Bankruptcy & Creditors' Rights

Our People
Representative Matters
News & Publications
Presentations & Events
Tonkon Torp's bankruptcy and corporate reorganization practice is recognized nationally as strategic and results-oriented. Our flexible teams of seasoned lawyers identify and tailor solutions for debtor and creditor clients of all sizes in all types of commercial and business insolvency matters.

Our experience covers the full range of bankruptcy and creditors' rights issues, including:
  • Corporate reorganizations and debt restructuring.
  • Bankruptcy proceedings for debtors and creditors.
  • Sales and acquisitions of troubled assets, inside and outside of bankruptcy.
  • Real estate foreclosures.
  • Commercial and collection litigation in state and federal court.


Our bankruptcy and reorganization teams help clients restructure to provide optimum operating efficiency, preserve liquidity and maximize value. We help companies acquire and sell troubled assets, both in and out of bankruptcy. Debtor clients facing Chapter 11 reorganization or Chapter 7 liquidation rely on us to negotiate the best possible outcome and clear the road for a viable future. We assist in negotiation and structuring of alternate bankruptcy forms and related financing such as debtor-in-possession and prepackaged bankruptcies.


We represent creditors in renegotiating debt, workouts of nonperforming loans, foreclosure proceedings and creditor litigation. We counsel on creditors' rights issues to help structure the most advantageous transaction and ensure recovery of capital. In bankruptcy proceedings, we represent trade creditors, individual creditors as well as official committees. Our track record includes cases where creditor clients recovered 100 cents on the dollar, plus interest.

Representative Bankruptcy Experience:

  • Sunwest Consolidated Enterprise - Probably the biggest and most complex bankruptcy case ever filed in Oregon, the unwinding, restructuring and $1.2 billion sale involving over 700 of Sunwest entities demanded legal expertise in securities, tax, real estate, corporate governance, litigation and mergers & acquisitions. Al Kennedy and Tim Conway worked with a team of Tonkon Torp lawyers and paralegals who developed and executed a complex resolution that avoided foreclosure of Sunwest’s property empire and the loss to investors of over $600 million.
  • Roman Catholic Archdioceses of Portland – On behalf of the Claimants' Committee, Al Kennedy led a team of Tonkon Torp lawyers in the first-ever bankruptcy filing by a Catholic Archdiocese. Tonkon Torp successfully navigated numerous issues of first impression arising from the intersection of real estate, corporate, constitutional, bankruptcy, charitable trust and religious institutions law. All claimants were paid in full with interest.
  • Renaissance Custom Homes LLC – With the bursting of the real estate bubble in 2008/09, developer Randy Sebastian turned to Al Kennedy and Tim Conway to find a path through bankruptcy and emerge to re-grow his company.
  • McGrath’s Publick Fish House, Inc. – On behalf of this Salem-based chain of 20 restaurants operating in multiple states, Leon Simson led a Tonkon Torp team to seek protection under Chapter 11 and to produce a fast track resolution that resulted in a confirmed plan of reorganization allowing the reorganized company to emerge from bankruptcy.
  • Blue Heron Paper Company – When Blue Heron Paper Company filed for Chapter 11 protection, its largest secured lender, Wells Fargo Bank, N.A., turned to Tim Conway and Mike Fletcher to protect its interest throughout the case, including negotiating with Blue Heron regarding the use of Wells Fargo's cash collateral and regarding the treatment of Wells Fargo's secured claim.
  • Pope & Talbot, Inc. – When this venerable Portland-based forest products company filed its bankruptcy case in Delaware in late 2007, Tonkon Torp represented the buyers in two different acquisitions. Al Kennedy orchestrated the acquisition of Pope & Talbot's operations in South Dakota and Wyoming by a strategic buyer. Leon Simson represented a private equity fund in the acquisition of Pope & Talbot's Oregon pulp mill.
  • Fountain Village Development – Al Kennedy and Ava Schoen secured a favorable Chapter 11 restructuring for this commercial real estate developer with a portfolio of 20 historic properties in downtown Portland.
  • Storables Inc. – In 2009, Al Kennedy and Mike Fletcher helped this prominent retail homewares company to shed debt and pare down its operations by rejecting and restructuring its lease obligations in a Chapter 11. The company emerged from bankruptcy in nine months.
  • Columbia Aircraft – Leon Simson and his team helped this privately held, Bend-based light aviation aircraft manufacturing company through a Chapter 11 bankruptcy bidding auction, with ultimate sale to Cessna's parent company, Textron, for $26.4 million.
  • The Columbian Publishing Company – Nine months after we filed its Chapter 11 case, Southwest Washington’s largest daily newspaper emerged from bankruptcy in early 2010, thanks to the work of Al Kennedy and Mike Fletcher.