipal debt restructurings in U.S. history.

Lake at Las Vegas Joint Venture, LLC and Affiliates

Owner-developers of a 3,592-acre master-planned residential development and resort destination known as the Lake Las Vegas Resort located in Henderson, Nevada, approximately 20 miles east of the Las Vegas strip. Successfully confirmed plan of reorganization that enabled development to restart and vested significant litigation claims in a litigation trust.

Metro-Goldwyn-Mayer Studios Inc. and Affiliates

Served as co-counsel to Metro-Goldwyn-Mayer Studios Inc. and approximately 160 of its affiliates (collectively, “MGM”) in connection with their pre-packaged chapter 11 cases. MGM’s prepackaged plan was confirmed by the Bankruptcy Court 29 days following the commencement of the bankruptcy cases and was effectuated shortly after confirmation.

MGM Mirage (now MGM Resorts International)

Represented and advised this large, publicly-traded gaming and resort conglomerate with respect to its successful out-of-court restructuring, which included a restructuring of its interests in the joint venture that developed CityCenter, Las Vegas. 

National R.V. Holdings and National R.V.

Ninth largest manufacturer of “Class A” motor homes (RVs) in the country just prior to filing bankruptcy; case successfully resolved through a joint chapter 11 plan (proposed by the debtors and the creditors' committee).

Pacific Sunwear of California

Represented this large, publicly-traded national retailer of action sportswear in connection with its successful out-of-court restructuring.

Samuels Jewelers, Inc.

One of the largest jewelry chains in the United States at the time of its chapter 11 filing; confirmed a consensual chapter 11 plan that successfully preserved operations.

Sun World International, Inc., et al

Leading producer of high-value crops and one of California's largest vertically integrated agricultural concerns; company's assets sold as a going concern and secured noteholders and continuing vendors received payment in full pursuant to sale transaction and consensual plan of reorganization. Sun World continues to operate as a going concern.

Town of Mammoth Lakes, California

Represented the Town of Mammoth Lakes in its chapter 9 municipal debt restructuring. Assisted The Town of Mammoth Lakes in negotiating a settlement with its largest creditor, following which the Town emerged from bankruptcy.

USA Discounters, Ltd. and Affiliates

Multi-state retailer, finance company, and warranty provider; advised the debtors throughout their wind-down efforts, including negotiating and implementing settlements with all 50 state attorneys general; successfully confirmed fully-consensual plan of liquidation resolving potential litigation claims and streamlining monetization of remaining estate assets.

Vestis Retail Group, LLC and Affiliates

Multi-state retailers of apparel, footwear, and sporting goods, consisting of the Bob’s Stores, Eastern Mountain Sports, and Sport Chalet brands. 

The Wet Seal, Inc. and Affiliates

Multi-state retailer of young adult apparel and accessories; successful sale of operating business that permitted Wet Seal to emerge as a going concern and successful confirmation of a chapter 11 plan of liquidation enabling unsecured creditors to receive a cash dividend.