Armand “Jay” Kornfeld

Partner Portrait of Armand “Jay” Kornfeld
206 521-3860

Jay Kornfeld represents companies in commercial creditor and debtor matters, emphasizing workouts, restructurings, and Chapter 11 reorganizations. Over the years, he has represented clients in diverse industries, including retail, grocery, manufacturing, high-tech, telecom, wood products, biotech, commercial and residential real estate, and commercial fishing. He is AV-rated and is the former Chair of the Seattle-King County Bar Association Creditor-Debtor Section. Chambers USA, an independent directory which researches and assesses law firms and lawyers in America, cited Jay as “an outstanding negotiator,” “a name that instantly springs to mind” and “a … creative problem solver.”

Education

Representative Cases

Representing financially troubled companies in diverse industries, Jay has also developed an expertise in the commercial fishing industry, with involvement in virtually every significant commercial fishing and seafood processing case filed in the Seattle area in the last 15 years.

Brown & Cole Stores LLC

Brown & Cole initially operated 30 grocery stores in NW and Central Washington, has approximately 1,200 mostly union employees, and generates annual sales of almost $300 million. At the time of filing its Chapter 11 case, Brown & Cole’s secured debt exceeded $100 million. After restructuring its operations during the Chapter 11, Brown & Cole confirmed an operating Plan of Reorganization in December 2007, successfully restructuring its capital structure and pension obligations to facilitate its continued operation.

Residential Developers/Builders

Since early 2008, Jay has represented more than 15 large residential developers/builders in addressing the severe downturn in residential real estate. Cumulatively, these clients owe approximately $750 Million in secured debt to lenders and own real estate throughout Washington, Idaho, and Oregon.

Larry’s Markets, Inc.

Larry’s Markets filed a Chapter 11 case culminating in a sale of the business and stores, after an auction process, to several buyers. Larry’s initially operated 6 grocery stores in the Seattle area, employed approximately 500 mostly union employees, and generated annual sales of approximately $100 million.

Little Boat North, Inc./Redmond 74, Inc.

Little Boat and Redmond 74 filed jointly administered Chapter 11 bankruptcies. The Debtors are affiliated real property homebuilders. One was formed to develop and construct a 28-acre single family project in Gig Harbor, Washington. The other was formed to develop and construct 131 flats and townhouses on a 7.66 acre development in Redmond, Washington. The companies cumulatively owed secured lenders approximately $30 million. The Chapter 11 cases centered on litigation with a subordinate lender and restructuring of the senior and subordinate debt. After significant litigation with the subordinated lender early in the Chapter 11, the parties reached a mediated settlement. The Court confirmed the Plan of Reorganization in late 2008 which effectively restructured all of the companies’ debt and provided the financing to complete the projects.

Ace Tank Unsecured Creditors Committee

BSK represented the Unsecured Creditors Committee in Ace Tank’s Chapter 11, a long standing company that manufactured, installed, and serviced underground tanks in the Pacific Northwest. BSK obtained Court approval to allow the Committee to pursue litigation against Ace Tank’s insiders. After significant litigation, the matter settled for a substantial amount which funded a distribution to creditors.

Associated Grocers, Inc.

Associated Grocers, a large grocery wholesaler with annual revenues of approximately $1 billion, was guided in its efforts to restructure obligations to 17 lenders. BSK negotiated and documented the terms of the restructure, including the refinance transactions that were consummated with an independent lender.

Amerion LLC

Amerion provides internet service to customers in 25 states. Due to a significant dispute with its primary carrier and the effects of a roll up, Amerion engaged BSK to represent it in a Chapter 11. BSK worked with Amerion to negotiate a resolution of its dispute with its carrier, infusion of new capital from its members, and payment terms with its unsecured creditors — all resulting in confirmation of a Plan of Reorganization and continued operations.

Tesoro Petroleum/Olympic Pipeline Bankruptcy

Tesoro is one of four major petroleum shippers through the Olympic Pipeline running through Washington and Oregon. When Olympic Pipeline filed Chapter 11, Tesoro engaged BSK to represent it to continue addressing recovery of large refunds due it and appropriate rate-setting at the state (Washington UTC) and federal (FERC) levels. BSK spearheaded efforts in the bankruptcy court that resulted in full refunds being paid to Tesoro and other shippers and resolved long-standing rate disputes between Tesoro and Olympic Pipeline.

UStel, Inc.

UStel was a publicly-traded long distance reseller financed by Goldman Sachs Credit Partners L.P., to whom UStel owed approximately $25 million. BSK worked with UStel to negotiate DIP financing prior to filing its Chapter 11, then worked with Goldman Sachs and various carriers to complete a sale of UStel’s assets under Section 363 of the Bankruptcy Code.

Christiania Bank/In re Birting Fisheries

Over several years, BSK represented Christiania Bank in approximately a dozen matters involving the Alaskan commercial fishery, much of which is based in the Seattle area. This representation included a number of Chapter 11 proceedings that involved the complicated intersection of bankruptcy and admiralty law. The largest matter involved Birting Fisheries and approximately $35 million of secured debt. BSK ultimately negotiated a consensual Plan of Reorganization that paid Christiania in full on its senior secured debt.

General Asset Sales

BSK has represented various companies in various industries in their efforts to complete asset sales both in and out of Chapter 11. Recently, this includes asset sales completed by a software developer and wholesaler, an electronics wholesaler, a vehicle collision repair business with eight locations, a retail grocer, and commercial fishing operations.

Professional Activities

Honors

Illustrative Presentations

Civic Activities

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