Representative Cases
Recent Fiduciary Cases
Desert Oasis Apartments, LLC
Chapter 11 – District of Nevada, 2019-2021
Desert Oasis Apartments, LLC owned a 128-unit apartment building located off the Las Vegas strip. Kavita was appointed as the Chapter 11 Trustee after the debtor’s management failed to sell or develop its property for 17 years despite filing two prior bankruptcy cases. As Trustee, she negotiated the reduction of over $13 million in secured debt thereby creating equity for unsecured creditors. She subsequently sold the apartment building for $15.6 million (40% higher than the $9 million stalking horse bid) at an auction. Kavita successfully confirmed a plan of reorganization under which priority and general unsecured creditors will receive distributions of approximately 100% and 60%, respectively.
Desert Oasis Investments, LLC
Chapter 11 – District of Nevada, 2019-2021
Kavita was appointed as the Chapter 11 Trustee for Desert Oasis Investments, LLC, which owned nine acres of vacant land off the Las Vegas strip. Because the debtor’s real property’s liens exceeded its fair market value, Kavita obtained the consent of the secured creditor to sell the property for $12 million dollars with a carve-out to pay unsecured creditors. She subsequently confirmed a plan which provided for a meaningful distribution to unsecured creditors.
Gabriel Technologies Corporation and Trace Technologies LLC
Chapter 7 – No. District of California, 2014-2020
Calvary Community Assembly of God, Inc.
Chapter 11 – District of Nevada, 2018-2019
Calvary Community Assembly of God, Inc. operated a church, a private school, and a day care center on a nine-acre property in Northern Las Vegas. At the time of Kavita’s appointment as the Chapter 11 Trustee, the debtor was operating without a budget or any financial controls and it lacked sufficient funds to pay its operating expenses including payroll. Kavita promptly obtained a short-term loan to pay outstanding expenses and repair the real property, which had been neglected by the debtor. She subsequently sold the property for $7.75 million, which was higher than its appraised value. She then confirmed a Chapter 11 plan that provided a 100% distribution to unsecured creditors.
Horisions Unlimited
Chapter 11 – Eastern District of California, 2017
Horisons Unlimited operated eight rural health care clinics in and around Fresno, California and filed a Chapter 11 petition after its Medi-Cal reimbursement payments were suspended due to a state and federal fraud investigations and lawsuits filed against its officers and directors. Within weeks of her appointment as the Chapter 11 Trustee, Kavita reviewed the debtor’s operations, determined that the debtor had been operating without either medical malpractice and real property insurance and obtained the proper insurance coverage. She then secured the debtor’s medical records, which were in complete disarray, and assessed the medical records retention procedures. After determining that the debtor lacked the funds to continue operating, Kavita, in consultation with the California Department of Health Services, closed the clinics and converted the case to a Chapter 7 proceeding, thereby preserving the estate’s limited assets and limiting its operational liabilities. In its minute order, the Bankruptcy Court found that “Trustee Gupta did extraordinarily good work in a very difficult case and did so in a very timely fashion.”
Critical Care Medical Consultants, Inc.
Chapter 11 and Chapter 7
District of Nevada, 2016-2017
Critical Care Medical Consultants, Inc. purchased and collected medical liens. At the time of Kavita’s appointment as Trustee, Critical Care’s primary asset – medical liens – were encumbered by a lien of over $2.2 million dollars and it was embroiled in litigation with its secured creditor. Kavita negotiated a settlement of the litigation, and transferred the debtor’s medical liens to the secured creditor in exchange for the withdrawal of its claim and a carve-out from the liquidation of the medical liens to pay unsecured creditors of the estate. As a result of her administration, the unsecured creditors received a 100% distribution.
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In Re Michael Allen
Chapter 11 – Central District of California, 2014-2015
After her appointment, Kavita negotiated a court-approved settlement between the California Coastal Commission and the debtor, resolving a 15-year dispute between the parties. She subsequently sold the debtor’s real property and confirmed a plan that provided a 98.70% distribution to unsecured creditors.
In Re Thomas Shayman
Chapter 11 – Central District of California, 2014-2015
After her appointment, Kavita filed and prosecuted an action to determine that a spendthrift provision in a trust was invalid. She subsequently confirmed a plan that provided a 100% and 47% distribution to priority unsecured creditors and general unsecured creditors, respectively.
Creditor Cases
The Firm has represented a variety of corporate and individual creditors in all phases of Chapter 11 and Chapter 7 cases.
Debtor Cases
Kavita has represented a variety of debtors in large-scale restructurings across a variety of industries. Some of those representations include non-profits corporations (Crystal Cathedral Ministries, a mega-church), hospitality (5th Avenue Partners, LLC, a boutique hotel in San Diego and Forbco Management Company, owner of chain restaurants), real estate (SunCal Cos., one of California largest developers and Pres-Lahina, owner of a strip mall in Hawaii), and energy (Titan Energy Company, an oil company).*
*matters handled prior to joining Gupta Ferrer