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Paul M. Nussbaum
Partner, Chair, Reorganizations & Bankruptcy
7 Saint Paul Street
Baltimore, MD 21202-1636
Phone: 410.347.8794
Fax: 410.223.4394
pnussbaum@wtplaw.com
Awards

Mr. Nussbaum is the Chair of the firm's Business Reorganizations and Bankruptcy Litigation group, which handles business reorganizations, loan restructurings, Chapter 11 bankruptcies, and related commercial and bankruptcy litigation.  He represents debtors, trustees, plan trusts and administrators, and creditors' committees in numerous bankruptcy cases and related federal and state court litigation. He focuses his practice on representing debtors in Chapter 11 reorganizations, and estate representatives and trustees in connection with the investigation and pursuit of business fraud and professional liability claims, including director and officer liability and auditing/accounting claims.

Representative Cases as Counsel in Chapter 11 Reorganizations

  • Debtors' Counsel, In re LSP Limited Partnership, et al., owner and operator of an electric generation facility in Batesville, Mississippi, in Chapter 11 reorganization
  • Debtors' Counsel, In re Dan River Holdings, LLC, manufacturer of cotton and cotton-blend fabrics, in Chapter 11 reorganization
  • Debtors' Counsel, In re Captain's Cove Group, LLC, developer of a 2,000 acre waterfront community, in Chapter 11 reorganization
  • Debtors'  Counsel, In re National Energy & Gas Transmissions, Inc. (f/k/a PG&E National Energy Group, Inc.), a multi billion-dollar energy company that focused on power generation and natural gas transmission in North America, in Chapter 11 reorganization
  • Debtors' Counsel, In re Sunterra Corporation, then the world's largest publicly traded timeshare resort company with over $1 billion in assets, in Chapter 11 reorganization
  • Debtors' Counsel, In re Baltimore Emergency Services II LLC, national physician practice management company with over 250 subsidiaries, in Chapter 11 reorganization
  • Debtors' Counsel, In re Frank's Nursery & Crafts, Inc., retailer, in Chapter 11 reorganization
  • Debtors' Counsel, In re USInternetworking, publicly traded internet company, in Chapter 11 reorganization
  • Debtors' Counsel, In re Railworks Corporation, publicly traded construction company, in Chapter 11 reorganization
  • Debtors' Counsel, In re Porter-Hayden Corporation, mass tort asbestos defendant, in Chapter 11 reorganization
  • Debtors' Counsel, In re Pocket Communications, cellular phone start-up company, in Chapter 11 reorganization
  • Debtors' Counsel, In re Kiddie Academy International, Inc., publicly traded franchisor, in Chapter 11 reorganization
  • Debtors' Counsel, In re Georgetown Leather Design, specialty retailer of leather goods, in Chapter 11 reorganization
  • Debtors' Counsel, In re Combined Properties, Inc., owner of retail and residential properties, in Chapter 11 reorganization
  • Debtors' Counsel, In re Carpet Fair, a Baltimore-based chain of 25 carpet stores, in Chapter 11 reorganization
  • Debtors' Counsel, In re Minibar North America, Inc., a hospitality supply company, in Chapter 11 reorganization

Representative Cases as Counsel for Creditors' Committee in Chapter 11 Reorganizations

  • Creditors' Committee Counsel, In re Howrey LLP, AmLaw 100 law firm, in Chapter 11 reorganization
  • Creditors' Committee Counsel, Lloyd E. Mitchell, Inc., mechanical contracting firm, in Chapter 11 reorganization
  • Creditors' Committee Counsel for Imperial Home Décor Group, Inc., et al., in Chapter 11 reorganization
  • Creditors' Committee Counsel, Criimi Mae Management, Inc., real estate investment trust, in Chapter 11 reorganization
  • Creditors' Committee Counsel, In re Cherrydale Farms, candy company with over $80 million in annual sales in Chapter 11 reorganization
  • Creditors' Committee Counsel, Fas Mart Convenience Stores, Inc., chain of convenience stores, in Chapter 11 reorganization
  • Creditors' Committee Counsel, Biosys, Inc., manufacturer and seller, in Chapter 11 reorganization
  • Creditors' Committee Counsel, Parks Sausage, a Maryland-based sausage manufacturer, in Chapter 11 reorganization
  • Creditors' Committee Counsel, Royal Furniture Company, Inc., a furniture retailer, in Chapter 11 reorganization
  • Creditors' Committee Counsel, Sunny's Great Outdoors, Inc., a chain of surplus stores, in Chapter 11 reorganization
  • Creditors' Committee Counsel, DB Companies, Inc., a chain of convenience stores in the Northeast, in Chapter 11 reorganization
  • Creditors' Committee Counsel, Valu Food, Inc., a grocery store chain, in Chapter 11 reorganization

Representative Cases in Bankruptcy Litigation, Professional Liability, Corporate Governance and Commercial Litigation

  • In re Just for Feet, Inc.  Special Litigation Counsel to Chapter 7 Trustee, pursuing hundreds of avoidance actions, D&O and accountant malpractice action and lender liability claims against secured creditors
  • CNB International, Inc. et al. v. Kelleher et al. (Bankr. W.D.N.Y.) Represented the Litigation Trustee for CNB International, Inc. in a fraudulent conveyance lawsuit against domestic and foreign entities arising from a $70 million leverage buyout transaction
  • Imperial Home Décor Group, Inc. et al. (Bankr. Del.)  Following representation of the Creditors' Committee during the chapter 11 reorganization of Imperial Home Décor and several affiliates, represented the IHDG Litigation Trust in an action to avoid as fraudulent conveyances the transfers made to former shareholders by the debtor in a complex leveraged buyout transaction and litigated numerous preference actions
  • DDJ Capital Management, LLC, et al. v. Rhone Group, LLC, et al. (N.Y. Sup. Ct.) Counsel to multiple hedge fund lenders in prosecuting fraud claims against equity sponsors and directors and officers of a bankrupt automotive parts reconditioning company
  • In re BearingPoint, Inc. (Bankr. S.D.N.Y; Circuit Court for Fairfax County, VA) Counsel to Plan Trustee of the BearingPoint Liquidating Trust in an investigation and pursuit of claims in excess of $1.8 billion against a former officer and the directors for violations of corporate governance principles, including breach of fiduciary duty
  • In re Saint Vincents Catholic Medical Centers of New York (Bankr. S.D.N.Y.) Counsel to Plan Trustee for the SVCMC Litigation Trust, which was established by the confirmed plan of reorganization in the bankruptcy of Saint Vincents Catholic Medical Centers, et al. in the United States Bankruptcy Court for the Southern District of New York.  Investigated potential officer liability and professional malpractice claims, and initiated suits against former officers, financial advisors and professionals as well as against former counsel
  • Counsel to the Creditors' Committee, Trustee and Plan Administrator in the liquidation of HealthEssentials Solutions, Inc., a national healthcare provider, and its affiliates in Kentucky, and litigation involving Medicare false claims, accounting malpractice, director and officer liability, and a criminal and civil investigation by the United States arising from whistleblower claims in Kentucky and New York
  • In re Shapes/Arch, et al. (D.N.J.) Counsel to Trustee of Shapes Liquidation Trust in claims brought by Trust against managers and officers of a limited liability company and four subsidiary limited liability companies for breach of fiduciary duty and corporate waste relating to a restructuring and sales process
  • In re Converse, Inc. (Bankr. Del.) Special Counsel to CVEO Creditors Trust established by Plan of Reorganization of Converse, Inc. in investigation and resolution of accounting and insider liability claims as well as prosecution of preference and fraudulent transfer claims
  • Trustee's Counsel, In re LifeOne, Inc., life insurance company, in investigation of fraudulent transfer claims and liquidation of assets
  • Special Litigation Counsel to Litigation Trust in a professional liability action against an accounting firm, arising from the liquidation of Tower Air, Inc., an international airline, in New York and Delaware
  • In re Storehouse, Inc., Rowe Furniture, Inc., The Rowe Companies. Special Litigation Counsel to Chapter 7 Trustee of Rowe Furniture, Inc. and the Chief Liquidation Officer of Storehouse, Inc. and the Liquidating Trustee of The Rowe Companies Liquidating Trust, completed an extensive investigation and pursued claims against the former directors and certain officers of The Rowe Companies and its two subsidiaries for violations of corporate governance in Virginia
  • Counsel to a Litigation Trustee in liquidation of Air Cargo, Inc., an airline industry service company, including professional malpractice, director and officer liability, and preference investigations and litigation in Delaware
  • Counsel to Spheris Holding III, Inc., in analysis, investigation and litigation of corporate governance issues relating to In re Spheris, Inc., et al., in Delaware

Alternative Dispute Resolution

  • Participated in numerous mediations and mandatory arbitrations involving business litigation and professional liability matters

Pre-Bankruptcy Planning

  • Advice to businesses and their boards on options for maximizing the value of their assets and improving their operations with pre-bankruptcy planning strategies

Recognitions

AV Peer Review Rated: Martindale-Hubbell

Named "Baltimore 2015 Litigation - Bankruptcy Lawyer of the Year" by Best Lawyers

Best Lawyers: Named in Best Lawyers in America, 2001 - present; named "Baltimore 2011 Bankruptcy and Creditor-Debtor Rights Lawyer of the Year"

Benchmark:  Listed as "The Best Bankruptcy Lawyer in Maryland" in Benchmark Litigation 2009: The Definitive Guide to America's Leading Litigation Firms and Attorneys; Listed as a "Local Litigation Star", 2010 - present; Listed as "Highly Recommended" in Benchmark Plaintiffs, 2012 - present

Chambers:  Listed in Chambers USA: America's Leading Lawyers for Business, 2010 - present

Legal 500: Ranked among the leading bankruptcy lawyers in the Northeast region of the United States by Legal 500 (2009)

Super Lawyers:  Listed 2007 to present; Named among "Top 10 Maryland Lawyers," Maryland Super Lawyers, 2008; Named among "Top 50 Maryland Lawyers," Maryland Super Lawyers, 2007, 2009 & 2010

Recognized in "Baltimore's Top Lawyers," Baltimore Magazine, 2003

Publications & Presentations

Co-Author: "Prevent Disqualification and Disgorgement: Disclosure is Key," ABI Journal (January 2015)

Presenter: "Ethical Issues in Business and Consumer Bankruptcy Cases," Bankruptcy Bar Association's 18th Annual Spring Break Weekend (May 2014)

Presenter: "Ponzi Scheme Bankruptcies," Mid-Atlantic Institute on Bankruptcy & Reorganization Practice (September 2013)

Co-Author: "Considerations for Existing and Potential Directors and Officers of Financially Distressed Companies," Corporate Board Member Magazine (March 2012)

Presenter: "Exit Strategies in a Business Chapter 11," Bankruptcy Bar for the District of Maryland (May 2012)

Presenter: "Know the Mine Field: Risks for Holders of Distressed Debt," International Quality and Productivity Center's Global Distressed Debt West Coast Investor Forum, California (March 2009)

Presenter: "Investing in Distressed Securities in Troubled Economic Times," International Quality and Productivity Center's Global Distressed Debt Investor Forum, New York (September 2008)

Presenter: "Legal and Economic Perspective: Investing in Distressed Securities During Troubled Economic Times," International Quality and Productivity Center's Global Distressed Debt West Coast Investor Forum, California (March 2008)

Presenter: "Maximizing Your Return: When to Buy and Sell Distressed Debt," International Quality and Productivity Center's Global Distressed Debt Investor Forum, New York (September 2007)

Former Member, Author and Lecturer: Maryland Institute for Continuing Education of Lawyers

Author and Lecturer: "Basic Bankruptcy Litigation in Maryland," National Business Institute (May 2000)

Author and Lecturer: "Real Estate Foreclosure in Maryland," Lorman Education Services (1991)

Author and Lecturer: "Workouts and Bankruptcy in Maryland," Professional Education Systems, Inc. (1991)

Memberships & Activities

Life Fellow:  American Bar Foundation

Member:  Equal Justice Council of Maryland Legal Aid

Member: American Bar Association 

Member: Board of Directors, American Bankruptcy Institute 

Member: Bankruptcy Bar Association, District of Maryland

Law Clerk, Honorable Prudence B. Abram, United States Bankruptcy Court, Southern District New York 1984-1985

Education

  • California Western School of Law (J.D. 1984) cum laude
  • Fairleigh Dickinson University (B.A. 1980)