Pittsburgh Press Club
Representation: Creditors’ Committee
Bankruptcy – Western District of Pennsylvania
Situation: The Pittsburgh Press Club committee of unsecured creditors hired Joseph J. Bernstein and Bernstein and Bernstein, P.C. on the basis of their extensive bankruptcy experience, and specifically Joseph Bernstein’s experience as a Chapter 11 trustee operating restaurant properties. The first press club in America sought Chapter 11 protection as a result of escalating costs and membership losses. It elected to relocate to a new facility with more favorable lease terms.
Action: When the club’s former landlord tried to interfere with the move by liening the club’s equipment, furniture and artwork, Bernstein and Bernstein, P.C., on behalf of the committee, fought the attempt. The committee tried to facilitate negotiations between the club and its union in order to reduce the club’s operating expenses.
Considering the possibility that the club might be unable to reorganize, the committee and its counsel did everything possible to protect the interests of unsecured creditors. Because management was not up to the task of reorganizing, the club was ultimately forced to close its doors. However, zealous representation of the committee assured the preservation of the estate’s assets to the maximum degree possible for liquidation by the Chapter 7 trustee.