Debtor’s Counsel Vignette: COVID Stories

When the COVID 19 pandemic hit in early 2020, most chapter 11 attorneys had no real solutions for their clients except to liquidate their companies. The Fox Law Corporation had solutions for its clients to stay in business. At Steven Fox’s suggestion, one client in a chapter 11, a 14 acre metal recycling facility, immediately added trash hauling work to its business clients. The business survived and thrived. Another client that did residential plumbing work had a real problem: people would not let plumbers into their homes. Fox suggested that the company switch to commercial plumbing to utilize the septic licenses. Within a couple of months, the company was referring out its residential plumbing work (in exchange to referrals back). It was heavily into septic work with an existing pump truck and a second truck it purchased; and, its gross and net revenues during the pandemic were higher than they were before. Fox Law guided a third company, doing single family construction with a side division of residential painting work, into commercial painting work and national chain stores. This company’s gross and net revenues doubled and tripled despite COVID 19. Probably the hardest reorganization for Fox Law was a wholesale bakery manufacturer that lost most of its customers when the COVID 19 pandemic hit. With hotels and restaurants shut down, the bakery manufacturer lost major accounts. The national food distributors stopped most of their orders. Plus, the Debtor lost its lease during the pandemic and had to move to a new location. There were difficult months. Fox Law worked with the owners to help them obtain new accounts and customers, to reduce expenses, and to move a facility during a pandemic. The bankruptcy court confirmed its plan of reorganization.