Office: (415) 444-6684
Office: (415) 444-6684
Chapter 7/Chapter 11 Bankruptcy
John Hansen business bankruptcy practice is concentrated on representing clients in the reorganization of financially distressed businesses. Mr. Hansen has represented many clients in chapter 11 reorganization cases and in non-consumer chapter 7 liquidation cases. His clients have included debtors, creditors, committees, landlords, labor unions and retirees. In addition, he has represented debtors in over sixty chapter 11 cases with confirmed plans of reorganization.
Representative clients include:
Federal Deposit Insurance Corporation (FDIC) in failed bank holding company cases
A committee of retired executives in the Pacific Gas & Electric Company (PG&E) chapter 11 case
Three local labor unions as debtors in successful chapter 11 reorganization cases
A committee of grower/members in the Tri-Valley Growers chapter 11 case
Shopping center owners in retail chain chapter 11 reorganization cases
Labor Unions and Employees
In the last three decades numerous municipalities filed bankruptcy cases under chapter 9 of Bankruptcy Code, including Orange County, California, Detroit, Michigan, and Stockton and San Bernardino, California. Such cases often involved a contest between bondholders and employees over the limited resources available. John Hansen served as counsel for three labor organizations representing employees of the City of Stockton and was counsel for the Transportation Corridor Agencies (TCA) in the Orange County municipal bankruptcy, which was at the time the largest municipal bankruptcy case in U.S. history. The TCA was one of the seven members of the Pool Participants’ Committee that negotiated the plan of adjustment with Orange County, and the TCA recovered 95% of its $350 million investment. In the City of Stockton case, Mr. Hansen was successful in protecting the unions’ negotiated contracts and their members’ vested interests in pensions in the city's plan of adjustment confirmed by the court. Mr. Hansen also represented a skilled nursing facility that operated on the campus of the Los Medanos Community Hospital during the latter's municipal bankruptcy.
Chapter 11 Bankruptcy
A chapter 11 bankruptcy case is often an “umbrella” for litigation within the case between and among various parties, which are called contested matters and adversary proceedings. John Hansen has successfully represented both plaintiffs and defendants in both contested matters and adversary proceedings in bankruptcy courts involving actions for preferences, fraudulent transfers and objections to creditors’ claims; as well as appeals from bankruptcy court decisions. In addition, he represented the Federal Deposit Insurance Corporation (FDIC) in various types of litigation in chapter 11 bankruptcy cases. In one case, on behalf of the FDIC, he obtained the appointment of a receiver and relief from the automatic bankruptcy stay to enforce the FDIC’s security interest in a Northern California hotel. Additionally, in ACI Sunbow, a secured creditor Mr. Hansen represented obtained an order dismissing a chapter 11 case as having been filed in bad faith in a published opinion.
Chapter 9/Chapter 11 Bankruptcy
John Hansen has represented local labor unions both in connection with bankruptcy law and also enforcement of the Federal Service Labor-Management Relations Statute. John represented three local labor unions as debtors in successful chapter 11 bankruptcy reorganization cases, which is a unique accomplishment. In one of the cases, an employer appealed the confirmation of the plan all the way to the United States Court of Appeals for the Ninth Circuit, which published an opinion holding that members of labor unions cannot be involuntarily assessed dues to pay for a local union’s debts. In re General Teamsters Local 890, 265 F.3d 869 (9th Cir. 2001).
John also has represented labor unions when an employer is in a chapter 11 bankruptcy case in order to protect the rights of union members under collective bargaining agreements. In the municipal bankruptcy of Stockton, California, John Represented three municipal labor organizations and was instrumental in assuring that the plan of adjustment protected the pensions of employees negotiated through collective bargaining agreements.
John also served as a consultant to AFGE Local 2110, assisting the local union in grievances, arbitrations and unfair labor practice charges filed with the Federal Labor Relations Authority.