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
Chapter 9/Chapter 11 Bankruptcy
A unique area of practice is representing local labor unions both as debtors and creditors in chapter 11 and chapter 9 bankruptcy cases. John Hansen has successfully taken three local labor unions as debtors through chapter 11 bankruptcy cases, and represented labor unions as creditors or parties to collective bargaining agreements in chapter 11 corporate reorganization cases. He represented three employee labor organizations in the City of Stockton municipal bankruptcy. Stockton confirmed a plan of adjustment that, as the unions strongly desired, left employee and retiree pensions unimpaired. He won a landmark decision in the United States Court of Appeals, General Teamsters Local 890, that established a rule that the members of a local labor union in bankruptcy cannot be assessed to pay the claims of creditors of their union and that international unions are not liable for local union debts.
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.
Labor Unions and Employees
In the last decade several cities filed bankruptcy cases under chapter 9 of Bankruptcy Code, including Detroit, Stocton and San Bernardino. The Covid-19 pandemic is likely to see a new wave of municipal bankruptcies. 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, a municipal bankruptcy counsel for the Transportation Corridor Agencies, a major creditor in the Orange County, California, municipal bankruptcy, which was at the time the largest municipal bankruptcy case in U.S. history. His client was one of the seven members of the Pool Participants’ Committee that negotiated the plan of adjustment with Orange County. His clients recovered 95% of their $350 million investment. 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 case.debtor. He 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. John Hansen previously served as counsel for the Transportation Corridor Agencies, a major creditor in the Orange County municipal bankruptcy, which was at the time the largest municipal bankruptcy case in U.S. history. His client was one of the seven members of the Pool Participants’ Committee that negotiated the plan of adjustment with Orange County. His clients recovered 95% of their $350 million investment. 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 case.