Committees are appointed in chapter 11 bankruptcies to represent the interests of similarly situated parties. The most commonly appointed is the official committee of unsecured creditors, though committees may also be appointed to represent other groups of stakeholders such as tort claimants or shareholders. Ask yourself:
- Does your company frequently find itself a creditor of customers that file bankruptcy?
- Have you gone through a chapter 11 case as an unsecured creditor and wondered what it would be like to have a real voice in the case?
- Have you wondered what the creditors’ committee does in a chapter 11 case?
- Have you considered if your company should sit on a creditors’ committee, given the opportunity, but worried what that would mean for your company’s claim as an individual creditor?
- Are you a shareholder of a corporation or a member of an LLC which has filed chapter 11 and considered whether a shareholder committee could give you a voice in the case?
We Can Help
Sugar Felsenthal’s Restructuring, Insolvency, & Special Situations (“RISS”) attorneys are among the most experienced in the United States.
View our credentials here. View our Team here.
You may benefit from reading the following:
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So… What Now? Some Perspective from the Insolvency Arena on What Happens Next (written for the National Association of Credit Managers)
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Chapter 11 Subchapter V: A Cheat Sheet for Credit Managers
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Chapter 11 Bankruptcy – If You’re Going to Watch the Game, You Should Know the Players
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Strategic Alternatives For And Against Distressed Businesses
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The ABCs of ABCs, Business Bankruptcy & Corporate Restructuring/Insolvency
For a free consultation, email turnaround@sfgh.com or call any of Jonathan Friedland (312.704.2770), Mark Melickian (312.704.2174), or Jack O’Connor (312.704.2178). All inquiries will be treated with absolute strict confidentiality.
Publications
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07/28/2020
Jonathan Friedland and Hajar Jouglaf’s article entitled “Small Business Reorganization Act of 2019” published in BankruptcyData's 2020 Bankruptcy Yearbook, Almanac & Directory
Jonathan Friedland and Hajar Jouglaf’s article entitled “Small Business Reorganization Act of 2019” published in BankruptcyData's 2020 Bankruptcy Yearbook, Almanac & Directory.
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05/15/2020
Family Business Magazine publishes article co-authored by Michael Brandess entitled, “Practical Steps You Can Take to Help Your Business Survive COVID-19”
Family Business Magazine publishes article co-authored by Michael Brandess entitled, “Practical Steps You Can Take to Help Your Business Survive COVID-19”
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05/12/2020
Sugar Felsenthal Grais & Helsinger partner Jonathan Friedland published in Private Directors Association May Newsletter
Sugar Felsenthal Grais & Helsinger partner Jonathan Friedland wrote an article for the Private Directors Association entitled “Don't Shoot the Messenger, But Your Company May Be Insolvent. What Do You Do Now?”
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03/20/2020
“You Will Survive! How Your Business Will Survive Coronavirus – a Crisis Management Plan”
Can your business survive? In a word – yes. While most businesses will suffer, and many will fail, yours can survive. SFGH partner Jonathan Friedland and law clerk Kyle Fleck authored “You Will Survive! How Your Business Will Survive Coronavirus – a Crisis Management Plan” to give business owners insight on what they can do, what they should do, today, tomorrow, and next week to best position their businesses to survive during the COVID-19 crisis, and to ultimately thrive when the economy begins to recover.
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03/17/2020
Mark Melickian guides COVID-19 impacted businesses on how to access emergency cash in “Protect Your Business from Coronavirus with a Disaster Assistance Loan”
Has Coronavirus (COVID-19) made it challenging for your business to make payroll, maintain inventory, or pay your creditors? The U.S. Small Business Administration (SBA) will offer low-interest loans to businesses impacted by COVID-19 to help overcome the temporary loss of revenue businesses are facing. SFGH’s Restructuring, Insolvency, and Special Situations (“RISS”) head Mark Melickian advises businesses to jump on these opportunities now in his article “Protect Your Business from Coronavirus with a Disaster Assistance Loan.”
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02/05/2020
SFGH Partner Lisa Vandesteeg authors cover article for the American Bankruptcy Institute Journal entitled, “Technology and Legal Ethics: A User’s Manual (Part I)"
The cover of the February 2020 issue of the American Bankruptcy Institute Journal features an article authored by Lisa Vandesteeg entitled “Technology and Legal Ethics: A User’s Manual (Part I)” – the first in a two-part series discussing the fundamentals of the intersection of cybersecurity and ethics for bankruptcy attorneys. The article in ABI’s February issue discusses the key ethical rules in the realm of technology and data security. The second article, appearing in a later issue, will provide guidance as to the best practices with respect to securing and transferring client data and the necessary steps law firms must take to notify clients in the event of a data breach or loss of client information.
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02/03/2020
SFGH Partner Jack O'Connor named Vice Chair of 2020 TMA NextGen Global Committee
SFGH is proud to announce that Jack O’Connor, a partner in the firm’s Restructuring, Insolvency, Special Situations, & Corporate Distress Group has been named Vice Chair for the Turnaround Management Association’s Global NextGen Committee for 2020.
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09/24/2019
Brewbound Voices: Understanding Your Options in a Distressed Market — Alternatives to Filing for Bankruptcy
SFGH attorney Jack O’Connor recently authored an article for Brewbound, a leading beer industry trade publication, regarding alternatives to bankruptcy filings in a mature beer marketplace. The article, published in the “Brewbound Voices” column on the site, discusses specific strategies and alternatives for breweries in distress, citing recent examples of breweries opting not to file bankruptcy, and work to wind down their operations or otherwise continue their businesses by alternative means. The article provides an overview of asset sales, assignments for the benefit of creditors, receiverships, as well as other bankruptcy alternatives.
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08/27/2019
Jonathan Friedland and Hajar Jouglaf author article entitled “Bankruptcy Code Revised – A Review of the SBRA and Other Reforms”
Jonathan Friedland and Hajar Jouglaf authored an article reviewing the most recent changes made to the Bankruptcy Code. The article, entitled “Bankruptcy Code Revised – A Review of the SBRA and Other Reforms,” provides insight into key provisions of the Small Business Reorganization Act of 2019 (“SBRA”) and high-level overview of The Family Farmer Relief Act of 2019 (“FFRA”) and The Honoring American Veterans in Extreme Need Act of 2019 (the “HAVEN Act”).
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08/19/2019
Sugar Felsenthal Grais & Helsinger partner Jonathan Friedland quoted in article titled “How to Choose the Best Professional Associations to Join”
With many career benefits to joining a professional association and a nearly unlimited network of professionals to tap into, how do you choose which organization is the best fit for you? SFGH partner Jonathan Friedland was recently quoted in the article “How to Choose the Best Professional Associations to Join,” published in Point Road Group Insider.
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06/20/2019
SFGH partner Elizabeth “Lisa” Vandesteeg quoted in article titled “Litigation Funders Become the Litigants as Industry Grows”
Sugar Felsenthal Grais & Helsinger partner Lisa Vandesteeg was recently quoted in the American Lawyer Magazine for the article "Litigation Funders Become the Litigants as Industry Grows." In this article, Lisa Vandesteeg provided commentary on recent litigation over its permitted use.
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06/19/2019
Jonathan Friedland’s article entitled "Rise of the Alternatives" published in BankruptcyData's 2019 Bankruptcy Yearbook, Almanac & Directory
Sugar Felsenthal Grais & Helsinger partner Jonathan Friedland recently authored the article "Rise of the Alternatives" in BankruptcyData's 2019 Bankruptcy Yearbook, Almanac & Directory.
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05/23/2019
Sugar Felsenthal Grais & Helsinger partner Jonathan Friedland published in Private Directors Association May Newsletter – “What to Do When You're a Corporate Director of a Private Company Facing a Financial Crisis”
Sugar Felsenthal Grais & Helsinger partner Jonathan Friedland wrote an article for the Private Directors Association entitled “What to Do When You're a Corporate Director of a Private Company Facing a Financial Crisis.” In this article, Jonathan discusses the actions you should consider when a company whose board you sit on is facing an existential threat.
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04/10/2019
SFGH partner Michael A. Brandess published in Northern District of Illinois Bankruptcy Liaison Committee Newsletter
SFGH partner Michael A. Brandess was published in the Northern District of Illinois Bankruptcy Liaison Committee Newsletter for his article entitled "Bankruptcy Liaison Questionnaire."
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01/18/2018
On January 18, 2018, SFGH associate Jack O’Connor was quoted in an article published by Brewbound.
On January 18, 2018, SFGH associate Jack O’Connor was quoted in an article published by Brewbound, a beer industry publication, regarding the bank auction of Smuttynose Brewery, scheduled to take place in March 2018. Jack was cited for his experience as a corporate restructuring professional with a specific interest in, and knowledge of, the craft beverage industry.
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02/07/2017
S. Jason Teele, Jack O'Connor and Michael Brandess publish article entitled, "The Effectiveness of Creditors’ Committees in Chapter 11 May Be Under Attack" in DailyDAC
The Delaware Bankruptcy Court has ruled that Committee professional fees are not limited to the amount of the “carve-out” approved as part of a postpetition financing order.
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06/06/2016
Sugar Felsenthal Grais & Hammer LLP opens NYC office
On June 1, 2016 Sugar Felsenthal Grais & Hammer LLP (SFGH) announced the opening of its New York office
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09/15/2015
ABF Journal highlights Sugar Felsenthal Grais & Hammer LLP in article entitled, “Inside the Award-Winning AgFeed Industries Turnaround”
The October 2015 issue of the ABF Journal highlights Sugar Felsenthal Grais & Hammer LLP's role as co-counsel to the Official Committee of Equity Security Holders in In re AgFeed USA, LLC, et al. (Bankr. D. Del.).
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11/04/2014
Sugar Felsenthal Grais & Hammer LLP highlighted by Law 360 for successful confirmation of plan of liquidation in AgFeed USA, LLC (Bankr. D. Del.)
On November 4, 2014, Sugar Felsenthal Grais & Hammer LLP, as co-counsel to the Official Committee of Equity Security Holders, assisted the Debtors in confirming a plan of liquidation in AgFeed USA, LLC, et al. (Bankr. D. Del.).
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10/08/2013
Sugar Felsenthal Grais & Hammer LLP Among 2014's Top Ranked Law Firms by LexisNexis Martindale-Hubbell
Sugar Felsenthal Grais & Hammer LLP has been named one of 2014's Top Ranked Law Firms across the United States by LexisNexis®Martindale-Hubbell® .
- 04/10/2013
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10/01/2011
Universal Building Products: Has the Pendulum Swung Too Far?
This article by Michael A. Brandess, that first appeared inThe American Bankruptcy Institute Journal, discusses the implications of a recent decision by the U.S. Bankruptcy Court for the District of Delaware in In re Universal Building Products, Inc. in relation to the pre-bankruptcy solicitation of unsecured creditors' committees.
Speaking Engagements
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10/27/2020
Financial Poise/West LegalEdcenter webinar "Dealing with Defaults” features SFGH partner Christopher Horvay and associate Hajar Jouglaf
Financial Poise/West LegalEdcenter webinar "Dealing with Defaults” features SFGH partner Christopher Horvay and associate Hajar Jouglaf.
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10/26/2020
Jonathan Friedland to speak at NYIC & IFA Northeast/Southeast Joint Program
Jonathan Friedland to speak at NYIC & IFA Northeast/Southeast Joint Program.
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10/08/2020
SFGH partner Jonathan Friedland to feature on "Restructuring, Insolvency, & Troubled Companies 2020: Bad Debtor Owes Me Money!”
SFGH partner Jonathan Friedland to feature on "Restructuring, Insolvency, & Troubled Companies 2020: Bad Debtor Owes Me Money!”
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08/25/2020
SFGH Partner Jonathan Friedland and Associate Hajar Jouglaf Featured on NACM Webinar “The SBRA and Its Impact on Trade Creditors”
On August 5, 2020, SFGH partner Jonathan Friedland and associate Hajar Jouglaf spoke on a webinar hosted by the National Association of Credit Management (NACM) entitled “The SBRA and Its Impact on Trade Creditors.” The webinar focused on the consequence of the SBRA on creditors under the newly added Subchapter V of the Bankruptcy Code, including the elimination of the creditors committee. The panel examined, among others, provisions of the SBRA that provide creditors in all bankruptcy cases with major benefits through changes in preference laws, and tactics creditors could employ to manage receivables in these cases, and generally protect their rights in Subchapter V bankruptcy proceedings.
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06/29/2020
Jonathan Friedland and Michael Brandess to speak on NACM webinar entitled “Another Look: Serving on a Creditors’ Committee”
Jonathan Friedland and Michael Brandess to speak on NACM webinar entitled “Another Look: Serving on a Creditors’ Committee”
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05/20/2020
Jonathan Friedland and Michael Brandess to speak at June 23rd virtual symposium entitled “Opportunity Amidst Crisis”
On June 23, 2020, Sugar Felsenthal Grais & Helsinger LLP partners Jonathan Friedland and Michael Brandess will speak at a virtual symposium co-produced by Financial Poise, the Private Directors Association, the New York Institute of Credit, the Association of Insolvency and Restructuring Advisors, amongst others.
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05/11/2020
Michael Brandess to speak on NACM webinar entitled “Putting Yourself in a Defensive Posture When the Bankruptcy Notice Comes”
Michael Brandess to speak on NACM webinar entitled “Putting Yourself in a Defensive Posture When the Bankruptcy Notice Comes”
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05/06/2020
Jonathan Friedland offers insight on best practices for private equity investors looking to invest in distressed assets in “How to Buy Distressed Assets in Financial Restructurings”
On May 21, 2020, renowned corporate restructuring attorney, Jonathan Friedland, will join a panel of seasoned experts in a webinar discussion designed to teach the latest strategies for acquiring distressed assets, financing their purchase, and getting them on the road to recovery.
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04/02/2020
Lisa Vandesteeg to speak on TMA Panel on Market Impacts of COVID-19
On April 6, 2020, Lisa Vandesteeg will serve on a panel of industry experts who will discuss their observations regarding the market impacts of COVID-19. Lisa will provide insight into what further developments might come to fruition over the next few quarters.
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09/30/2014
Sugar Felsenthal Grais & Hammer LLP receives TMA Global’s prestigious Large Transaction of the Year
For its ground breaking work as lead counsel to the equity committee in In re AgFeed USA, LLC, et al. (Bankr. D. Del.), Sugar Felsenthal Grais & Hammer LLP received the TMA Global's prestigious Large Transaction of the Year.
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02/07/2013
Sugar Felsenthal Grais & Hammer LLP Selected as Counsel to Official Committee of Unsecured Creditors of Lyon Workspace Products, LLC, et al.
On February 7, 2013, the Official Committee of Unsecured Creditors of Lyon Workspace Products, LLC, et al. selected Sugar Felsenthal Grais & Hammer LLP as its legal counsel. Lyon Workspace Products, LLC and its seven affiliated debtors are the largest and leading manufacturer and supplier of top quality lockers, industrial storage and workspace products.
News
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02/17/2021
Sugar Felsenthal Grais & Helsinger LLP Attorneys Author Thomson Reuters© Lead Bankruptcy & Restructuring Treatises
Sugar Felsenthal Grais & Helsinger LLP ("Sugar Felsenthal") congratulates Jonathan Friedland, Michael Brandess, Christopher Cahill, Etahn Cohen, Hajar Jouglaf, Mark Melickian, and Jack O'Connor on the publication of the 2021 editions of Commercial Bankruptcy Litigation and Strategic Alternatives For And Against Distressed Businesses.
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02/03/2021
Michael Brandess Appointed President-Elect of Turnaround Management Association (Chicago/Midwest Chapter)
Michael Brandess will serve as 2021 President-Elect of the Turnaround Management Association (TMA) (Chicago / Midwest Chapter), and will serve as Chapter President in 2022. TMA has almost 10,000 members in 54 chapters worldwide, with the Chicago / Midwest being its largest chapter. Members come from a multitude of professional disciplines. TMA is considered one of the preeminent organizations in the corporate turnaround and restructuring space.
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07/21/2020
Sugar Felsenthal Grais & Helsinger LLP retained as lead counsel to Official Committee of Unsecured Creditors of Barfly Ventures, LLC, et al.
Sugar Felsenthal Grais & Helsinger LLP retained as lead counsel to Official Committee of Unsecured Creditors of Barfly Ventures, LLC, et al.
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Official Committee of Unsecured Creditors Quadrant 4 System Corporation, et al. (Bankr. N.D. Ill.). Quadrant 4 System Corporation and its subsidiary, Stratitude, Inc., was a publicly traded company engaged in the business of selling IT products and services to clients in the retail, manufacturing, financial services and healthcare industries. Our attorneys, currently representing the Committee, oversaw the sale of the Debtors’ business divisions as going concerns, increasing the likelihood of a distribution for unsecured creditors will ensuring the many of the debtors’ employees retained employment with the company, post-sale.
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Official Committee of Equity Security Holders of AgFeed Industries, Inc. (Bankr. D. Del.). AgFeed and its affiliates operated hog production and feed facilities in the United States and mainland China. In the wake of a Securities and Exchange Commission investigation into stock fraud that led to sanctions against the company and key officers and board members, the company filed bankruptcy and sold both its domestic and China-based assets in two transactions that resulted in 100% distribution to creditors and a distribution to the company’s defrauded shareholders. After representing the Equity Committee successfully through confirmation of a chapter 11 plan of distribution, SFGH represented the Liquidating Trustee of the AgFeed Liquidating Trust in trust administration and litigation against certain former officers and directors for fraud and other claims.
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Official Committee of Unsecured Creditors of Etcher Farms, Inc., et al. (Bankr. S.D. Iowa). Etcher Farms and affiliates operate a large family-owned dairy cattle concern in southern Iowa. SFGH has been retained by the Committee to work with the Debtors to pursue a restructuring transaction to bring value to the estates’ unsecured creditors.
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Official Committee of Unsecured Creditors of Natural Pork Production II, LLP (Bankr. S.D. Iowa). Natural Pork was one of the Midwest’s largest locally owned hog production operations in the Midwest, with both domestic and foreign operations. On behalf of the Debtors’ unsecured creditors, our attorneys collaborated with the Debtors and various other parties in interest to effectuate the successful liquidation of the company’s assets and the settlement of a capital structure dispute that resulted in a consensual plan of distribution resulting in a 90% distribution to the estates’ unsecured creditors.
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Official Committee of Unsecured Creditors of Lyon Workspace Products, LLC, et al. (Bankr. N.D. Ill.). Lyon Workspace Products, LLC and its seven affiliated debtors were the largest and leading manufacturer and supplier of top quality lockers, industrial storage and workspace products. As of the petition date, the debtors employed approximately 400 full-time employees and had net annual revenues in excess of $76 million. SFGH represented the creditor’s committee through the confirmation of a liquidating chapter 11 plan.
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Official Committee of Unsecured Creditors of Newton Manufacturing, Inc. (Bankr. S.D. Iowa). Our attorneys served as lead counsel to the Official Committee of Unsecured Creditors of Newton Manufacturing Company (Bankr. S.D. Iowa). Newton customized promotional products, such as writing instruments, golf balls, apparel and travel bags. On June 26, 2015, with the Committee's backing, the Bankruptcy Court for the Southern District of Iowa approved the sale of substantially all of Newton's non-real property assets to HALO Branded Solutions, Inc., one of the largest promotional products distributors in the U.S.
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Official Committee of Unsecured Creditors of Trainor Glass Company (Bankr. N.D. Ill.). Our attorneys currently represent the unsecured creditors of Trainor Glass Company, the third largest construction glass company in the U.S., in its chapter 11 case. In this engagement, SFGH worked closely with the debtor and its primary secured lender to negotiate a settlement of the secured lender’s undersecured claim under which the lender agreed to segregate assets previously covered by its security interest, and specifically dedicate the proceeds of those assets toward the satisfaction of unsecured claims.
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Official Committee of Unsecured Creditors of World Marketing Chicago LLC, and affiliates (Bankr. N.D. Ill). World Marketing was a large lettershop and commercial mail concern with operations in Chicago, Atlanta, and Dallas that served the public notice and healthcare industry, among others. Continuing pressurs on the direct mail industry and overleverage led World Marketing into bankruptcy in 2015. SFGH represented the creditor’s committee during the case through the confirmation of a liquidating chapter 11 plan.
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Official Committee of Unsecured Creditors of Duke & King Acquisition, Inc. (Bankr. D. Minn.). Prior to its bankruptcy filing, Duke and King was one of the largest operators of Burger King franchises in the Midwest, with almost one hundred stores located in Minnesota, Missouri, Illinois, Wisconsin, Iowa and Kansas. A SFGH attorney served on the team representing the creditors’ committee as it worked with the debtor, its senior secured lender and Burger King Corporation to effectuate a sale of substantially all of the debtor’s assets through a competitive bidding procedure under section 363 of the Bankruptcy Code.
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Official Committee of Unsecured Creditors of Wagstaff Minnesota Inc., et al. (Bankr. D. Minn.). Before its bankruptcy filing, Wagstaff was one of the largest operators of KFC franchises across the nation, with over twelve hundred employees and seventy-seven restaurants located in Minnesota, Alaska, California, Idaho and Texas. One of our attorneys served on the team representing the creditors’ committee as it worked with the debtors and the debtors’ secured lenders to effectuate a successful reorganization.
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Official Committee of Unsecured Creditors of RWJ Management Co., Inc., et al. (Bankr. N.D. Ill.). RWJ was a family owned business operating 10 high profile, BP-branded, motor fuel sales and mini-market facilities pursuant to agreements and licenses with BP Products North America. One of our attorneys served on the team representing the committee as it successfully negotiated key concessions from RWJ and its lenders for the benefit of unsecured creditors.
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Official Committee of Unsecured Creditors of Agri-Best Holdings, Inc. (Bankr. N.D. Ill.). Agri-Best was a leading Chicago-based processor and distributor of portion control meat products to national restaurant chains, food distributors and consumers with annual revenues of approximately $150 million. One of our attorneys served on the team representing the creditors’ committee as it worked with the debtors to effectuate a sale of the company and pursued litigation claims against the debtors’ pre-bankruptcy secured lenders.
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Official Committee of Unsecured Creditors of In re Arch Aluminum & Glass Co. (Bankr. S.D. Fla.). Our attorneys served as special litigation counsel to the creditors’ committee in the chapter 11 cases of Arch Aluminum & Glass Co., one of North America’s largest architectural glass and aluminum fabricators and distributors.
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Official Committee of Unsecured Creditors of Midcom Communications, Inc. (Bankr. E.D. Mich.). One of our attorneys served on the team that represented the official committee of unsecured creditors to Midcom Communications, Inc., a national reseller of telecommunication services with over 100,000 subscribers on the petition date, in a successful 363 sale of substantially all of the debtor’s assets, ultimately resulting in over a 40 percent distribution on allowed unsecured creditor claims.
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Official Committee of Unsecured Creditors of JS II, LLC (Bankr. N.D. Ill.). An SFGH attorney represented the unsecured creditors of Chicago land developers JS II, LLC and its affiliates, owner and builder of a high profile residential community and industrial sites in Chicago’s Bridgeport area, in its chapter 11 case.
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Official Committee of Unsecured Creditors of Golden Bear Oil Specialties, Inc. (Bankr. C.D. Cal.). An SFGH attorney represented the unsecured creditors committee of Golden Bear Oil Specialties, Inc., a California-based manufacturer of specialized petroleum products, in its chapter 11 case, and negotiated concessions with the company's secured lender that ultimately resulted in a distribution to unsecured creditors from the proceeds of a section 363 sale of the company's assets although the bank was not paid in full.
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Official Committee of Unsecured Creditors of Builders Plumbing & Heating Supply Co. (Bankr. N.D. Ill.). A SFGH attorney represented the unsecured creditors of Builders Plumbing and Supply Co., a well-known Chicago-based distributor of plumbing and building supplies, in its chapter 11 case.
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Official Committee of Unsecured Creditors of Telehub Communication Corporation (Bankr. N.D. Ill.). A SFGH attorney represented the unsecured creditors of Telehub Communication and its affiliates, an Illinois-based competitive local exchange provider of telecommunication services to businesses and residences, in its chapter 11 case.