Charles Beckham has more than thirty years experience helping a broad spectrum of clients with bankruptcy and insolvency problems.
He has assisted in a variety of transactions including:
- Represents Agent for Senior Secure Lenders in Chapter 11 of Trinity Coal Corporation pending in Lexington, Kentucky.
- Represents Agent for DIP Lenders in ATP Oil and Gas Corp. Chapter 11 pending in Houston, Texas.
- Represented Grupo Mexico, SA in the successful reorganization of ASARCO, LLP in its Chapter 11 proceeding in Corpus Christi, Texas. The AMC Plan of Reorganization resolved billions of dollars of claims and was confirmed over the objection of numerous creditors and other parties in interest.
- Represented Lothian Oil, Inc., the Debtor in the Chapter 11 of this independent oil exploration and production company pending in the Western District of Texas.
- Represented Newfield Exploration Company in purchase of TXCO Resources, Inc.'s assets in Chapter 11.
- Represented Agent for Bank Group in Chapter 11 of Magnolia Energy, L.P., the owner of a 900-MW power plant located in Mississippi.
- Represented the Co-Chair of the Creditors Committee in Chapter 11 of Enron Corp.
- Represented Calyon (now known as Credit Agricole Corporate and Investment Bank) in Chapter 11 proceeding of Yukos Oil Company pending in Houston, Texas. Obtained dismissal of Adversary Proceeding filed against Calyon and other lenders.
- Represented Agent for Working Capital Lenders in Chapter 11 of Texas Petrochemicals, L.P.
- Represented Agent for Bank Group in Chapter 11 of MFI Partners, LP, a franchisee of a nationwide chain of limited service hotels. Confirmed Creditor Plan of Reorganization over objection of Debtor.
- Represented Agent for Bank Group in Chapter 11 of Tri-Union Development Corporation. Recovered full amount of claim in approximate amount of $125 million for Bank Group pursuant to Plan of Reorganization.
- Represented Agent for Bank Group in the out-of-court restructuring of Darling International, Inc., the largest independent publicly held rendering company in the United States.
- Represented the Receiver for World Manufacturing Ltd. and Manufacturera del Bravo, Ltd., two British Virgin Island corporations with operations in the United States and Mexico. Assisted the Receiver in the recovery of assets in the United States, Mexico, the British Virgin Islands, the Cayman Islands, the Turks and Caicos Islands and Switzerland.
- Has represented secured lenders, unsecured creditors, debtors and trustees in a variety of industries including numerous oil and gas, power and energy related bankruptcies.
- Has represented numerous debtors and creditors with cross-border bankruptcy and insolvency problems in Mexico.
- St. Mary's University School of Law Distinguished Graduate, 2010
- Named Texas Lawyer's Go-To Lawyer for Bankruptcy, Texas Lawyer Go To Guide, 2012
- Recognized by Chambers Global for Bankruptcy and Business Restructuring, 2012-2013
- Recognized by Chambers USA as one of the leading practitioners in Texas for bankruptcy, 2005-2013
- Named Best Lawyers' 2012 Houston Bankruptcy and Creditor Debtor Rights/Insolvency and Reorganization Law Lawyer of the Year; Recognized as one of the Best Lawyers in America - Bankruptcy and Creditor Debtor Rights/Insolvency and Reorganization Law, 2010-2014, listed in The Best Lawyers in America for more than 10 years
- Martindale Hubbell® Law Directory with a Peer Review Rating of AV® Preeminent™
- Recognized as a Top 100 Houston Super Lawyer - Bankruptcy & Creditor/Debtor Rights, 2003-2013
- "The Ins and Outs of U.S. and Mexican Enforcement and Insolvency Procedures," panelist, Haynes and Boone Seminar: Going South: Issues in Cross-Border Insolvency and Restructuring between the U.S. and Mexico, July 25, 2012.
- "Do It Right or Get Off the Horse: Valuation of Lawsuits," panelist, Texas Bar CLE 29th Annual Advanced Business Bankruptcy Course, September 9, 2011.
- "A Practical Guide to Restructuring and Bankruptcy Issues in the Energy Sector: What's Old is New," The University of Texas School of Law 28th Annual Jay L. Westbrook Bankruptcy Conference, November 19-20, 2009.
- "Derivative Exposure and Counterparty Insolvency: Lessons Learned in the Current Market," presented to The 8th Annual Gas and Power Institute, September 11, 2009.
- "Bankruptcy in the Oil Patch," University of Houston Law Foundation Advanced Oil & Gas Short Course, February 2009.
- "The Continued Expansion of the Financial Market Protections Under the 2005 and 2006 United States Bankruptcy Code Amendments," presented at The Canadian Institute's 4th Annual Advanced Forum on Derivatives: Structuring/Documenting/Managing Risk, April 30-May 1, 2007.
Selected Representative Experience
ASARCO, L.L.C. v. Barclays Capital, Inc., 702 F.3d 250 (5th Cir. 2012)
Successfully represented an international copper mining company in Fifth Circuit appeal challenging multi-million bonus claim of debtor's financial advisor.
Anti-Lothian Bankruptcy Fraud Committee v. Lothian Oil, Inc., 508 Fed. App'x 352 (5th Cir. 2013)
Represented a group of Chapter 11 debtors in a post-confirmation challenge to the debtors' plan of reorganization and a related claim for disgorgement of fees paid to the debtors' professionals. Successfully defended the plan and professional payments against claims of fraud and professional negligence and obtained complete appellate victories in the U.S. District Court for the Western District of Texas and U.S. Court of Appeals for the Fifth Circuit.
Chapter 7 Bankruptcy Proceeding
Represented Jose Maria Xacur in his 12-year struggle to obtain dismissal of an involuntary Chapter 7 proceeding instituted against Sr. Xacur, a Mexican citizen, by seven Mexican banks in Houston, Texas. Senor Xacur was able to resolved hundreds of millions of dollars of liability related to dollar-dominated debt incurred prior to the peso devaluation in the 1990s. the Chapter 7 proceeding was pending for more than 12 years in Houston, Texas, after numerous unsuccessful attempts by the Chapter 7 Trustee to enforce remedies in Mexico.
Representation of one of three petitioning creditors who were members of a bank group owed approximately $328 million (in principal) by a Nevada real estate development, South Edge.
Grossman v. Lothian Oil Incorporated (In re Lothian Oil, Inc.), 650 F.3d. 539 (5th Cir. 2011)
In a case of first impression, persuaded the Fifth Circuit to reverse the district court's finding that a non-insider creditor's claims could not be recharacterized as equity, and instead affirm the bankruptcy court's recharacterization decision.
Asset Purchase Bid
Represented Villacero Group, a large Mexican conglomerate headquartered in Monterrey, Mexico, in its bid to purchase assets of several Vitro subsidiaries in Chapter 11 proceedings in Dallas, Texas.
Representation of think3 Inc., a global leader in the computer-aided design (CAD) and product lifecycle management (PLM) software market, in its Chapter 11 bankruptcy case. The Austin, Texas-based company operated internationally through six subsidiaries.
Cash Collateral for Drilling and Workovers
Represented secured creditor in several evidentiary hearings concerning the use of cash collateral for drilling and workovers during bankruptcy case. Successfully obtained multiple orders precluding the use of cash collateral for risky drilling and workovers.
05/29/2012 - Law360 Guest Article: The Art Of Acquiring Distressed Natural Gas Assets
Technological innovation has changed the landscape of domestic natural gas production from shortage to surplus. The result: a glut of natural gas and historically low prices.
05/16/2012 - Acquiring Distressed Natural Gas Assets Outside of Bankruptcy: Good Deals Today May Be Fraudulent Transfers Tomorrow
Before seizing upon a deal that appears too good to be true, buyers should consider that the transaction may be challenged years later as a fraudulent transfer, leaving the bargain buyer without the assets and nothing but an unsecured claim against an insolvent seller.
02/22/2012 - Texas Lawyer Guest Article: A Guide to Navigating Mexican Insolvency for U.S. Creditors
Commerce between the United States and Mexico has gone on for centuries, write Charles A. Beckham Jr. and Dr. Luis Manuel C. Méjan. What has changed is the scale of the volume of goods and services exchanged across the border and the laws applicable to that mercantile trade.
11/15/2010 - Weathering the Storm: Buyer Beware, Fifth Circuit Rules Purchasers of Reorganized Debtors Liable for Undervalued Claim
In an October 19, 2010 opinion arising out of the Scotia Pacific bankruptcy cases, the Fifth Circuit ruled that reorganized Scotia and its affiliate Pacific Lumber Company were obliged – nearly 2½ years after Scotia’s reorganization plan was consummated – to pay Scotia’s former secured lenders approximately $30 million on account of a mistake made by the bankruptcy judge in calculating the amount owed to the secured lenders for the use of their collateral during the bankruptcy cases.
10/19/2010 - Weathering the Storm: Delaware Bankruptcy Court Rules Bid Procedures in Section 363 Sale Were Unfair and Unreasonable
On September 30, 2010, in In re American Safety Razor, LLC, et al.,
Case No. 10-12351 (MFW), the United States Bankruptcy Court for the District of Delaware ruled that the debtors’ proposed bid procedures for the sale of the business were unfair and unreasonable. The bid procedures, among other things, provided too much discretion to the debtors in the auction process.
12/11/2009 - Weathering the Storm: Charter Communications Decision Allows Reinstatement of Debt
Many companies secured their financing several years ago when the credit market featured advantageous pricing and loose loan covenants. Because these favorable terms would be impossible for borrowers to obtain in today’s lending environment, many viable companies with highly leveraged capital structures are looking for strategies to restructure debt. Charter Communications (“Charter”), the country’s fourth largest cable television company, took a gamble during, arguably, the most challenging period in the modern era of global corporate finance. See how the company's bold moves paid off.
09/11/2009 - Derivative Exposure and Counterparty Insolvency: Lessons Learned in the Current Market
Almost all large (and many small) companies in today’s economy use derivatives in one way or another to hedge against future risk. Hedging allows a business to limit potential exposure to market fluctuation upfront (for a price) and instead focus on its strengths and core competencies.