CHICAGO--(BUSINESS WIRE)--Levenfeld Pearlstein’s bankruptcy group has proven that Chapter 11 matters can be resolved quickly and efficiently for both secured and unsecured creditors.
Hartford Computer Inc. filed for bankruptcy protection last December so it could sell its assets. Less than a year later, a judge last week approved a joint liquidation plan formulated by the company and its creditors, said LP partner Jonathan Friedland, lead counsel for the committee of unsecured creditors.
Under federal bankruptcy law, the $35 million in cash proceeds from the April sale would go to Hartford Computer’s senior secured creditor, hedge fund Delaware Street Capital unless Delaware Street agreed to carve out a recovery for unsecured creditors, or unless unsecured creditors could prove why Delaware Street’s liens should be invalidated or its claims subordinated.
LP conducted an investigation of Delaware Street Capital on behalf of unsecured creditors. The investigation laid the groundwork for negotiations that led to the hedge fund striking a deal to net unsecured creditors up to 50 cents on the dollar.
Peter Kravitz, chairman of the unsecured creditors Committee, who helped negotiate the deal, said Friedland “ran a diligent investigation, balanced competing interests flawlessly, and got a contested plan confirmed that really works for unsecured creditors.”
The Debtor was represented in the case by KMZ Rosenman; Delaware Street was represented by Jenner & Block; and certain shareholders were represented by Winston & Strawn. Each of these firms showed the “utmost professionalism in the case,” according to Friedland.
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