A $700M publicly traded print and marketing company with 3,500 employees filed for Chapter 11 bankruptcy protection. Several months after filing, the Company sold most of its operating assets to a competitor for $300 million.
Challenge:
In connection with the asset sale, the acquirer hired all of the company’s employees. The Company needed a new Chief Restructuring Officer to oversee the orderly wind-down of the Estate, including:
- Over 2,500 claims filed against the Estate
- Numerous office leases throughout the U.S. with furniture and equipment on-site
- Several large facilities with potential environmental issues
- The Company needed a Plan of Liquidation
- Oversight of professionals and management of cash receipts and disbursements
- On-going financial reporting to bankruptcy court and other stakeholders
- Potential preference actions
- Final federal and state tax returns needed to be completed and filed
Solution:
- WilliamsMarston was appointed Chief Restructuring Officer (CRO) by the Estate’s Board of Directors.
- As CRO, WilliamsMarston managed cash on-hand including all cash receipts and disbursements in the ordinary course. Prepared cash flow projections and monthly operating reports.
- Reviewed office leases to determine which should be assumed or rejected and managed the sale or disposal of numerous assets.
- Negotiated with secured lenders to facilitate a final settlement.
- Reviewed and reconciled over 2,500 claims and facilitated objections to numerous invalid claims
- Prepared Plan of Liquidation and successfully facilitated its confirmation by the Bankruptcy court.
- Oversaw the preparation and filing of final federal and state tax returns.
Result:
Upon confirming the Plan of Liquidation with the Bankruptcy court, WilliamsMarston was retained by the unsecured creditors committee to support the remaining efforts to wind-down the Company’s affairs culminating in a favorable distribution to the general unsecured creditors.