Representative Matters

  • Representing industrial power consumers during Enron bankruptcy - Preti Flaherty's Bankruptcy Group represented over 100 major industrial power consumers in Maine who were locked in to long term, expensive power contracts with Enron.  Early in the Enron bankruptcy, Preti Flaherty moved to cancel these contracts on the unusual ground that the contracts were "forward contracts," (that is, essentially, commodities contracts, not mere long term supply contracts) and thus cancelable under special bankruptcy rules for forward contracts.  Enron opposed cancellation and sought to assume and assign these contracts, something routinely done with a valuable asset in bankruptcy.  After aggressive briefing, several hearings in the Southern District of New York, and intense negotiations with counsel for Enron, its Creditors Committee, and its lenders, Enron was forced to compromise with the Maine industrial consumers, saving Maine industries tens of millions of dollars in energy costs.
  • Town of Rockingham, VT - Preti Flaherty assisted the Town of Rockingham, VT in the acquisition of a hydroelectric generating facility located in the Town. In this case, US Gen, a bankrupt hydroelectric firm, attempted to enjoin the Town from proceeding with an eminent domain proceeding under Vermont law.  Preti asserted that the eminent domain proceedings could not be stayed.  After trial, negotiations resulted in US Gen agreeing to sell the generating facility to the Town or its designee for $72 million, the price that the Town had been asserting in eminent domain case.  Following the successful negotiation, Preti then assisted in the negotiation and financing of the acquisition. 
  • National Pasteurized Eggs, LLC - Preti Flaherty represented National Pasteurized Eggs, LLC (NPE) through complex litigation in Bankruptcy Court involving patent law issues, which led to a negotiated purchase of Pasteurized Eggs Corporation's (PEC) innovative in-shell egg pasteurization technology. Although PEC's stated goal was to use bankruptcy as a means to impair NPE's existing business, our Bankruptcy group was able to create a solution that places NPE as a worldwide leader in pasteurized eggs technology.