Case Studies

Estate Closedown Pays All Creditors 100%

J.S. Held Acquires Clark Seif Clark, Strengthening West Coast Capabilities for Environmental Claims, Disputes, and Catastrophe Response

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Home·Estate Closedown Pays All Creditors 100%

The Situation

Medical diagnostics testing company. No sales and no debt.

  • The slow acceptance of the cancer testing product resulted in significant negative cash flow.
  • The company sued its marketing partner and agreed to arbitration over a breach of contract to conduct best efforts marketing.
  • Over $16 million was spent on the arbitration pursuit, which rendered the company insolvent when it lost the case.

How We Advised

Our experts were engaged as Liquidating Trustee following the company's bankruptcy and the completion of a 363 sale.

  • Upon bankruptcy, the company was sold for approximately $34 million in a 363 sale.
  • Proceeds available for distribution by the liquidating trustee.
  • Approximately 130 claims for $32 million were reviewed.
  • Successfully challenged 25 claims (or 19%) totaling over $1.6 million.
  • Additional proceeds are sought through the pursuit of the D&O lawsuit.
  • Four-month investigation of books, records, email files, and thousands of documents.
  • All secured creditors were paid in full shortly after the closing of the 363 sale.
  • All unsecured creditors paid in full within 120 days post-363 sale.
  • The liquidating trustee returned over $2 million to shareholders within one year after filing for bankruptcy.

Key Contact

Dan F. Dooley, CTP 
Senior Managing Director 
Strategic Advisory Practice 
+1 603 660 8952 
[email protected] 

Related Practice Areas

> Fiduciary Services 
We deliver unbiased, expert solutions in court-mandated and out-of-court situations that demand a third-party fiduciary, including insolvency, fraud, litigation, and shareholder disputes. When companies are in financial distress, become entrenched in complex disputes, or fraud is suspected, lenders, attorneys, and regulatory agencies recommend that federal and state courts or boards of directors appoint our experts as fiduciaries. 

 

> Bankruptcy Advisory 
Navigating bankruptcy is inherently complex, often involving struggling businesses, litigation, incomplete or inaccurate financial records, potential fraud, and other challenges, in addition to strict court-mandated processes. Our experienced team of turnaround and restructuring experts seamlessly guides clients throughout the process to optimize outcomes for lenders, creditors, shareholders, and employees. 

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