Eric D. Schwartz

Partner

Tel: (302) 351-9308
Fax: (302) 498-6208
eschwartz@mnat.com

Prior to his career as an attorney, Mr. Schwartz was an investment banker for several years.  He holds a Master in Business Administration in Finance from New York University and a Bachelor of Science in Business Administration in Finance from Georgetown University.

Mr. Schwartz has over 15 years experience representing debtors and creditors in insolvency cases and out-of-court restructurings.  His substantial experience includes assisting clients with complex operational, corporate governance, financial, real estate, pension, intellectual property, tax, labor, purchase/sale and litigation issues.  He also has extensive experience in the use of state court proceedings as a restructuring or liquidation alternative, including experience with receiverships, assignments for the benefit of creditors, foreclosures and other alternative court proceedings.

Mr. Schwartz’ practice focuses on business restructurings, including representing distressed enterprises, advising fiduciaries and managers for distressed enterprises, distressed acquisitions and transactions, distressed financings, debtor and committee representations, representation of large secured and unsecured creditors and related litigation.  He has appeared in federal and state courts throughout the United States on a range of bankruptcy and related issues. 

Mr. Schwartz represents many international clients in insolvency and other proceedings in the United States.  He is active internationally in the Insolvency/Bankruptcy Practice Group for TerraLex, a worldwide network of business lawyers.  Mr. Schwartz appears before a variety of professional and business audiences on various restructuring and business topics.

Noteworthy

• Featured moderator – ABI’s 2009 Complex Financial Restructuring Program (CFRP) case study held concurrently with ABI’s 17th Annual Southwest Bankruptcy Conference at the Hyatt Regency Lake Tahoe Resort, Incline Village, Nevada (September 10-11, 2009);
• Featured presenter – Annual Terralex Americas Regional Meeting - Focus on Client Service Value Add, Atlanta, Georgia (April 22-24, 2009);
• Featured panelist - Distressed Retail Summit:  Turnarounds, Restructurings, Bankruptcies & Distressed Investing Conference, New York City, (October 15-17, 2008). 

Representative Matters

COMPANIES

• Hancock Fabrics, Inc. – Counsel to publicly-held national retailer of fabrics, notions and home furnishing goods with approximately 400 retail locations.  Lead counsel regarding all real estate matters, including extensive lease issues.  Also, responsible for handling a large tax claim.  First case to address certain procedures with respect to the BAPCPA revisions to nonresidential real property lease provisions of the Bankruptcy Code;
• Rouge Steel – Counsel to Rouge Steel and its affiliates, producers of high quality, flat rolled carbon steel products, with respect to the sale of the company and resolution of claims in bankruptcy.  Responsible for handling the resolution of certain large secured/unsecured claims as well as labor and pension related matters;
• Orion Refining Corporation – Counsel to the company and the plan trustee with respect to the sale of the company in bankruptcy.  Lead counsel responsible for resolution of large secured claim and asset liquidation issues;
• Valley Media, Inc. – Counsel to the company and liquidating trustee with respect to liquidation of the company and its affiliated debtors.  Lead counsel regarding complex contested Uniform Commercial Code consignment matter (See In re Valley Media, 279 B.R. 105 (Bankr. D. Del. 2002)).

COMMITTEES

• Jillian’s Entertainment Corp. – Lead counsel for the Official Committee of Unsecured Creditors and Plan Administrator in this national restaurant chain’s chapter 11 case.  Involved in sale, plan and claims process for both the Committee and Plan Administrator, resulting in a higher than expected return for unsecured creditors. 

OFFICERS AND DIRECTORS

• Riverstone Networks, Inc., Case No. 06-10110 (CSS) (Bankr. D. Del. 2006);
• Xybernaut Corporation, et al., Case No. 05-12801 (RGM) (Bankr. E.D. Va. 2005);
• Williams Communications Group, Inc., et al., Case No. 02-11957 (BRL) (Bankr. S.D.N.Y. 2002).

SIGNIFICANT CREDITOR REPRESENTATIONS

• Global Infrastructure Management, LLC

Lyondell Chemical Company, Inc., et al., Case No. 09-10023 (REG) (Bankr. S.D.N.Y. 2009);

• Barclays Bank (Credit Card Issuer)

Frontier Airlines Holdings, Inc., et al., Case No. 08-11298 (RDD) (Bankr. S.D.N.Y. 2008),

U.S. Airways, Inc., et al., Case No. 04-13819 (SSM) (Bankr. E.D. Va. 2004);

• Delaware Chrysler Dealers

Chrysler, LLC, et al., Case No. 09-50002 (AJG) (Bankr. S.D.N.Y. 2009);

• Wilmington Trust Company

Adelphia Business Solutions, Inc., et al., Case No. 02-11389 (REG) (Bankr. S.D.N.Y. 2002).

SIGNIFICANT ASSIGNEE FOR BENEFIT OF CREDITOR REPRESENTATIONS

• Linux Networks, Inc. – In re: Linux Networks, Inc., Assignor, v. Development Specialists, Inc., Assignee, Del. Ch. Ct., C.A. No. 3611-VCP;
• Popular Club – In re: Popular Club Acquisition, LLC, Assignor, v. Traxi Advisors, LLC, Assignee. Del. Ch. Ct., C.A. No. 4615-VCP.

LITIGATION

• Juniper Bank/Barclays Bank – Lead counsel for Juniper Bank in connection with the litigation commenced by Bank of America against US Airways Corp., Inc. (Bank of America, N.A (USA) v. US Airways, Inc., et al., and Juniper Bank, Del. Ch. Ct., C.A. No. 1713-N).  

News

• Eric Schwartz Receives 2009 TerraLex Distinguished Service Award
  Eric Schwartz is the recipient of the 2009 TerraLex Distinguished Service Award.
• Eric Schwartz Moderates Global Navigation Through the Uncertainties of Insolvency and Restructuring at TerraLex Annual General Meeting – Hong Kong
  Eric Schwartz served as program moderator for the Global Navigation Through the Uncertainties of Insolvency and Restructuring presentation during the weeklong TerraLex Annual General Meeting in Hong Kong.
• Morris Nichols Business Reorganization and Restructuring Group Wins The M&A Advisor U.S. Middle-Market Financing Award
  The M&A Advisor has named Morris Nichols’ Business Reorganization and Restructuring Group the winner of its U.S. Middle-Market Financing Award in the Retail Manufacturing/Distribution & Good/Services sector deal category for its representation of Hancock Fabrics, Inc., in its successful Chapter 11 reorganization.
• Morris Nichols Represents RCI Acquisition LLC in Successful Bid to Regain Control of Ritz Camera Centers
  Derek Abbott successfully concluded a marathon 24-hour auction on behalf of RCI Acquisition LLC in its bid for the assets of Ritz Camera Centers, Inc., America’s largest specialty camera store chain.
• Morris Nichols Business Reorganization and Restructuring Group Wins Turnaround Atlas Award For Role in Restructuring of Hancock Fabrics, Inc.
  Morris Nichols’ Business Reorganization and Restructuring Group has won a Turnaround Atlas Award for its role in the restructuring of Hancock Fabrics, Inc.
• Morris Nichols Recognized for Role as Debtor's Counsel in Successful Reorganization of Big 10 Tire Stores
  Morris Nichols’ Business Reorganization and Restructuring Group was recognized for its role as debtor’s counsel to Big 10 Tire Stores.