LBI Media, Inc., Chapter 11 Disclosure Statement Approved

Norman Kinel

Norman Kinel

Norman Kinel is a New York-based attorney at Squire Patton Boggs, LLP, who serves as head of its Creditors’ Committee practice and as partner in the Restructuring & Insolvency Practice Group. As reported by Law360 in January, 2019, Norman Kinel represented the official committee of unsecured creditors in a case in which a Delaware U.S. bankruptcy judge approved a disclosure statement in connection with a proposed plan proposed by Debtor LBI Media, Inc.

The disclosure statement was approved after objections by junior noteholders, who requested that more details be provided before its approval. Their specific concerns centered on undisclosed details regarding LBI’s plans to sell the company, top officer compensation provisions, and inadequate review time. The noteholders alleged that with the additional information it sought the chances of having a “contested hearing on the disclosure statement itself” would be minimized.

Mr. Kinel noted that this did not affect the committee’s ongoing investigation of whether any valid claims against California-based LBI or others existed. The committee he represented had yet to decide on whether it would support the Chapter 11 plan presented by LBI.

TMA’s 2019 Annual Meeting in Cleveland

Turnaround Management Association pic

Turnaround Management Association
Image: turnaround.org

Seasoned bankruptcy lawyer Norman Kinel has earned numerous awards, including the 2018 Turnaround Atlas Award for Chapter 11 Restructuring of the Year ($500 million to $1 billion) for the Optima Specialty Steel chapter 11 case. Mr. Kinel led the representation of the official committee of unsecured creditors, and unsecured creditors in the case received a 100% recovery on their claims.

To keep abreast about the latest developments in the field of turnarounds, Norman Kinel maintains membership with the Turnaround Management Association (TMA). TMA is a professionally diverse organization whose close to 10,000 members worldwide include attorneys, turnaround practitioners, accountants, government employees, liquidators, and judiciary members in the renewal, corporate health, and corporate restructuring fields. It will be holding the 2019 TMA Annual on September 25-27 at the Hilton Downtown in Cleveland, Ohio. The affair coincides with the organization’s 31st anniversary and features golf at Canterbury Golf Club on the first day.

The opening program in the afternoon of September 25th will delve into the economy’s major trends and how these changes will affect restructuring opportunities. Topics for the educational breakout sessions include Multilateral Negotiation Strategies in Capital Restructuring and Ethically-Challenged Restructuring Cases. There is also on the schedule a networking breakfast and a networking lunch. The closing reception will be at the iconic Rock & Roll Hall of Fame. For more information, visit www://annual.turnaround.org/.

Norman Kinel on the Roster of 2019 O’Neill Bankruptcy Institute

 

Norman Kinel

Norman Kinel

Based in New York, Norman Kinel serves as a partner in the Restructuring & Insolvency Practice Group of Squire Patton Boggs. In recognition of his achievements, he has been recognized again in 2019 by Super Lawyers as one of New York City’s top bankruptcy lawyers.

In May 2019, Norman Kinel will be among the professionals who will speak at the William J. O’Neill Regional Bankruptcy Institute, sponsored by the Cleveland Metropolitan Bar Association (CMBA),which will address a variety of bankruptcy law issues. At the event, Mr. Kinel will serve as a member of a panel focusing on the topic “Retail Apocalypse Now?” He will speak alongside fellow professionals who possess a substantial knowledge of and experience with law, financial services, and accounting. The panelists on the roster represent firms with offices across the country.

A number of individuals with knowledge of financial trends have projected that the overall 2019 retail sector will continue its trajectory of disruption – and not only in terms of digital transformation – as consumer power and demand increase, and companies continue to fight for customers.

Mr. Kinel’s panel, entitled “Retail Apocalypse Now?”, will examine numerous issues relating to the surge in retail bankruptcy cases, including: extending trade credit, critical vendor issues, administratively insolvent cases, special concerns of commercial landlords and the composition and role of creditors’ committees in retail cases.

Amid rising global economic and political unrest, the relatively prosperous American economy demonstrated mixed results for retailers in 2018 that included some notable bankruptcies for a range of businesses. It may be that 2019 is shaping up to be a year in which survival for many retail businesses will involve thorough-going change in response to uncertainty.

Unsecured Creditors Represented in Constellation Enterprises Case

 

Norman Kinel

Norman Kinel

An attorney with Squire Patton Boggs, Norman Kinel has extensive experience in complex business bankruptcy cases involving chapter 11 filings.

In August 2017, Norman Kinel represented a committee of Constellation Enterprises LLC’s unsecured creditors in urging a federal appeals court judge to overturn a Bankruptcy Court decision denying approval of a settlement agreement negotiated by the creditors’ committee for the benefit of unsecured creditors.

The settlement was denied on the basis that it ran afoul of the U.S. Supreme Court’s recent decision in Czyzewski v. Jevic Holding Corp. The Committee argued, however, that the holding in Jevic did not apply to the facts presented in the Constellation case and thus should not have been relied upon as a basis for the decision. In particular, the Committee argued that there is no priority scheme within the Bankruptcy Code that governs the distribution of non-estate assets. In addition, unlike the Constellation case, Jevic had nothing to do with a third-party purchaser’s rights to contribute its own property or funds to other creditors.

The Committee further argued that the Bankruptcy Court had failed to apply the ruling in In re ICL Holding, a Third Circuit precedent that permitted a third-party to contribute non-estate property in connection with a settlement, even if the distributions to be made were not in strict accordance with the absolute priority rule.

Unfortunately, when the Constellation chapter 11 cases was converted to chapter 7, the Committee’s appeal was dismissed and certain noteholder parties to the settlement agreement, who were to have contributed substantial cash and other consideration to a trust to be established for the benefit of unsecured creditors, instead received a multi-million-dollar windfall, with unsecured creditors receiving no distribution.