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Bankruptcy Cases

Walding, LLC has represented banks, corporate clients, debtors, committees of unsecured creditors - both official and on an ad hoc basis - served as court appointed fiduciary or ombudsman as well as in other capacities in a variety of bankruptcy cases.  While a workout of a loan relationship is usually the best solution for both lender and borrower, many times a borrower will seek bankruptcy relief in order to restructure its obligations (chapter 11) or liquidate its property (chapter 7).  Walding, LLC has years of experience handling bankruptcy cases.  This includes negotiating cash collateral orders protecting a lender’s cash collateral, negotiating adequate protection for the use of a creditor's other collateral, negotiating and participating in sales of real and personal property conducted under the Bankruptcy Code, negotiating treatment under a chapter 11 plan of reorganization and defending preference actions for recovery of payments received by creditors prior to the filing of a bankruptcy case.  The cases below scratch the surface of the firm's experience and capabilities to navigate the particularities of the bankruptcy code in advocating for its clients.

A selection of engagements in which Walding, LLC has been involved include the cases listed below:

  • Remington Outdoor Company, Inc., et al., 20-81688, N.D. Alabama: Represented two (2) different successful bidders and one (1) personal injury claimant in the various Remington entities bankruptcy cases.

  • Roundhill Group, LLC v. Remington Outdoor Company, Inc., AP 21-80033, N.D. Alabama: Represented buyer of assets of debtor in dispute regarding access to debtor’s facility and compliance with original Asset Purchase Agreement.

  • FM Coal, LLC, et al., 20-02783, N.D. Alabama: Initially engaged as local counsel for the Official Committee of Unsecured Creditors and eventually litigation trustee for the debtor’s estate after reorganization.

  • Stanford, Jones & Loyless, LLC, 20-00503, N.D. Alabama: Represented a creditor holding a 2nd mortgage granted as part of DIP Financing in a related case.

  • CMK Investment Properties, LLC, 20-00862, N.D. Alabama: Served as one of the first Subchapter V trustees in the Northern District of Alabama.

  • Woods Electric & Consulting, LLC, 20-028433, N.D. Alabama: Served as Subchapter V SBRA trustee in the Northern District of Alabama in consensually confirmed Subchapter V reorganization plan.

  • American Printing Company, Inc., 19-01846, N.D. Alabama: Represented primary pre-petition secured lender in liquidating chapter 11 and negotiated both post-petition DIP financing and 363 sale of all business assets.

  • Robert & Frances Stanford, 19-01844, N.D. Alabama: Represented creditor holding mortgage and guaranties on business obligations owed by underlying borrower. Our firm lead action to convert initial Chapter 11 case to Chapter 7 upon evidentiary hearings.

  • Pizza Palz, Inc., 17-40556, N.D. Alabama: With only one (1) week’s engagement, filed a chapter 11 bankruptcy for a franchisee of eight (8) Domino’s Pizza locations and negotiated debtor-in-possession from the franchisor in addition to other first day motions to secure payment of pre-petition wages for the debtor’s over 100 employees.

  • New WEI, Inc. f/k/a Walter Energy, Inc., 15-02741, N.D. Alabama: Represented various creditors of debtor, including: counterparties to various lease contracts for oil & gas rights; utility gas company providing natural gas utility service to debtor; and state worker compensation reimbursement fund regarding various rights and negotiations with debtor to preserve and protect various rights and payment streams.

  • Neal & Harwell, PLC v. Blue Cross & Blue Shield of Alabama, AP-15-00073, N.D. Alabama: Case involving interpleader action of funds maintained by plaintiff law firm against insurance company in two (2) chapter 7 bankruptcy cases.

  • Adinath Corp. and Simply Fashion Stores, Ltd, 15-16885, S.D. Florida: Representation of a secured creditor with certain point of sale systems as collateral for its secured claim and negotiation of use of said systems in debtor’s going out of business sales.

  • Gloria Franklin v. James Johnston, AP14-3001 M.D. Alabama: Represented a creditor/former client of a debtor/attorney in prosecuting and settling an adversary proceeding for nondischargeability of creditor/former client’s claim against the debtor/attorney’s estate in which the creditor/former client received a structured repayment over time.

  • Splish Splash Car Wash, Inc., 14-1285, N. D. Alabama: Represented a secured creditor in a bankruptcy in which the underlying debt was sold from the original creditor to a purchaser of the debt and negotiated on behalf of the secured creditor the eventual sale of real and personal property related to an operating car wash.

  • Splash & Dash, LLC, 13-40884, N.D. Alabama: Through objections to the debtor’s proposed plan of reorganization and negotiation, the firm was able to facilitate the sale of its client’s loan evidencing its secured claim against the debtor’s estate to a third party resulting in the dismissal of the bankruptcy thus enabling the debtor to continue its business operations.

  • Troy Plaza and Midtown Carwash, 12-12151 and 13-11012, M.D. Alabama: Troy Plaza initially filed bankruptcy and attempted to invoke its automatic stay to prevent foreclosure on the Midtown Carwash real property. Due to the firm's efforts, the bankruptcy court found that the automatic stay of a related entity did not extend to another entity due to the facts of the case, which resulted in Midtown Carwash filing for bankruptcy protection, as well. This strengthened the client's ability to negotiate for an acceptable treatment in the confirmed plan of reorganization.

  • Adams Produce Company, 12-2036, Northern District of Alabama: Although there was no certainty of reimbursement for its fees and expenses, Walding, LLC represented the former employees of Adams Produce Company that were terminated from their jobs upon the filing of bankruptcy - leaving former employees with unpaid wages for the 3 weeks prior to the filing of the bankruptcy petition.  By utilizing an ad hoc committee of former employees, Walding, LLC achieved over a 90% recovery for unpaid wages for former employees.

  • Merritt & Walding Properties, LLP, 11-2322, Southern District of Alabama: In a bankruptcy for a limited liability partnership, Walding, LLC represented one of the secured creditors in negotiating adequate protection payments to be received by the lender during the transfer of the secured claim between two unrelated entities.  Later in the case, the firm negotiated a resolution enabling the debtor to sell certain property encumbered by a disputed mortgage and secured and negotiated the sale of a shuttered convenience store and carwash.  All of this was achieved while enabling the debtor to continue operation of other properties to maximize the secured creditor's recovery and enable the debtor to operate a more efficient business after bankruptcy.  

  • Reflections Carwash, 11-33377, Middle District of Alabama:  During the course of pre-bankruptcy negotiations and workout, the firm represented a secured creditor in acquiring a deed in lieu of foreclosure that was never recorded.  The debtor eventually filed bankruptcy and the firm  successfully advocated to the court that the deed in lieu of foreclosure exempted the described property from the bankruptcy estate.  This allowed for a consensual plan and resolution regarding  the ultimate disposition and management of the property.

  • Troy Plaza and Midtown Carwash, 12-12151 and 13-11012, Middle District of Alabama:  Troy Plaza initially filed bankruptcy and attempted to invoke its automatic stay to prevent the firm from foreclosing on the Midtown Carwash real property.  Due to Walding, LLC's efforts, the bankruptcy court found that the automatic stay of a related entity did not extend to another entity due to the facts of the case, which resulted in Midtown Carwash filing for bankruptcy protection.  This strengthened the secured client's ability to negotiate for ultimately acceptable treatment in a plan of reorganization.

  • Kleen Air Research, Inc., 11-80145, Northern District of Alabama: Walding, LLC represented a secured lender in negotiating a cash collateral order for protection of the lender’s interest in accounts receivable and other collateral. 

  • Just B Incorporated, 09-81524, Northern District of Alabama: The firm represented a secured lender in an auction of commercial real estate and equipment conducted through bankruptcy court. 

  • Lambert Properties, LLC, 09-14987, Southern District of Alabama: Walding, LLC succeeded in persuading the debtor to voluntarily dismiss its bankruptcy after the firm filed a motion to dismiss based on the case involving a single asset of real estate case, which was filed on the eve of a foreclosure sale for said property by the sole creditor in the bankruptcy.

  • Watts, 09-30663, Middle District of Alabama: The firm served as counsel for a member of a 3 creditor unsecured creditor committee that worked to preserve the value of a guarantor’s ownership interest in various limited liability companies for the benefit of all creditors in the bankruptcy case through conversion to chapter 7 from chapter 11.

  • Fordham, 08-13761, Southern District of Alabama: Walding, LLC negotiated treatment of lender in chapter 11 bankruptcy case whereby debtor retained interest in commercial property owned for income purposes from lease payments.

  • In addition to representing lenders in regular bankruptcy proceedings, we have represented creditors in adversary proceedings initiated in bankruptcy courts in Alabama and other jurisdictions in defense of “preference payments”, which are payments received from a debtor prior to filing bankruptcy.