Cathy Hershcopf

Cathy Hershcopf represents buyers and sellers of real estate, inventory, intellectual property and other assets in distressed situations and special opportunities. She has advised debtors in technology and retail and 200+ committees of unsecured creditors in Chapter 11 cases nationwide. Cathy has represented official committees of unsecured creditors in some of the most significant retail Chapter 11 bankruptcy proceedings throughout the country.

Creditor committee representations include:

• Advised the official committee of unsecured creditors of Claire's Stores during its bankruptcy proceedings, in which the accessory retailer's Chapter 11 plan of reorganization was approved with total leverage decreasing by more than $1.5 billion.
• Represented the official committee of unsecured creditors of Mervyn's, a chain of approximately 175 department stores, and prosecuted a $1 billion fraudulent conveyance litigation against various private equity firms and financial institutions leading to a significant settlement in excess of $150 million.
• Secured a substantial recovery for the unsecured creditors of KIT Digital, a public holding company with subsidiaries providing digital television and media solutions. The KIT Digital business restructured and now operates under the name Piksel.
• Advised the official committee of unsecured creditors of video game maker Atari as it restructured the business and confirmed a Chapter 11 plan in 2013, which provides for distributions to general unsecured creditors.
• Coordinated the sale of more than $500 million of Montgomery Ward's real estate through a designation rights agreement with Kimco Realty, led a campaign to negatively solicit a liquidation plan proposed by GE Capital, and assisted in settling the committee's lawsuit against GE Capital for more than $80 million, which achieved a distribution to unsecured creditors in excess of 600 percent of the projected liquidation value of the company's asset.

Cathy also represented the creditors’ committees in Chapter 11 bankruptcy proceedings of RadioShack, HH Gregg, ASE/Performance Bikes, MC Sports, Charming Clarlie’s, American Apparel, Frederick’s of Hollywood, Deb’s Shops, Sbarros, Claim Jumper, Allen's, Blockbuster, Brookstone, The Sharper Image, Eddie Bauer, Bob's Stores, Footstar, Avenue/United Retail Group, New Weathervane, Archibald Candy, Hancock Fabrics, The Bombay Company, Domain Furniture, Steve & Barry's, Sports Collectibles, Lillian Vernon, Goody's Family Clothing, Ritz Camera, Orchard Brands, Scooter Stores, TPO Hess, Robb & Stucky, Wickes Furniture, Boscov's, Filene's Basement, Loehmann's, Steinbach's, Bedford Fair, C&R Clothiers, Casual Male, Trade Secret, Oriental Trading, Rag Shops, Christophers, Athlete's Foot, Herman's Sporting Goods, Jumbo Sports, Just for Feet, Pic N' Pay, Wave 2 Wave, Urban Brands, Levitz Home Furnishings, The Walking Company and Sweet Factory, as well as hundreds of others.

Debtor and company representations include:

• Charlotte Russe: Representing the teen retailer in selling substantially all of its assets.
• Eleven James: Wind down of on-line luxury watch subscription program.
• Hastings: Acquisition of entertainment retailer with $500 million in annual revenue and subsequent 363 sale. 
• Interliant: Sale of its web hosting businesses as going concerns. 
• Metropark USA: 363 sale and  lease auction of teen-targeted retailer that generated more than $1.5 million in proceeds. 
• Crabtree & Evelyn: Assisted this national retailer with the closure of 35 unprofitable retail locations and assisted the debtor with their reorganization around a smaller retail platform. 
• Metromedia Fiber Network: Assisted the telecommunications and fiber network debtor in the sale of several stand-alone businesses and excess real estate to fund the successful reorganization of the company and assist in restructuring approximately $5 billion in debt. 

Representations of purchases of IP and consumer brands include:

• Graceland: Represented Joel Weinshanker in the acquisition of 85% of Elvis Presley's Graceland the right to operate live events and other theme parks and the acquisition of a minority interest in the intellectual property of Elvis Presley and Muhammad Ali.
• Entropic Communications: Represented this public company in connection with its purchase of Trident Microsystems' set-top box system and diverse international patent portfolio in a 363 sale.   
• Tapout, Sinister and Silver Star: Represented Authentic Brands Group, a brand development and licensing company, in its acquisition of the intellectual property.
• Firedog: Represented a public company in purchasing the business, brand and intellectual property from Circuit City in a 363 sale. 
• Living Social: Represented the web-based company featuring daily deals in purchasing intellectual property from a bankruptcy sale.
• Linens ‘n Things: Bought the intellectual property of this retailer of home textiles and housewares in a 363 sale and sold it four years later for more than six times the purchase price.
• RadioShack, Metropark, Ritz Camera, Mervyn's, Goody's, Robb & Stucky, Sharper Image, Montgomery Ward and Bombay Company: Assisted in the sale of the brand names of these retailers in 363 sales, independently from their other assets.
• National Entertainment Collectibles Association: Represented this manufacturer of collectibles in purchasing the Movie Gallery trademark and related brands in a 363 sale.

Employee committee representations include:

• United Airlines ESOP Committee: UAL Chapter 11 case, including successfully convincing the Bankruptcy Court to stay a class-action lawsuit brought against the ESOP Committee in District Court and ultimately obtaining releases on behalf of the ESOP Committee and its past and current members.
• Enron Employee Related Issues Committee: $28.8 million severance package for 4,500 employees terminated by Enron one day after the bankruptcy was filed.

Real estate restructuring representations include:

• Madison Avenue Hotel: Assisted the liquidating trustee in selling this 72-room hotel at Madison Avenue and 27th Street, post confirmation.
• Saint Vincent's Hospital: Served as the tort committee's representative on a joint committee to redevelop the Greenwich Village campus in the first bankruptcy, negotiated real estate as security for its distribution and sold its security (Staff House in Greenwich Village) in the second Chapter 11 case in a sealed bid 363 sale.
• Tower Records: Represented the purchaser of approximately $250 million of assets and implemented a creative real estate sale process which produced 500 percent return on investment in 90 days.

Cathy regularly addresses creditor groups, real estate professionals, distressed debt conferences and other groups regarding creditors' rights and bankruptcy and real estate matters. She is an active member of the International Council of Shopping Centers and participates in annual sessions with attorneys from around the country regarding shopping center leasing and landlord and tenant issues related to retail bankruptcies.