Big Bankruptcy Cases
Lakelaw represents people and small businesses in bankruptcy matters. Sometimes, ordinary people and small businesses get caught up in massive bankruptcy cases. Lakelaw has been called upon to help people and businesses caught up in very large corporate reorganization cases – commonly called “mega-cases.”
Here are some case studies:
In Kmart’s bankruptcy reorganization, we represented over thirty counties from the State of Georgia. Kmart was trying to avoid paying these counties personal property taxes due for the inventory in Kmart’s stores. County collectors, naturally unfamiliar with claims procedures in chapter 11 bankruptcy cases often failed to file their proofs of claims. So Kmart sued over 500 counties, all in one suit, to try to eliminate property tax liability. Here’s what we did:
- Successfully moved to dismiss the 500 county lawsuit, forcing Kmart to file separate suits against each county
- Successfully claimed that proofs of claims were not needed until the taxes actually were due and payable
- Negotiated settlements of tax claims resulting in payments of over $10 million to the various counties.
We represented corporations and individuals in this case. Here’s what we accomplished for them:
- Represented LG Phillips, a leading supplier of video displays. Protected their pre-petition claim. Carefully and accurately monitored this case. Advised our client as to the impact of the case on its on-going multi-million dollar business with Delphi.
- Prepared and filed numerous claims involving millions in liabilities to our clients resulting in substantial recoveries.
- Negotiated and resolved claims objections with Debtor’s counsel
Successfully negotiated the filing of late filed claims on behalf of clients who failed to appreciate the need for timely filing.
Lakelaw represented the Village of Gurnee in this chapter 11 case. Even though the matter was filed in Delaware, Lakelaw rapidly got up to speed and assured that the Village’s utility bills, well in excess of $100,000, were paid in full through.