Trustee & Receiver
Our attorneys have considerable experience representing Trustees in Chapter 7 and Chapter 1 Bankruptcy cases as well as Receivers appointed under state law. The firm’s experience derives from the representation of David W. Allard who was appointed a United States Chapter 7 bankruptcy trustee in 1982 and became the president of the National Association of Bankruptcy Trustees in 2000. He was the Chair of the Subcommittee on Trustees and Examiners – American Bar Association Section of Business Law from 2004 to 2007. He was appointed a fellow of the American College of Bankruptcy in 2013.
The firm represented Mr. Allard in thousands of bankruptcy cases, including when he served as the Chapter 7 Trustee of the DeLorean Motor Company from 1983 until 2000. The principal assets of the estate were its causes of action against the officers and directors of the company, including John DeLorean, and the company’s auditor, Arthur Andersen. As Trustee, he successfully prosecuted more than one hundred lawsuits in Michigan, California, Florida, and elsewhere and paid a distribution to general unsecured creditors in excess of 90 percent.
Mr. Allard also served as the Creditor Trustee of the ATI (Air Transport International) Creditor Trust from 1998 to 2005. This case principally involved the sale and liquidation of an airline headquartered in Little Rock, Arkansas. The company hauled both freight and passengers in 33 states and numerous countries. The most significant assets following the sale of the company were its causes of action against a consortium of banks and the seller and purchaser in a leveraged buy-out transaction. The litigation was successfully settled and a 50 percent distribution was made to the general unsecured creditors.
He later served as the Receiver appointed by the United States District Court in Federal Trade Commission v. Career’s Inc. The company employed over 100 telemarketers who sold resume and employment services for the airline industry. He operated the company in accordance with Federal Trade Commission (“FTC”) guidelines until the FTC and the company were able to settle issues related to alleged violations of the FTC Act.
Mr. Allard served as the Chapter 11 and Chapter 7 Trustee of Glen Eden Hospital Inc., a hospital providing in-patient psychiatric services for approximately one year until he sold the hospital.
He served as the Receiver appointed by the United States District Court in Internal Revenue Service v. Elbert Hatchett. Elbert Hatchett was a well known Michigan attorney who primarily practiced criminal and personal injury law. He investigated the assets, liabilities and ongoing operations of the law practice while Mr. Hatchett negotiated the amount and payment of alleged past due federal income taxes.
Mr. Allard also served as the Chapter 11 Trustee of Lost Peninsula Marina Development Co., LLC and the related cases of Lost Peninsula Marina, LLC and Maumee Bay Supplies, LLC. Although the principal services being performed in these cases was the operation and sale of an 82 acre marina and land development company, he is currently working with special counsel to prosecute several lawsuits. The litigation involves the approvals granted for development of the property and the responsibility of each entity to provide adequate water supply.
Mr. Allard was a member of the Board of Directors of the National Association of Bankruptcy Trustees since 1993 and served as its President in the years 2000 and 2001. He currently serves as a Past-President. He has also served as the Chair and Vice- Chair of the Trustees and Examiners Subcommittee of the American Bar Association, Section of Business Law, Business Bankruptcy Committee from 2001 to 2007.
Mr. Allard was a member of the Standing Panel of Chapter 7 Trustees in the Eastern District of Michigan from 1982 and served as a Chapter 7 and Chapter 11 trustee, creditor trustee, and as federal and state court receiver.