Beck, Daniel C. - Winthrop & Weinstine

Of Counsel

Daniel C. Beck

My Experience

I represent secured lenders in workouts, restructuring, litigation, bankruptcy, insolvency, creditors remedies, foreclosures, liquidations and receiverships. Specific areas of experience also include representation of:

Loan servicers in default, workout, foreclosure, liquidation and bankruptcy situations
Secured lenders in litigation, including the defense of lender liability and other claims and defenses asserted by borrowers
Parties in bankruptcy litigation, including preference and fraudulent transfer litigation
Purchasers of bankruptcy assets and bankruptcy claims
Purchasers of financially troubled companies or troubled loans
Parties to executory contracts in bankruptcy proceedings
Landlords and equipment lessors in default and bankruptcy situations
Creditors and trade creditors in litigation and bankruptcy matters
Non-debtor parties in all areas of insolvency

Representative Matters

Represented secured lenders in numerous receiverships involving all types of collateral (including C&I) and businesses, including a brewery, an asbestos remediation company, an amateur hockey team, a trucking company, a construction company, grocery stores, a seasonal retail packaging company, a drywall supply company, a cubicle supplier and assembler, an indoor soccer facility, a golf course, car dealerships, hardware stores, convenience stores, hotels, an airport fixed-base operator, apartments and multi-family housing, condominium developments and all kinds of commercial real estate.
Represented secured lender with mortgages on three historic buildings in downtown St. Paul (the St. Paul Athletic Club, the St. Paul Building, and the Lowry Building). The engagement included multiple forbearance agreements, followed by three single asset Chapter 11 bankruptcy filings, and lift stay motions which resulted in escrowed deeds in lieu of foreclosure and ultimately led to a loan pay-off in advance of deadlines imposed by the settlement.
Represented lender who provided secured seller financing on popular Minneapolis restaurant. The engagement resulted in a strict foreclosure and voluntary surrender under Article 9 which resulted in the lender assuming ownership and operation of the restaurant assets on a going concern basis.
Represented secured lender to a bridge contractor which encountered catastrophic cost overruns on a prominent bridge construction project. The engagement resulted in a prolonged workout involving multiple forbearance agreements over the span of nine months and multiple ongoing construction projects, including bonded projects which required separate agreements with multiple sureties. The engagement ultimately resulted in the orderly liquidation and wind down of the bridge construction company; the listing and sale of two related companies; and the listing and sale of the borrower’s headquarters and office complex, resulting in the lender receiving payment in full.
Represented hedge fund with over $360 million in secured and unsecured debt connected to the $3.5 billion Petters Ponzi scheme, including secured and unsecured loans, which became part of the Polaroid Chapter 11, the Sun Country Airlines Chapter 11, the Petters Company, Inc. Chapter 11 case and the Petters receivership. Litigation, including avoidance and claw-back litigation, took place in multiple court venues, including the bankruptcy cases, related adversary proceedings, the receivership proceeding and federal district court. Achieved the first significant settlement with the Petters’ trustee and the related bankruptcy estates.
Represented secured lender on defaulted commercial loan where borrower filed counterclaims based on theory of aiding and abetting. The engagement resulted in dismissal of the aiding and abetting claim on summary judgment; foreclosure of the lender’s collateral; the appointment of a receiver over the assets of the individual guarantor; collection of the full unsecured deficiency from the guarantor; and the defeat of the borrower’s appeal to the Minnesota Court of Appeals.
Represented secured lender liquidating a large portfolio of loans to numerous home builders and residential real estate developers. Collateral included vacant lots, numerous spec homes, condominiums and properties involving homeowners associations. Remedies exercised on behalf of the lender included judicial foreclosures, foreclosures by advertisement, voluntary foreclosure agreements, deeds in lieu of foreclosure, deeds in escrow, reduction of redemption period to five weeks for vacant properties, and receivership.
Represented loan servicer with mortgages and liens on over seventy convenience stores located in multiple states across the Midwest, including Minnesota. The borrower asserted multiple defenses and lender liability claims, all of which were defeated through summary judgment.
Represented secured lender in multi-year workout of a highly seasonal multi-location retail store with collateral in multiple locations across the Midwest. Engagement included a complicated risk sharing and subordination agreement with subordinated secured lender. Engagement ultimately resulted in a listing and sale of the business on a going concern basis and payment in full of both secured lenders.
Represented loan servicer in bankruptcy proceeding with mortgages and liens on approximately forty convenience stores. The borrower’s efforts to confirm a cram-down plan of reorganization were defeated, which led to an agreed-upon 363 sale where each of the convenience stores was sold at public auction.
Represented secured lender who held mortgages and security interests on multiple movie theatres. Prolonged forbearance and negotiation resulted in take-out financing and payment in full.
Represented secured lender in litigation leading to receivership over the assets and business of the borrower, which then led to a voluntary suspension of the receivership and a several year workout and restructuring of a multi-location supplier to the construction industry. After several years and twelve forbearance agreements, the loan returned to a fully performing loan and the lender resumed a normal lending relationship with the borrower with an increasing line of credit to accommodate the borrower’s growth.
Represented secured lender to company which owned and leased construction cranes to the construction industry. Provided DIP financing to the company early in its Chapter 11 case in exchange for stipulated favorable treatment or stay relief. Secured lender was ultimately granted stay relief pursuant to stipulation and the borrower cooperated in the sale and liquidation of the lender’s collateral.
Represented secured lender in contested Chapter 11 cash collateral hearing involving a printing company which project significant erosion of cash, inventory and account receivable levels early in the bankruptcy case. Obtained favorable cash collateral order which constricted the borrower’s ability to spend cash and erode collateral value.
Represented secured lender with multi-million dollar deficiency claim against recalcitrant individual debtor who filed Chapter 11. Successfully stopped excessive cash expenditures by the debtor and converted the debtor’s case to a Chapter 7 liquidation, at which point trustee took control of income producing assets sufficient to provide for ultimate payment in full of all creditor claims.
Represented lead lender in a multiple-participant loan secured by mortgages on a newly constructed 126 unit residential cooperative. Case involved complicated title problems associated with the cooperative structure, mechanic’s liens with disputed early-start priority, litigation regarding the scope of the guarantor’s liability, ongoing disputes among the participant banks, and ultimately, a failed Chapter 11 bankruptcy proceeding. A receiver was appointed to manage the property, lease units and generate income while the real estate market recovered. Ultimately, all issues were resolved, the co-op structure was converted to a condominium structure, and the lender took title to and realized on the value of the unsold condominium units.

Awards

Best Lawyers in America®

Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law, 2020-2024

Bold Perspectives

Article

Conversion and Dismissal of Cases

11.04.22

Event

Troubled Commercial Loans: Commercial Real Estate Foreclosure and Receivership

09.24.20

Event

Troubled Commercial Loans: Repossession and Foreclosure of Non-Real Estate Business Assets

09.17.20

Event

Troubled Commercial Loans: Workout and Forbearance Agreements

09.10.20

Daniel C. Beck

My Approach

Practice Areas

Bold Perspectives

Conversion and Dismissal of Cases

Troubled Commercial Loans: Commercial Real Estate Foreclosure and Receivership

Troubled Commercial Loans: Repossession and Foreclosure of Non-Real Estate Business Assets

Honors & Awards

Minnesota Super Lawyers®

AV Preeminent

Best Lawyers in America®

Associations & Memberships

American Bankruptcy Institute

American College of Mortgage Attorneys

Commercial Finance Association

Risk Management Association

Turnaround Management Association

Hennepin County Bar Association

Minnesota State Bar Association

Daniel C. Beck

My Approach

Practice Areas

Creditors’ Remedies, Bankruptcy & Work-Out

Bold Perspectives

Conversion and Dismissal of Cases Arrow Right

Troubled Commercial Loans: Commercial Real Estate Foreclosure and Receivership Arrow Right

Troubled Commercial Loans: Repossession and Foreclosure of Non-Real Estate Business Assets Arrow Right

Honors & Awards

Minnesota Super Lawyers®

AV Preeminent

Best Lawyers in America®

Associations & Memberships

American Bankruptcy Institute

American College of Mortgage Attorneys

Commercial Finance Association

Risk Management Association

Turnaround Management Association

Hennepin County Bar Association

Minnesota State Bar Association

Conversion and Dismissal of Cases

Troubled Commercial Loans: Commercial Real Estate Foreclosure and Receivership

Troubled Commercial Loans: Repossession and Foreclosure of Non-Real Estate Business Assets