Chapter XI liquidating bankruptcy. Installed as Executive Officer in October 1972, remained in office to handle liquidation. Substantial number of creditors, $12 million in claims, and prospects of major litigation. Settlements of major disputes, assets sold, approximately $1 million paid to creditors.
Managing Trustee (federal receiver in equity), appointed by U. S. District Court, San Francisco, July 1976, on motion of S.E.C. Seven year liquidation and litigation plan with litigation budget of $500,000 annually. Approximately 35 properties and investments liquidated. Five years litigation of malpractice suit. $4.5 million settlement (according to carrier, largest legal malpractice settlement in California to that date). Other litigation recovered approximately $3 million. 1976 estimate for repayment over seven years of $15 million on $19 million investment. On total cash flow of $80 million, ultimate return to investors over eight years of $34 million, approximately 180% of their investments. Approximately $6.5 million in legal fees supervised.
Successor Trustee in Bankruptcy, appointed by U.S. Bankruptcy Court, San Francisco, May 9, 1979. Approximately $150 million in unsecured claims reduced to approximately $45 million. Approximately $106 million paid out to secured, priority and administrative creditors. Several dozen major and large number of minor litigations. Approximately $9 million in legal fees supervised. Substantial settlements supervised and negotiated, including $67 million in U.S. Government claims settled on advantageous terms; $3.5 million recovered in malpractice claims; 8.8% dividend paid to unsecured creditors in 1993.
Trustee in Bankruptcy, appointed by U.S. Bankruptcy Court, San Francisco, September 23, 1985. $200 million in fraudulent sales, $83 million actually collected and spent. No assets. Approximately $6 million in trade debt. Obligation of about 4000 investors to federal and state tax authorities estimated at approximately $160 million. Global settlement, for estimated tax savings by investors of some $80 million; payment of $2.7 million by investors for benefit of trade creditors. $1.3 million additional recovered in preferences.
Trustee in Bankruptcy, appointed by U.S. Bankruptcy Court, San Francisco, February 2, 1983. $12 million investment fraud. Approximately $5 million recovered and returned to investors.
Receiver, appointed by U.S. District Court, San Francisco, February (March) 1985. $18 million investment fraud. Approximately $4 million recovered and returned to investors.
Trustee in Bankruptcy, appointed by U.S. Bankruptcy Court, San Jose, July14, 1986. $10 million investment fraud. Approximately $3.5 million recovered and returned to investors and creditors.
Receiver, appointed by U.S. District Court, San Francisco, February 13, 1987. Sale of approximately $7 million in real estate.
Trustee in Bankruptcy, appointed by U.S. Bankruptcy Court, Oakland, April 7, 1988. Liquidation of paint distributorship with five sales outlets. Sold assets through auction, conducted receivables collection, etc.
Trustee in Bankruptcy, appointed by U.S. Bankruptcy Court, San Jose, December 29, 1988. Administration of a hospital service contract of approximately $7 million annually for U.S. Army at Monterey Presidio. Joint venturers of project had filed involuntary bankruptcy and other litigation against each other. Settlement achieved at urging of trustee, and bankruptcy dismissed within thirty days.
Receiver, appointed by S. F. Superior Court, December 30, 1988, of twenty-six troubled partnerships and companies, approximately $70 million in real estate projects. Chapter 11 reorganizations for nine viable properties achieved in 1989, as “receiver in possession”. All debts paid; new general partner obtained, with option to sell for all limited partners. Judgment against principal of former general partner of $4 million.
Temporary Receiver, appointed by U.S. District Court, Central District (Los Angeles, California) for some twenty-six entities and individuals’ assets, based on CFTC enforcement proceeding against commodities futures market for customer commissions of at least $343 million, with current assets of $10-$14 million, and possible substantial claims against third parties. Made all reports to court and resigned in 1991.
Involuntary Chapter 11 against payroll tax deposit service in default of approximately $92 million on cash flow of $3.5 billion. Appointed March 26, 1991. Approximately $15 million recovered in 1993-1994 in various suits and sales of assets. Summary judgment of $29 million against principal and $10 million against an associate of principal obtained 1993. Recoveries of $65 million achieved in 1994 on settlement of suits brought against Lloyd’s of London and Peat Marwick. Distributions of approximately $.67 on the dollar (on $92 million in claims) for non-preference general unsecured creditors made by February 1998. Case closed in October 1999.
Referee, appointed by San Benito County (California) Superior Court, August 10, 1992. Dispute over security and performance issues on loan secured by substantial real estate. Sustained demurrer. Parties settled thereafter.
Appointed Trustee for the US Interest and federal equity receiver June 28, l996, to dispose of US interest in second largest card club casino in California, and meanwhile to supervise and direct its management. $80 million annual budget, 1600 employees, organized as joint venture of two partnerships. Trustee acted as chief executive authority. Duties included negotiation and supervision of disposition of the business, in consultation with US Government as required. Supervised major litigations and settlements, 1996-1999. Government interest disposed of in May 1999.
Appointed Liquidating Trustee by U.S. District Court, No. District of California, effective August 31, 1999. Distribution of approximately $192 million to 1792 beneficiary partners pursuant to settlement of class action. Final distribution of residual amounts completed in December 2009. Administrative cost less than 1%.
Appointed trustee in bankruptcy ( Chapter 11) Feb. 28, 2000. 625 employees; $40 million annual revenue. Assigned to seek reorganization plan after 20 months of unsuccessful Chapter 11 proceedings without trustee. Management of casino, turn-around of loss to profitability, negotiation of reorganization plan involving major repairs, cost restructuring, and sale of stock to investors. Litigation with City of San Jose re validity of ordinance with new restrictions. These would have effect, in opinion of Trustee and City of San Jose Hearing Officer, of shutting down the casino, thus effecting a municipal “taking” of the sole bankruptcy estate asset. Reorganization Plan and sale of company to investors approved in June, 2006. Closing on March 1, 2007, and Trustee relieved on July 1, 2007. Creditors received 100% of approved debts ($21 million) and buyers received $8 million in cash in the company’s books, and going concern value estimated at $6-8 million net profits annually.
Appointed liquidation trustee in April 2001, closed August 12, 2008. Settlement of dispute over obligations of acquiring company, and distribution of acquisition proceeds in form of acquiring company’s shares.
Negotiator for Governor of California in Compacts with Indian tribes to regulate gambling. Served from Jan. 2003 to Jan. 2004, as one of three negotiators.
166-bed subacute nursing facility with $14 million annual budget. Appointed Chapter 11 trustee, July 23, 2008. Emergency due to lack of funds and State suspension of medical payments on August 1, 2008. Organized loan by management company and potential purchaser with which to operate through August until State funds restored. Sale of facility and business, December 15, 2008. Remaining collections and administrative chores completed in 2010.