Thomas A. Willoughby

twilloughby@ffwplaw.com Direct: (916) 231-6651

Partner

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Tom's practice focuses on difficult insolvency related cases. Tom has been lead counsel to businesses in financial distress, trustees, Official Committees, financial institutions, and other creditors in a wide array of cases both in and out of bankruptcy court.

In one of Tom's recent cases, Tom represented a major Northern California Walnut farmer and processor in a successful reorganization, which termed out more than $30,000,000 of secured and unsecured debt. He has also recently represented two FQHC non-profit public benefit corporations in California. One successfully resolved its liquidity issues through a merger with another FQHC and the other, Tom advised it during its wind down and then filed a Chapter 7 after all patients were successfully transferred with no break in care. In the past, he has been involved in multiple health care bankruptcies from doctor's practices to skilled nursing facilities to represent a major Northern California hospital with contracts in other bankruptcy cases.

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A recent committee representation involved the Official Committee of Unsecured Creditors in the publicly traded Blue Earth, Inc. Chapter 11 case, which involved a heated plan confirmation dispute with the primary secured creditor and ultimately a beneficial resolution for the Unsecured Creditors (Approx. 40 to 50% distribution). The plan preserved the debtor's net operating losses for the benefit of the secured creditor who in return funded the payments to the unsecured creditors.

In a recent out of court workout, Tom represented a major multi-state propane distribution company in preparation for a potential Chapter 11 case and in work out discussions with its secured creditor. Tom assisted the client and its financial advisor in resolving the case, which led to a sale of the company, an 18M write off (i.e. a 50% reduction) by the secured creditor, all unsecured creditors being paid, the preservation of essentially all jobs, a payment to equity, and a significant non-compete agreement for the CEO/shareholder.

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Tom continues to represent the Official Committee of Unsecured Creditors and the Plan Administrator in the most successful AM Law 100 (600 attorney firm) bankruptcy case in which distributions to unsecured creditors currently total 64%, more than double the distributions made to unsecured creditors in the second most successful AM Law 100 case.

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In addition to his role as bankruptcy counsel, Tom has filed over 250 adversary proceedings in multiple bankruptcy courts recovering in excess of $18,000,000 through settlements and litigation. As general bankruptcy counsel, Tom has also helped chapter 11 debtors, trustees, and committees to identify potential claims, which ultimately were pursued by contingency fee counsel with recoveries exceeding $100,000,000.

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From helping clients reorganize and save a failing business, to finding assets in hard cases for creditors, to finding contingency counsel when assets do not exist to bring legitimate claims on an hourly basis, Tom repeatedly finds value for his clients in complex and challenging cases.