MAJOR REPRESENTATIONS BY INDUSTRY

Airlines

In re Mesa Air Group, Inc.

(Bankr. S.D.N.Y.) Representation of the official committee of unsecured creditors of Mesa Air Group in its Chapter 11 bankruptcy, one of the largest national cases measured by debt. MoFo won the "Corporate Turnaround Deal of the Year" award at the 2011 Turnaround Atlas Awards for its work on this case.

Distressed Real Estate

In re South Edge, LLC

(Bankr. D. Nev.) Representation of JPMorgan Chase Bank, N.A. as administrative agent for a syndicate of lenders, which provided approximately $585 million in secured financing for a planned multibillion-dollar real estate project in Las Vegas. MoFo filed and successfully defended the involuntary Chapter 11 bankruptcy petition, alongside a motion to appoint a Chapter 11 trustee, against South Edge, LLC, the developer of the 2,000- acre master-planned community, and then negotiated, prepared, confirmed, and implemented a reorganization plan, together with a majority of the homebuilder equityholders, which provided the lending syndicate with a par-plus recovery of $335 million.

In re Fairfield Residential LLC

(Bankr. D. Del.) Representation of the official committee of unsecured creditors of Fairfield Residential LLC in its Chapter 11 bankruptcy. MoFo continues to represent the entity that received all of the debtor's post-bankruptcy assets overseeing the management and divestiture of more than 100 multifamily projects nationwide.

In re River Road Hotel Partners LLC and In re RadLAX Gateway Hotel LLC

(Bankr. N.D. Ill./7th Cir.) Representation of Amalgamated Bank (as trustee for itself) and U.S. Bank National Association as secured lenders in two separate but related Chapter 11 bankruptcy proceedings, where the debtors operate the Radisson Hotel at the Los Angeles International Airport and the InterContinental Hotel Chicago O'Hare. MoFo successfully defended the debtors' unusual direct appeal to the Seventh Circuit Court of Appeals of the Bankruptcy Court's ruling that the debtors could not confirm a plan of reorganization selling the hotels free and clear of liens but denying the secured creditor clients the right to credit bid at such a sale. The Seventh Circuit's ruling created a split between the Seventh Circuit and the Third Circuit's Philadelphia Newspapers opinion on the issue.

The day after the Seventh Circuit affirmed the credit bidding decision, the bankruptcy court confirmed the secured creditor client's plan of reorganization in the River Road cases under which ownership of the hotel and related assets was transferred to the creditors' control, thus effectively ending the River Road cases.

The Supreme Court recently granted the RadLAX debtor's petition for writ of certiorari to review the Seventh Circuit's decision.

In re Innkeepers USA Trust

(Bankr. S.D.N.Y.) Representation of the official committee of unsecured creditors in the Chapter 11 bankruptcy of Innkeepers USA Trust. This is one of the largest national cases, by debt size, filed in 2010 with $1.29 billion in prepetition secured debt, which culminated with the sale of 64 of Innkeepers' hotels to affiliates of Cerberus Capital Management for $1.02 billion. Unsecured creditors are estimated to recover approximately 80–90% on their allowed claims, with many to be paid in full.

In re Extended Stay Inc.

(Bankr. S.D.N.Y.) Representation of a creditor in Extended Stay Inc.'s Chapter 11 bankruptcy. Extended Stay is the largest bankruptcy filing in the history of the hospitality industry with more than $7 billion in debt. Our client is the largest creditor, with an exposure in excess of $1 billion dollars.

In re General Growth Properties, Inc.

(Bankr. D. Del.) Representation of Eurohypo AG's New York Branch and a group of lenders that has more than $2.6 billion of exposure to GGP. Soon after confirmation of GGP's reorganization plan, MoFo worked with the agent to defeat GGP's objection to the agent's claim for default interest on the loan, and obtained an order from the bankruptcy court awarding the agent, for the benefit of the lenders, over $89 million in contract-rate default interest. MoFo is currently defending the agent in GGP's appeal of the bankruptcy court's order.

Energy and natural resources

In re Caribbean Petroleum Corp.

(Bankr. D. Del.) Representation of the official committee of unsecured creditors in the Chapter 11 case of Caribbean Petroleum Corp., one of the primary importers and distributors of petroleum products in Puerto Rico. The case involves key issues relating to environmental liabilities in bankruptcy, following catastrophic explosions at the debtors' petroleum facilities.

Toshiba Corporation

Representation of Toshiba in restructurings of power and infrastructure project interests, including debt and equity investments in major projects in the United States.

Financial services

In re MF Global Holdings Ltd

(Bankr. S.D.N.Y.) Former FBI Director Louis J. Freeh, who was appointed as Chapter 11 trustee for MF Global Holdings, Ltd. and MF Global Finance USA Inc, selected MoFo as his counsel. MF Global was the largest bankruptcy filing of 2011 and the eighth-largest in U.S. history.

In re Landsbanki Islands hf

(Bankr. S.D.N.Y.) Representation of Landsbanki Islands hf, one of the three largest banks in Iceland, in its Chapter 15 cases and assistance with its multijurisdictional restructuring efforts in connection with Icelandic reorganization proceedings. We are advising the bank on the negotiations over the compensation instruments to be provided to the bank for the nationalization of assets, the liquidation of its remaining assets, and the global resolution of cross-border claims and litigation. MoFo was instrumental in rewriting Iceland's insolvency law and helping avoid a massive economic crisis in Iceland. In its October 2011 issue, the American Lawyer referred to our work on the case as Morrison & Foerster's Bankruptcy practice's "finest hour."

In re Lehman Brothers Holding, Inc.

(Bankr. S.D.N.Y.) Representation of Lehman Brothers Japan (LBJ) as a creditor in the U.S. bankruptcy court restructuring of Lehman Brothers Holdings and the Lehman Brothers proceedings administered under the Securities Investor Protection Act. LBJ asserted claims against the U.S. estates in excess of $1 billion for purposes of funding distributions to creditors in its own Japanese administrative proceedings.

Madoff Proceedings

Representation of the liquidators of several hedge funds that invested directly or indirectly in Bernard L. Madoff Investment Securities, LLC in proceedings in the United States, Cayman, British Virgin Islands, and Europe.

"Asian Madoff" Creditor Representations

Representation of Bank SinoPac, a major Taiwanese bank, and ad hoc creditors' committees in the billion-dollar frauds committed by Danny Pang, the "Asian Madoff," and his various affiliates.

Insurance

In re Ambac Financial Group, Inc.

(Bankr. S.D.N.Y.) Representation of the official committee of unsecured creditors of Ambac Financial Group, Inc. in its $1.69 billion Chapter 11 bankruptcy, the fifth largest financial services bankruptcy to date. MoFo actively negotiated with the debtor and the Office of the Insurance Commissioner for the State of Wisconsin, among other parties, to resolve complex issues and reach an agreement that lead to the filing of a consensual plan of reorganization currently scheduled for confirmation in early 2012. MoFo has also engaged with the debtor and the Internal Revenue Service regarding the potential settlement of a $700 million tax dispute.

In re FGIC Corp.

(Bankr. S.D.N.Y.) Representation of the official committee of unsecured creditors of FGIC Corporation in its Chapter 11 bankruptcy. FGIC had guaranteed more than $300 billion of municipal and structured finance debt before the credit crisis.

In re GTE Reinsurance Company

(Providence Sup. Ct.) Representation of the insurance division of the State of Rhode Island's Department of Business Regulation in the first-ever proposed discharge and liquidation of the obligations of a solvent insurer in the U.S. MoFo's appellate litigation team successfully defended the constitutionality of a unique Rhode Island statute that allows a solvent insurance company that has entered into an arrangement to bring finality to its obligation with creditors.

Partner Gary Lee was honored as "Person of the Year" by the Association of Insurance and Reinsurance Run-Off Companies in 2011 for his work on this matter.

Municipalities

In re Los Osos Community Services District

(Bankr. C.D. Cal.) Representation of two of the largest general unsecured creditors in Los Osos Community Services District's Chapter 9 bankruptcy, including on a variety of plan confirmation issues involving California laws and federal bankruptcy law.

Sports, media and entertainment

In re Los Angeles Dodgers LLC

(Bankr. D. Del.) Representation of the official committee of unsecured creditors in the Los Angeles Dodgers Chapter 11 bankruptcy proceeding. This engagement presents unique challenges given differing initial views between the debtors and Major League Baseball (MLB) regarding how the case should proceed. MLB sought a quick sale of the team, whereas the debtors sought to promptly sell their media rights to create liquidity. Ultimately, the debtors and MLB agreed on a process to sell the team that would permit the debtors to market their media rights as a means of maximizing estate value during the team sale process. The debtors and Fox Sports are now locked in a legal battle to decide whether the debtors can market their media rights in light of exclusive negotiation rights contained in their current agreement with Fox.

In re TMP Directional Marketing LLC

(Bankr. D. Del.) Representation of the ad hoc committee of unsecured creditors of TMP Directional Marketing in its liquidating prepackaged Chapter 11 bankruptcy. MoFo coordinated and facilitated a unique and novel solution: a prepackaged bankruptcy secured by the vote of trade creditors. With over 99% in amount and 95% in number voting for the plan, the voting creditors overwhelmingly supported the plan. The committee's members have $112 million in unsecured claims against the advertising agency, comprising approximately 85% of the company's outstanding debt. TMP is set to confirm its "trade debt prepack" within two months of filing for Chapter 11 protection, with returns to the trade creditors soon thereafter.

Technology

In re think3 Inc.

(Bankr. W.D. Tex.) Representation of Versata FZ-LLC, as exclusive licensee of key computer-aided design software developed by think3 Inc., in a dispute with an Italian bankruptcy trustee. After Italian creditors of think3 forced an Italian branch of the company into bankruptcy in Italy, the bankruptcy trustee appointed to oversee the case attempted to seize control of think3 worldwide and to terminate Versata's license. think3 subsequently filed for bankruptcy in the U.S. under Chapter 11 of the U.S. Bankruptcy Code in Texas in response to the trustee's efforts. A full trial was conducted in the U.S. Bankruptcy Court over the license and other issues, resulting in a final ruling that Versata was the exclusive owner of think3's IP. The court also denied the Italian trustee's request for recognition of the Italian bankruptcy proceedings under Chapter 15.

In re Qimonda AG

(Bankr. E.D. Va.) Lead U.S. counsel to Qimonda AG, a semiconductor company that is in insolvency proceedings in Germany which have been recognized in the U.S. under Chapter 15 of the U.S. Bankruptcy Code. MoFo successfully negotiated a settlement between Qimonda AG and its U.S. subsidiaries for the ownsership of certain assets and more than $1 billion in intercompany claims.

In re DBSD North America Inc.

(Bankr. S.D.N.Y.) Representation of ICO Global in the restructuring and Chapter 11 bankruptcy of its subsidiary DBSD North America and in the $1.5 billion sale of DBSD to DISH Network.

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Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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