Debtor Representation



David has extensive experience representing distressed companies in both out of court restructurings and chapter 11 cases.


Home Organizers, Inc.:

In response to the aggressive maneuvers by the company’s senior secured lender that attempted to replace the company’s founder with a receiver, David formulated a strategy that included filing an emergency chapter 11 that restored company management, which permitted the negotiation of a consensual resolution that provided the founder with the time and resources that he needed to refinance the company’s obligations.

Pollo West:

Pollo was among the best franchisees in the popular El Pollo Loco chain, but over expansion triggered covenant defaults in its loan documents. After the secured creditor sought the appointment of a receiver, David used the chapter 11 process to negotiate a consensual plan with the secured creditor, unsecured creditors, franchisor and landlord to successfully reorganize the business.


The company operated stylish, upscale fitness clubs in four metropolitan areas in the United States. As a result of aggressive expansion, the company owed over $65 million in debt, but operating revenues were insufficient to service the debt. David assisted the company in negotiating a restructuring that required a substantial amount of the debt to be converted into equity, and then used the chapter 11 process to consummate the restructuring.

Edenhurst Gallery:

Edenhurst was a prestigious art gallery specializing in nineteenth and early twentieth century paintings. Facing a cash flow problem, the company borrowed substantial amounts from a pawnbroker. Facing foreclosure of its inventory, David filed an emergency chapter 11 case that stopped the foreclosure. After litigating novel issues regarding pawnbroker indebtedness, David was able to confirm a chapter 11 plan that permitted Edenhurst to continue operations.

2B Or Not 2B:

Through a LLC, two individuals owned an office building in Westwood, California. The individuals began to have serious disputes and could not agree on any decision regarding the property. While the property had substantial equity, the inability to operate the property resulted in a default to the secured lender and risk of a foreclosure. At the instruction of one of the members, David filed a chapter 11 for the LLC and over the objection of the other member was able to negotiate and consummate the sale of the property, thereby satisfying all claims and permitting a distribution of proceeds to the members.


The company was the largest full service distributor of general merchandise products and specialty items in the United States. After suffering several financial reversals, the company defaulted on approximately $96 million in debt. In cooperation with the secured lender, the company filed a chapter 11 in order to consummate a sale of substantially all of the company’s assets. David managed the sale process, which resulted in the consummation of the sale of the company’s assets for approximately $72 million.


LaundryMart was the developer and operator of approximately 26 combined-use retail micro-malls located throughout Los Angeles County. A sudden and dramatic increase in natural gas prices left the company with insufficient cash flow to service its leases and other obligations. During the chapter 11 case, David negotiated and consummated a sale of the company’s assets.

Carolco Pictures:

The company was an independent producer of motion pictures that produced some of the highest revenue grossing motion pictures ever made, including Terminator 2: Judgment Day, Total Recall, Cliffhanger, Basic Instinct, and Rambo: First Blood Part II. After an unsuccessful out of court restructuring, the company elected to liquidate its assets in a chapter 11 case. David assisted in consummating the sale of the existing film library to Canal Plus, and then assisted in consummating the sale of the company’s prequel, sequel and remake rights, including the right to produce Terminator 3. The bankruptcy case was very successful and resulted in satisfaction of substantially all of the company’s debt.