News

Plan of Reorganization for Patterson Park Community CDC Approved

Date: December 3, 2009

Baltimore - On December 1, 2009, U.S. Bankruptcy Judge Robert Gordon approved the Chapter 11 plan for Patterson Park Community Development Corporation ("Patterson Park").

Patterson Park is a nonprofit organization founded in 1996 that is widely credited as the driving force behind the revitalization of the neighborhoods north of Patterson Park. Patterson Park has raised and invested millions of dollars into the neighborhood through a variety of innovative urban renewal programs, including park restoration projects, community-building events, the development of other nonprofit organizations, and hundreds of home rehabilitations. As of February 2009, Patterson Park owned approximately 125 parcels of real property in Baltimore City, Maryland and had relationships with approximately 23 lenders.

Because of the continuing adverse conditions affecting the broad economy and the local real estate market, Patterson Park has suffered significant liquidity problems. To address these issues, in September 2008, Patterson Park retained Charles R. Goldstein, a managing director of Protiviti Inc., to serve as its Chief Restructuring Officer (the "CRO"). The CRO then engaged with Bankruptcy Court approval Whiteford, Taylor & Preston ("WTP") to serve as Patterson Park's bankruptcy and reorganization counsel. In February 2009, during the bottom of the recession, Patterson Park was forced to file for protection under chapter 11 of the Bankruptcy Code in direct response to the adverse actions of one of its lenders.

WTP's Brent Strickland, Kristen Perry, and Steve Gerald worked with the CRO and Patterson Park's Board of Directors, Ed Rutkowski, Grant Corley, and David Tufaro, to develop a Plan of Reorganization for Patterson Park. With the support of a majority of its creditors, this plan was confirmed by the Bankruptcy Court.

Paul Nussbaum, the head of WTP's Business Reorganization and Bankruptcy practice, said, "We were all very pleased to have a hand in Patterson Park's successful emergence from bankruptcy. It has been a critical part of the revitalization of downtown in the past decade and a half."


With over 150 attorneys, Whiteford, Taylor & Preston is dedicated to helping our clients achieve their business goals through strategic legal counsel.  We serve our clients across the nation and around the globe from our base of six offices in Delaware, Maryland, Virginia, and Washington, DC.  For more information, please visit our website at www.wtplaw.com.