Armand “Jay” Kornfeld

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

Jay Kornfeld represents companies in commercial creditor and debtor issues, emphasizing workouts, restructurings, and Chapter 11 reorganizations. Over the years, he has represented clients in diverse industries, including commercial fishing, telecom, wood products, retail, grocery, and commercial real estate. 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 BSK lawyers as “effective, pragmatic” “creative and practical,” cited Gayle Bush as “a top-tier debtor lawyer,” cited Jay Kornfeld as “an outstanding negotiator,” and cited the pair as “names that instantly spring to mind” and “a pair of creative problem solvers.”

Education

Representative Cases

Representing financially troubled companies in diverse industries, Armand “Jay” Kornfeld 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.

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.

Westar Financial Services, Inc.

A publicly traded company, Westar originated, serviced and securitized vehicle leases. After its primary lender terminated its relationship, Westar was guided in its Chapter 11 to recover on claims against the lender and maximize the value of its assets. BSK’s work resulted in a confirmed Plan of Reorganization providing more than $30 million in distributions, representing full payment to creditors and a return to equity.

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.

Emerald Resources

Emerald Resources owned and operated several catcher/processor vessels that operated in Russia. Ultimately, Emerald was placed into an involuntary bankruptcy by several of its vendors and engaged BSK to represent it in that involuntary bankruptcy. BSK worked with the secured lender, DNB, the creditors committee and other constituents, to effectuate a sale of Emerald’s vessels that resulted in full payment of DNB, satisfaction of the other creditors and a distribution to the equity holders of Emerald.

Royal Seafoods, Inc.

BSK represented the Unsecured Creditors Committee in a highly litigious Chapter 11 between Royal Seafoods and its lender. After extensive negotiations, the Committee supported a Plan proposed by the secured lender, which was confirmed and paid unsecured creditors in full.

Cossack Caviar, Inc.

BSK negotiated an asset sale prior to filing Cossack into a Chapter 11. The sale involved a barge, under arrest in British Columbia, Canada, that Cossack had lease rights in and an option to buy, but was owned by another entity. The buyer under the Cossack asset sale insisted on including this barge in the transaction. BSK successfully obtained a Bankruptcy Court order authorizing Cossack to purchase the barge and resell it as part of the asset sale, and worked with Canadian counsel to obtain the necessary orders and agreements from lien holders of the barge to complete the transaction.

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 Laplink, Inc., a software developer and wholesaler, Murphy Electronics, Inc., an electronics wholesaler, Thoroughbred, Inc., a vehicle collision repair business with eight locations.

Professional Activities

Honors

Presentations

Civic Activities