Representation: Creditors’ Committee
Bankruptcy – Northern District of West Virginia
Situation: The debtor was an oil and gas well syndicator with hundreds of interests throughout West Virginia. Monies due creditors totaled about $1.5 million.
Action: The committee of unsecured creditors hired Bernstein and Bernstein, P.C. based on the firm’s reputation for strong, aggressive and successful representation of creditors. The creditors’ committee, suspecting Ferrell Prior (the debtor) of mischief and fraud, requested Bernstein and Bernstein, P.C. attorneys investigate their concerns.
After a few months and many hours of depositions and investigations, counsel enabled the committee to present sufficient evidence of the wrongdoing to convince the bankruptcy judge to appoint a trustee to take over the assets, liquidate them and distribute them to creditors.
The trustee later liquidated sufficient assets to pay creditors more than 95% of what was owed to them.