Liquidating Trustee
Consulting to determine the best course of action and the feasibility and probability of a successful filing for Chapter 11 Reorganization or an out-of-court workout.
Pre filing
- Identify the core business
- Compute the liquidation value to creditors under Chapter 7
- Develop a strategy to change to a new structure
Post filing
- Prepare schedules and statements of financial affairs
- Calculate reclamation claims, preference exposure, and reconcile creditor’s proof of claims to debtor’s scheduled amounts
- Prepare monthly reports for US Trustee’s office
- Serve as Liquidating Trustee
The Cincinnati Cordage and Paper Company – This company had annual sales of $160MM and 10 branch locations of which two were warehouse buildings owned. The subsequent liquidation include collection Receivables and selling off the remaining inventory at a public auction in order to pay off the $18MM due to CIT, the secured creditor. There were over 560+ claims filed including 15 reclamation claims for $2MM, and 8 lease rejection claims. The Estate filed over 50 preference actions and 36 adversary proceedings for nonpayment of Receivables. All assets were sold and the estimate of the payout to the unsecured creditors was close to $2.9MM or approximately 15% of the unsecured debt.
Cincinnati Microwave, Inc. – At the time of filing this company had annual sales of $50MM and over 1,000 employees. There were over 1,100 claims filed and one of the assets of the estate was a patent infringement suit which was lost on appeal. The preference actions alone returned $1MM back to the estate. Ultimately the unsecured creditors, which included employees not only for their back wages but also their vacation and severance, received over $5MM, or approximately 35% of their claims. Appointed President of this publicly traded OEM in liquidating Chapter 11, and then appointed Liquidating Trustee by Court upon approval of plan. Administered estate through complex patent infringement suit and claims reconciliation process until eventual liquidation and post filing support.