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| 2008 – FIRM CONTINUES TO REPRESENT NUMEROUS REAL ESTATE ENTITIES IN ATTEMPTING TO RESTRUCTURE LOAN OBLIGATIONS OUTSIDE OF COURT Faced with the continuing problems confronting the real estate segment of the economy, Stichter Riedel continues to represent numerous home builders, developers, and land owners involved in many different types of real estate development, from the construction of single family houses to condominium developments to land development. The firm continues to seek creative solutions that will maximize the value of the real estate holdings for the benefit of all parties while addressing liquidity and cash flow issues that are frequently prevalent in these matters. |
| STEPHEN R. LESLIE LEADS INTERACTIVE DISCUSSION AT TAMPA BAY BANKRUPTCY BAR MEETING - October 15, 2008 Shareholder Stephen R. Leslie led an interactive discussion centered around several factual scenarios at the October 15, 2008 luncheon of the Tampa Bay Bankruptcy Bar Association that was attended by Judges Paskay, Williamson, and McEwen, as well as by numerous members of the Association. His discussion was titled "Hands-on Bankruptcy: Real Problems and Real Solutions." |
| ATTORNEY ELENA PARAS KETCHUM RECEIVES AV RATING FROM MARTINDALE-HUBBELL - Oct 10,2008 Elena Paras Ketchum, a shareholder with Stichter, Riedel, Blain & Prosser, was awarded an AV Peer Review Rating by Martindale-Hubbell Law Directory. Martindale-Hubbell has published ratings of lawyers continuously since 1868. The AV Peer Review Rating identifies a lawyer with "very high to preeminent" legal ability and "very high" ethical standards. It is the highest rating issued by Martindale-Hubbell. Martindale-Hubbell's ratings are derived from interviews with members of the bar and the judiciary. The ratings reflect a lawyer’s expertise, experience, integrity and overall professional excellence. The "AV" rating requires a minimum of ten years in the practice of law, and it is a reflection of the high regard in which Ms Ketchum is held by the bench and bar that she received this rating in only her eleventh year of practice. She joins eight other shareholders at Stichter, Riedel who are also "AV" Rated, Don M. Stichter, Harley E. Riedel, Russell M. Blain, Richard C. Prosser, Wanda H. Golson, Charles A. Postler, Scott A. Stichter and Stephen R. Leslie. Thus, nine of Stichter, Riedel's thirteen lawyers, and all who have practiced for at least ten years, have been awarded the highest Martindale-Hubbell rating. |
| EDWARD PETERSON SPEAKS ON TROUBLED REAL ESTATE AT THE CUMBERLAND SCHOOL OF LAW BANKRUPTCY LAW SEMINAR - October 3, 2008 Shareholder Edward J. Peterson spoke at the 19th-Annual Bankruptcy Law Seminar sponsored by the Cumberland School Of Law in Birmingham, Alabama, on the subject of "News from the War Zone: Bankruptcy Issues on the Front Lines of the Real Estate Crisis." Other speakers included Bankruptcy Judges Jack Caddell, Benjamin G. Cohen, James J. Robinson, Dwight H. Williams, Jr., Margaret A. Mahoney, Tamara O. Mitchell & C. Michael Stilson. Mr. Peterson was one of four practiticing lawyers selected to speak at the seminar. |
| BANKRUPTCY COURT CONFIRMS CHAPTER 11 PLAN FOR TAMPA CHANNELSIDE CONDOMINIUM PROJECT– October 1, 2008 On October 1, 2008, the United States Bankruptcy Court for the Middle District of Florida entered an order confirming the plan of reorganization of Towers of Channelside, LLC. The Debtor had filed for Chapter 11 protection in February 2008. The plan featured a restructuring of obligations to a bank group led by Wachovia Bank, which was owed approximately $58 million on the petition date, and to unsecured creditors with claims of approximately $32 million. Harley E. Riedel and Edward J. Peterson led the firm’s representation in this case. Read more in the Tampa Bay Business Journal. |
| SALE OF COMMUNITY ORGANIC GROCERY STORE CONCLUDED – SEPTEMBER 25, 2008 On September 25, 2008, Nature’s Harvest Market and Deli, Inc. and Taylor Brothers, LLC closed the sales of all of their assets to a third party purchaser, which currently owns and operates an organic grocery store in St. Petersburg, Florida. The sale of Nature’s Harvest preserves one of the oldest organic grocery stores in the Tampa Bay area. The store will be renamed "Rollin’ Oats." It is further expected that a majority of the employees will retain their jobs. The sales involved negotiating and ultimately reaching out-of-court workouts with the secured creditors of both Nature’s Harvest and Taylor Brothers. Elena Paras Ketchum was primarily responsible for handling these cases for the firm. |
PLAN OF REORGANIZATION CONFIRMED FOR FLOORING COMPANY – SEPTEMBER 24, 2008 |
TAMPA-BASED SEAFOOD RESTAURANT CHAIN FILES FOR RELIEF UNDER CHAPTER 11 – September 2, 2008
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HARLEY E. RIEDEL PARTICIPATES IN NATIONAL ASSOCIATION OF HOMEBUILDERS SEMINAR - AUGUST 21, 2008 |
| BANKRUPTCY COURT ENTERS FINAL ORDER APPROVING POST-PETITION FINANCING IN NAPLES CONDOMINIUM CASE – JULY 25, 2008 Following a final hearing on July 21, 2008, the United States Bankruptcy Court, Ft. Myers Division, entered an order approving a $26.1 million post-petition financing facility sought by the three Debtors (Ecoventure Wiggins Pass, Ltd., Aqua At Pelican Isle Yacht Club Marina, Inc., and Pelican Isle Yacht Club Partners, Ltd.). The final order also contained adequate protection provisions with respect to claims in excess of $90 million held by a group of pre-petition lenders. The post-petition financing will enable the Debtors to complete construction of the luxury waterfront condominium and marina project and will provide additional funds to market and maintain the property, including the payment of the Debtors’ share of homeowners’ expenses for an extended period of time following the completion of construction. The Court also approved at hearings on July 21st and 24th the assumption of a contract for the sale of two of the condominium units, together with a marina slip and cottage, for in excess of $12 million and the retention of Gerard A. McHale, Jr., as Chief Restructuring Officer for the Debtors. |
| TAMPA-BASED CHAIN OF STEAKHOUSE RESTAURANTS FILES FOR RELIEF UNDER CHAPTER 11 – JUNE 27, 2008 On June 27, 2008, Stichter Riedel filed Chapter 11 Petitions for Sam Seltzer’s Steak Houses Of America, Inc., and fourteen subsidiary corporations. On the Petition Date, the Debtors operated nine casual dining restaurants on the West Coast of Florida. Simultaneously with the filing, the Debtors filed motions to obtain post-petition financing in the amount of $1 million from Capital Resources Partners. The Debtors’ motions to use cash collateral and other first day motions were granted shortly after the filing of the Chapter 11 petitions. Interim post-petition financing of $200,000 was approved pending a final hearing. |
| NAPLES CONDOMINIUM AND MARINA PROJECT FILES FOR CHAPTER 11 PROTECTION AND SEEKS APPROVAL OF POST-PETITION FINANCING – JUNE 24, 2008 Stichter Riedel filed Chapter 11 Petitions for Ecoventure Wiggins Pass, Ltd., Aqua At Pelican Isle Yacht Club Marina, Inc., and Pelican Isle Yacht Club Partners, Ltd. on June 24, 2008. At the same time, the firm filed a motion seeking approval of a $26.1 million financing facility from Cypress Lending Group, Ltd. The three Debtors are the developers of a waterfront condominium project that includes an adjoining marina with boat slips. On June 27, 2008, Judge Alexander L. Paskay approved interim financing under the proposed DIP facility of $4.8 million. |
| Russell M. Blain Elected Chair of Business Law Section of The Florida Bar—June 19, 2008 Russell M. Blain has been elected to serve as chair of the Business Law Section of The Florida Bar. The Business Law Section comprises members of The Florida Bar practicing in the areas of corporations, securities, financial services, business litigation, bankruptcy, creditors’ rights, intellectual property, antitrust, franchise, trade regulation, and other areas that provide services to the business and consumer community. The Business Law Section provides a forum for the discussion and exchange of ideas leading to the improvement of the laws relating to these areas of law. The Section originates, advocates, and monitors legislation; sponsors continuing legal education programs; publishes materials including a yearly journal of state and federal business law developments; and provides networking and liaison opportunities for lawyers, judges, academicians, and law students. Mr. Blain was elected to the chair position of the Section at the annual convention of The Florida Bar held in Boca Raton in June. He previously has chaired the Continuing Legal Education, Bankruptcy/Uniform Commercial Code, Bankruptcy Judicial Liaison, and Legislation committees of the Business Law Section and has served on the Executive Council and as secretary/treasurer of the Section. |
| BANKRUPTCY COURT CONFIRMS CHAPTER 11 PLAN FOR MARCO ISLAND CONSTRUCTION COMPANY – JUNE 19, 2008 On June 19, 2008, the United States Bankruptcy Court, Ft. Myers Division, entered an order confirming the plan of reorganization of Enterprise Construction, Inc. The Debtor had filed for Chapter 11 protection in October, 2007, with post-petition financing being provided by principals of the Company. The plan featured a restructuring of obligations to Regions Bank, a voluntary surrender of collateral (homes under construction) to Bank of America, subordination of the DIP financing to permit payments to general unsecured creditors, and a new contribution by principals to fund distributions to unsecured creditors. The plan also contained injunctive provisions and releases prohibiting actions against the principals who had funded the Chapter 11 plan. At an evidentiary hearing held at the time of confirmation, the Bankruptcy Court also found that the value of the collateral surrendered to Bank of America fully satisfied Bank of America’s debt and that Bank of America had no unsecured deficiency claim. Stephen R. Leslie and Daniel R. Fogarty led the firm’s representation in this case. |
| Stichter, Riedel Lawyers Elected to Positions in Tampa Bay Bankruptcy Bar Association - June 6, 2008
Elena Paras Ketchum was inducted at the annual dinner of the Tampa Bay Bankruptcy Bar Association to serve as the Treasurer of the TBBBA for the 2008-2009 term. Ms. Ketchum had previously served as a member of the board of directors of the TBBBA from 2006 to 2008. In addition, Edward J. Peterson was inducted as a director of the TBBBA. Mr. Peterson was first elected as a director in 2007. |
| Plan of Reorganization Confirmed for Cable Manufacturer - June 4, 2008 On June 4, 2008, the United States Bankruptcy Court for the Middle District of Florida, Tampa Division, entered an order confirming the Plan of Reorganization of Performance Line Hardware, LLC under which Performance Line will continue as a going concern under its prepetiton management and with the same equity ownership structure that existed prepetition. Performance Line manufactures specialty cable, wire rope, and strand products from stainless steel, drawn and hot-dipped galvanized carbon steel, carbon steel, monel, inconel, tin-plated phosphor bronze, silicon tin bronze, titanium, MP35N and many other specialty alloys. Performance Line's customers include OEM manufacturers in a wide variety of industries including the military, government, medical, power utilities, telecommunications, cable television, petro-chemical, oil exploration and marine industries. Stichter, Riedel promulgated the plan on behalf of Performance Line and has represented Performance Line as a debtor-in-possession since the case was filed in June 2007. |
| Florida Uniform Fraudulent Transfer Act interpreted by District Court - May 21, 2008 On May 21, 2008, the District Court for the Middle District of Florida ruled in favor of Stichter, Riedel's client and held that the court appointed Receiver could pursue a third party who received a benefit from a fraudulent transfer rather than receiving the actual fraudulent transfer and that the pleading fraud with particularity requirements under FRCP 9(b) are not applciable to pleading causes of action under the Flroida Uniform Frauduelnt Transfer Act. |
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Plan of Reorganization Confirmed in Related Cases of Shutter Manufacturers – May 1, 2008
On May 1, 2008, the United States Bankruptcy Court for the Middle District of Florida, Tampa Division, entered an order confirming the Plan of Reorganization of four related entities, Valco Enterprises, Ltd., Shutter Enterprises Group, Inc., Roll-a-Way, Inc. and Valco Group, Inc. The Debtors were engaged in the business of manufacturing, selling, and installing of various types of shutter systems throughout Florida. The Plan followed a court-approved sale of substantially all of the Debtors' assets to Qualitas Manufacturing, Inc., a leading national shutter manufacturer. Stichter, Riedel promulgated the plan on behalf of the Debtors and has represented the Debtors as a debtors-in-possession since the case was filed in October 2007. Elena Paras Ketchum was primarily responsible for handling the case for the firm. |
| Joint Plan of Reorganization Confirmed - March 5, 2008
On March 5, 2008, the Bankruptcy Court for the Middle District of Florida, Ft. Myers Division, ruled from the bench that the Court would confirm the Joint Plan of Reorganization of RCMP Enterprises, LLC and Carmello Natoli in the case of Weeks Landing, LLC. Weeks Landing is one of four related debtors involved with a planned marina/condominium real estate project in Estero, Florida, at the end of Coconut Road. Stichter, Riedel promulgated the plan on behalf of RCMP, and represented RCMP as debtor-in-possession lender since the cases were filed in 2006 and throughout its involvement in the cases. |
| Sale of Roofing Supply Company Concluded - February 29, 2008 On the same day as the Sun Coast Hospital closing, Stichter Riedel also handled the closing of the sale of substantially all the assets of Suncoast Roofers Supply, Inc., to SRS Acquisition Corporation, a subsidiary of AEA Investors, for $12.6 million. The Chapter 11 process culminated in a successful auction and approval of the sale by the Bankruptcy Court in Tampa. Suncoast had been one of the largest distributors of roofing supplies to Florida residential and commercial markets. The Debtor was able to close the sale on the same day as the entry of the order approving it because the Court, at the request of the Debtor, authorized an immediate sale and waived the ten-day stay imposed by Bankruptcy Rule 6004(h). Russell M. Blain has led the firm’s representation of Suncoast Roofers. |
| Sale of Not-for-Profit Hospital Concluded - February 29, 2008 On February 29, 2008, Sun Coast Hospital, Inc., and Sun Coast Imaging, Inc., closed the sale of substantially all their operating assets and the transfer of contracts and leases to Largo Medical Center, Inc., a wholly-owned subsidiary of Hospital Corporation of America, for $19.7 million. The sale was conducted upon approval obtained from the Bankruptcy Court in Tampa. The Sun Coast entities retained cash on hand, accounts receivable, and other non-operating assets. The proceeds from the sale, together with proceeds obtained from the disposition of retained assets, will fund a Chapter 11 plan. The closing of the sale transaction was handled by Charles A. Postler of the firm. |
| Continuum Care Services, Inc., d/b/a The Family/Cowcat Enterprises, Inc. – Sale of Sunrise Psychiatric Hospital closes.
- February 15, 2008 On February 15, 2008, the substantively consolidated debtors completed the sale of Sunrise Psychiatric Hospital to Louis Bombart for $12,000,000. |
| Continuum Care Services, Inc., d/b/a The Family/Cowcat Enterprises, Inc. – Bankruptcy Court order approving sale of Sunrise Psychiatric Hospital - February 6, 2008 On February 6, 2008 the U.S. Bankruptcy Court for the Southern District of Florida entered an order approving the sale of substantially all of the assets of the substantively consolidated Debtors, Continuum and Cowcat, to Louis Bombart for $12 million. It is anticipated, although not guaranteed, that the proceeds of the sale will be sufficient to pay all creditors in full. |
| Towers of Channelside Seeks Relief under Chapter 11 – Jan 25, 2008
Stichter Riedel filed in the United States Bankruptcy Court for the Middle District of Florida a voluntary petition for Towers of Channelside, LLC seeking reorganization under Chapter 11. Towers of Channelside is the developer of a high-rise condominium consisting of twin 29-story towers with 257 residential condominium units and additional ground-floor retail space, including three restaurants. Towers has approximately $84.5 Million in secured and unsecured debt. With the petition, the firm filed a number of motions, including a motion to sell units and a motion to use cash collateral. Both motions were granted by the Bankruptcy Court at an expedited hearing held shortly after the filing. |
| Bankruptcy Court Confirms Plan of Reorganization in Clearwater Cylinder Chapter 11 Case - January 16, 2008 The Bankruptcy Court in Tampa confirmed the plan of reorganization for Clearwater Cylinder Head, Inc. The plan provides for the continued operation of the company and for periodic payments to creditors, resolving disputes with GMAC, LLC, which had alleged an interest in the company arising from a $420 million judgment that it had obtained against an officer of the company. Scott A. Stichter was primarily responsible for handling the case for the firm. |
| Continuum Care Services, Inc. d/b/a/ The Family
- Court approves substantive consolidation of debtor with non-debtor affiliate and establishes bid and sale procedures. - January 7, 2008 The firm recently prevailed on a motion for summary judgment resulting in the substantive consolidation of the debtor, Continuum, who owns the license for a 100-bed psychiatric hospital, with a non-debtor affiliate, Cowcat Enterprises, Inc., the owner of the real property where the hospital is located. There is presently a stalking horse offer of $14,000,000. The auction is scheduled for January 28, 2008 at the Facility. The Sale Order is available for review on our Home Page under "documents." |
| More Firm News and Honors |
| Articles |
| Practical Issues Surrounding Section 363 Sales by Harley E. Riedel and Edward J. Peterson, 19 U. Fla. J. of Law and Public Policy 75, April 2008 (Read Full Text...) |
| Spoliation of Electronic Information: In re Quintus Corp. by Daniel J. Fogarty April 2007 (Read Full Text...) |
| Joint Check Agreements in Florida Bankruptcy Cases by Edward J.Peterson April 13, 2007 (Read Full Text...) |