BANKRUPTCY LITIGATION

Although bankruptcy litigation presents unique challenges and stress, the Storch Amini team excels in bringing to bear solutions that produce optimal results in a difficult context. Our bankruptcy litigators have significant experience investigating, prosecuting and trying complex cases. Clients benefit from our substantive understanding of a wide variety of businesses and our ability to quickly grasp the financial factors at work in a given matter.

We have achieved exceptional results for our clients by implementing creative solutions and successfully advancing sophisticated, often novel legal theories that set us apart from other bankruptcy litigators.

Storch Amini has successfully pursued claims against directors and officers of distressed companies on different theories of liability. We’ve also obtained substantial recoveries for our clients in fraudulent conveyance, avoidance and preference actions, as well as for vendor and customer fraud, turnover proceedings, lender liability claims, pre-petition state law claims and insurance coverage disputes.

Our clients include trustees, debtors-in-possession, creditor’s committees, creditors, investors, secured lenders and insiders in a broad range of matters arising in both the main bankruptcy case and adversary proceedings. 

Examples of our experience include:

  • Storch Amini is serving as counsel to the official committee of unsecured creditors of Premier Exhibitions, Inc., the company behind the traveling “Titanic” and “Bodies” exhibitions.  The company owns more than 5,500 artifacts salvaged from the wreckage of the Titanic in a series of expeditions undertaken since 1987, and is seeking bankruptcy court authorization to sell select artifacts retrieved during the 1987 expedition free and clear of any interest the Republic of France has in the same so the company can repay over $15 million in debt owed to its creditors.
  • Storch Amini is representing the liquidating trustee of FCC Holdings, Inc. in breach of fiduciary duty litigation against the company’s former officers.  Prior to the commencement of its bankruptcy case, FCC owned and operated 41 for-profit schools in 14 states under the “Anthem Education” and “Florida Career Colleges” names, and was valued at over $150 million.  The trustee’s complaint alleges the named defendants caused the company to repeatedly draw millions of dollars in federal student loans the company was not entitled to under Department of Education regulations, and that the Department of Education responded by prohibiting further draws absent satisfaction of onerous conditions, which in turn resulted in the company’s forced sale of its schools at fire sale prices, to the detriment of its creditors.  
  • Storch Amini was retained as special counsel by the Chapter 7 Trustee of a major hospital to investigate, prosecute, negotiate, mediate, and settle claims against former officers and professionals. After conducting a substantial and intensive investigation of the hospital’s affairs and reasons for its failure, we obtained multi-million dollar recoveries on behalf of the hospital’s creditors in nearly a half dozen settlements. In addition, we were engaged to resolve the hospital’s health insurance plan’s refusal to process and pay the claims of numerous former employees. After an investigation of the potential causes of action against the insurer, we obtained a settlement by which the health insurance plan allowed for the payment and processing of the former employees’ claims.
  • In the Ames Department Stores bankruptcy proceedings, Storch Amini handled over 900 adversary proceedings and recovered over $32 million on behalf of the estate.  To resolve the proceedings, we instituted innovative mediation and binding mediation procedures and brought numerous cases to trial, and even to appeal through the second circuit.
  • Also in the Ames Department Stores bankruptcy proceedings, Storch Amini handled an adversary proceeding seeking a declaratory judgment that Ames’s chapter 11 estate is entitled to millions of dollars escrowed by Lumbermens Mutual Casualty Company to secure potential obligations to Ames under its workers compensation policy.  After Lumbermens commenced a state law insurance insolvency proceeding, Lumbermans attempted to argue that the Southern District of New York, where the bankruptcy proceedings were pending, lacked jurisdiction to adjudicate the dispute as a result of the McCarran-Ferguson Act and Illinois Insurance Code.  The Bankruptcy Court issued a report and recommendation in Ames’ favor, setting the stage for a settlement that nearly tripled the amount of cash available for distribution to Ames’ creditors.
  • On behalf of debtor Value City Holdings, Inc., Storch Amini handled over 600 adversary proceedings and recovered over $8 million on behalf of the estate.
  • In the National Consumer Mortgage bankruptcy, Storch Amini brought adversary proceedings against Bank of America and the Rio Hotel and Casino and recovered millions of dollars transferred as part of a Ponzi scheme.
  • In the Douglas Palermo bankruptcy, we sued to avoid a fraudulent transfer by the Debtor to the defendant. After a jury trial, we obtained a judgment for over $900,000, the full amount of the transfer plus attorneys’ fees and costs. The judgment was affirmed by the Second Circuit.
  • Bringing pre-petition causes of action on behalf of trustees and debtors-in-possession against former officers, lawyers, accountants, lenders or other third-parties.