- Advise creditors and creditors committees regarding debtors’ financial activities, risk factors and potential recoveries;
- Conduct investigations for preference payments and fraudulent conveyance actions;
- Draft/evaluate/negotiate reorganization plans.
- Devise pre-bankruptcy strategies and negotiate “buy-in” of parties in interest;
- Assist in the preparation of initial and on-going financial schedules;
- Negotiate/work with the creditor committee professions and the DIP lender during the pendency of the case;
- Assistance with (i) developing “Offering Memoranda” for the sale of assets under Sec. 363 of the Bankruptcy Code (“Code”) and (ii) negotiating the terms of sale.
- Manage debtor’s post-petition and/or post-confirmation matters;
- Conduct investigations (e.g., forensic and fraud projects) as warranted;
- Wind down affairs of debtor, liquidate assets, resolve claims against the estate, distribute assets to creditors, and file statutory compliance reports.
Served as financial advisor to various Debtors, in which our roles included:
- Assisting in the preparation of the Plans of Reorganization;
- Negotiating terms with the DIP lender during the reorganization period;
- Performing various financial analyses required by the Debtors as well as those requested by Creditor Committees.
After functioning as advisor to Creditors Committees of two separate bankrupt entities, we were retained to fill the role of Liquidating Trustee for two separate Liquidating Trusts that are expected to return approximately 35% and 50%, respectively, of approved creditors’ claim values, which total $12.8 million and $19.0 million, respectively. As Liquidating Trustee in these two matters, we also:
- Provided oversight (with support from legal counsel) in pursing, negotiating and settling numerous preference actions;
- Initiated a major avoidance action against the former owner for taking out excess dividends, and management/technology fees (which was settled for more than $10 million);
- Dealt with the IRS in an examination of the federal income tax return, which substantiated a refund of over $2.0 million.
Coordinated the auction of two separate businesses, including overseeing the process of seeking viable bidders. Specific roles included:
- Reviewing each bidder’s financial ability to consummate the transaction;
- Selecting the “stalking horse” company;
- Participating (with legal counsel) in developing the rules of the auction process;
- Participating in the actual auction process in bankruptcy court.
In both instances, the final purchase price was increased significantly over what was forecasted to be received.
Negotiated settlements with:
- One of the largest labor unions in the United States regarding a multi-million dollar post-employment benefit claim;
- The Pension Benefit Guarantee Corporation (a federal corporation created by the Employee Retirement Income Security Act of 1974) regarding multi-million dollar pension benefit claims, which reduced unsecured claims by more than $10 million in the aggregate;
- A major workman’s compensation carrier saving the estate approximately
- An adversarial Debtor for approximately $1.5 million in connection with the termination of retiree benefits under Bankruptcy Code Section 1114.