Purchase of assets from a Chapter 11 debtor
Our client, a commercial printer, sought to purchase all the assets of a competitor at auction in a Chapter 11 case. Over the objections of a landlord who wanted to enforce the lease and fought to prevent key equipment from being removed, the client won the bid and succeeded in growing their business for a very reasonable price.
Chapter 11 reorganization of manufacturing company
A second generation family owned manufacturing company found itself with no options when its bank refused to renew its $4 million line of credit during the financial meltdown. With no possibility of obtaining take-out financing, bankruptcy was the only choice. A Chapter 11 reorganization resulted in a new loan on better terms over the bank’s objections, and a reduction in the bank’s claim. More than a year after plan confirmation, the company is operating successfully and growing fast.
Creditors’ Committee for Subprime Lender
The Creditors’ Committee was made up of large national banks who had invested in the loans of this subprime mortgage originator. The case began prior to the mortgage meltdown, and was an early indication of the financial shakeup yet to come. The Committee worked with the Chapter 11 trustee to pursue an investigation against the insiders which resulted in a substantial settlement to the estate.
Individual Chapter 11 for real estate investor
A client who built a portfolio of single family real estate needed to get out of the business at the bottom so he could focus on his core assets and his career in the tech industry. We confirmed a Chapter 11 plan selling the real estate, and allowing him to keep the rest of his family’s assets in exchange for cash payments totaling the liquidation value of nonexempt assets. By managing the process in a Chapter 11, the client maintained control and maximized the estate.