Debtor Representations (Chapter 11)
Chapter 11 is typically used to reorganize a business, which may be a corporation, sole proprietorship, or partnership. A corporation exists separate and apart from its owners, the stockholders. A case filed under Chapter 11 of the United States Bankruptcy Code is frequently referred to as a “reorganization” bankruptcy. In these troubling economic times, it is imperative that your business does not enter the point of no return – the point at which bankruptcy becomes inevitable. If your business is experiencing financial distress, call ASK LLP to see if a Chapter 11 reorganization is right for you.
ASK LLP represents Chapter 11 debtors of all sizes. Most recently ASK LLP represented Madison 92 Associates LLC, an $82 million New York City Marriot-flagged hotel in its successful restructuring. ASK also represented Stillwater Offshore, a billion-dollar hedge fund in its Chapter 11 orderly liquidation. ASK has debtor-side experience with restaurants, real estate, retail, and hospitality, among many other industries.
Asset Sales and Purchases
A core part of ASK’s practice is representing parties interested in making strategic or financial acquisitions of assets from bankruptcy estates via section 363 of the Bankruptcy Code or through a confirmed plan of reorganization. ASK LLP attorneys counsel clients through all aspects of the section 363 process, including negotiation of purchase agreements, bidding procedures, stalking horse bidder protections, and auction participation and represent asset purchasers at court hearings to approve bid protections and asset sales.
ASK attorneys represented Chinese conglomerate Heining Mengnu Group Co., Ltd. (Mengnu), the largest unsecured creditor of Jennifer Convertibles, Inc. (JC), in its acquisition of the debtor. Mengnu served as the DIP Lender and Plan Sponsor and ultimately acquired JC through a plan of reorganization, obtaining over 90% of JC’s common stock. ASK LLP attorneys also also represented Royal Spirit Ltd., a Hong Kong company and the largest creditor of The Connaught Group, a leading manufacturer and retailer of women’s designer clothing with over $100 million in annual revenue that filed for bankruptcy. ASK used Royal Spirit’s leverage as the largest unsecured creditor to acquire The Connaught Group’s assets.
Most recently, ASK LLP attorneys represented Parts Authority Metro LLC in the acquisition of substantially all of the assets of California-based aftermarket automotive parts distributor Metropolitan Automotive Warehouse, Inc. and its affiliate Star Auto Parts, Inc. ASK LLP attorneys also represented Q Holdings LLC in the successful acquisition of the Quirky.com platform and related intellectual property in the Quirky, Inc. bankruptcy proceeding.
ASK LLP has a wide array of experience representing creditors of all types in Chapter 11 restructurings, including secured, unsecured, priority and administrative. We pride ourselves on thinking outside the box to try to get recovery for our clients, even when that possibility seems remote. ASK LLP represents creditors across the entire spectrum of industries including apparel, retail, food & beverage, oil and gas, renewable energy, healthcare, and mining, to name a few.
ASK LLP often represents shareholder groups who are being treated unfairly by other bankruptcy constituents who are entitled to priority under the bankruptcy code. As an example, ASK LLP attorneys represented a group of shareholders in the bankruptcy case of Visteon, Inc., a $2 billion dollar automotive supplier. ASK LLP lawyers appealed Visteon’s plan of reorganization, arguing that the shareholders were being treated unfairly under the plan. As a result, Visteon settled with the shareholder group for $2,250,000
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