January 2012
Kim Hillary has been designated as a partner of Schafer and Weiner
Ms. Hillary specializes in representing companies and individuals in Chapter 11 and 7 bankruptcies and out-of-court restructurings and workouts. Ms. Hillary has represented clients in a broad range of industries, including automotive, real estate, and homebuilding. Ms. Hillary joined the firm as an associate in 2004 after graduating with honors from the Wayne State University Law School. Schafer and Weiner congratulates Ms. Hillary on becoming its newest partner.
January 2012
John Stockdale, Jr. obtains dismissal of nondischargeability lawsuit
An equipment creditor sought to deny a debtor-business owner a chapter 7 discharge on the basis that the Debtor undervalued several business interests in his bankruptcy petition. The creditor claimed that the alleged under-valuations were fraudulent statements made in connection with the bankruptcy case. Mr. Stockdale, who has significant bankruptcy and valuation experience, vigorously fought the creditor, including filing a motion to dismiss the complaint. As a result of Mr. Stockdale's efforts, the creditor agreed to voluntarily dismiss its nondischargeability lawsuit against the debtor.
December 2011
Joseph K. Grekin and John Stockdale, Jr. apply the LLC Act's new conversion rules
In 2011, the Michigan legislature amended Michigan's limited liability company act, MCL ยง 450.4101 et seq. to permit the conversion of a domestic corporation to a domestic limited liability company. There are several reasons why a business owner might convert a corporation to a limited liability company, which include, without limitation, increased flexibility in governance of the business and superior creditor protections in the limited liability form. Applying the new law, Mr. Grekin and Mr. Stockdale effectuated the conversion of a Michigan subchapter S corporation to a Michigan limited liability company in connection with the limited liability company's issuance of member units pursuant to a subscription agreement.
November 2011
Tracey Porter Attends Seminar on Foreclosures and Loan Workout Procedures
Tracey Porter attended a National Business Institute seminar on foreclosures and loan workout procedures. The seminar focused on the foreclosure process, including debtors' rights and the recent problems banks have faced during foreclosure proceedings. The seminar also discussed various aspects of short sales and other options debtors have when unable to make monthly mortgage payments. Finally, the seminar included information on loan workout procedures, including negotiating and entering into forbearance agreements. A portion of Ms. Porter's practice is dedicated to helping debtors negotiate with banks when they are faced with the inability to make mortgage payments and possible foreclosure.
November 2011
Joe Grekin and Tracey Porter Obtain Preliminary Injunction
Joe Grekin and Tracey Porter successfully obtained a preliminary injunction enjoining a business partner from entering the premises of a local company and forbidding him from participating in the day-to-day management of the business after demonstrating that the business partner is unlawfully taking money from the company, forging checks and disrupting the everyday affairs of the company.
September 2011
John Stockdale, Jr. obtains dismissal of collection suit and complete release for debtor
A nursing home filed suit against the wife of a former resident to collect the debt incurred by the former resident. Mr. Stockdale prepared a motion for summary disposition on the basis that the nursing home's contract did not, as alleged, contain the wife's personal guarantee and shared the motion with the nursing home. As a result of the arguments contained in the unfiled motion, Mr. Stockdale negotiated a dismissal of the lawsuit against the wife, which contained a full and complete release from the nursing home to the wife. The release was significant because it prohibited the nursing home from, among other things, seeking to recover from the wife any money or property that the former resident transferred to the wife.
September 2011
Kim Hillary becomes Board Member at Large of the Michigan Chapter of the International Women's Insolvency and Restructuring Confederation
Ms. Hillary has been designated as a Board Member at Large for the Michigan Chapter of IWIRC (International Women's Insolvency and Restructuring Confederation). Ms. Hillary is also a member of the MIWIRC Programming Committee.
August 2011
Brendan Best authors article for ABI newsletter
Brendan Best wrote an article for the American Bankruptcy Institute's Ethics Committee Newsletter which has been published in the August 2011 edition. The article is entitled, "In re Wireless Telecommunications Inc. Court Weighs in on Allowance of Professional Fees, Approves 12% Voluntary Reduction by Debtors' Counsel", and focuses on the disgorgement of professional fees in Chapter 11 cases. (http://www.abiworld.org/committees/newsletters/ethics/vol8num4/reduction.html).
August 2011
Michael E. Baum and John Stockdale, Jr. assist local construction company with chapter 11 process
Michael E. Baum and John Stockdale, Jr. represent local home construction company, which was beset by state court litigation and unprofitable contracts, in its chapter 11 bankruptcy case. While this case is in the early stages, Mr. Baum and Mr. Stockdale are working with the Debtor, the creditor's committee, construction lien creditors, and certain homeowners to complete profitable projects while shedding the unprofitable construction projects.
August 2011
Michael E. Baum and John Stockdale, Jr. obtain entry of Critical Vendor Order in chapter 11 case
After two days of hearings and the submission of testimony from the business's CFO, Michael E. Baum and John Stockdale, Jr. successfully argued for entry of a Critical Vendor Order in a construction contractor's chapter 11 case. This order, which is infrequently granted, allows a chapter 11 debtor to pay certain necessary prepetition claims of creditors during the first 21 days of the case.