Provided valuation and sale feasibility testimony that resulted in removing state court Receiver. Then conducted a 363 sale that resulted in ending shareholder dispute, all creditors paid in full, and a return to equity.
Debtor entered Chapter 11 after a partner dispute resulted in counter-claims. Receiver was placed by California state court. Working in conjunction with counsel, Chapter 11 was filed and Receivership was terminated. As a Debtor in Possession, Force 10 team members provided valuation testimony to support opposition to the proposed low-valuation transaction, arguing that more proceeds could be obtained through an auction. The Bankruptcy Court agreed and Force 10 team members (while at different firms) ran an auction and separately acted as transaction manager in a fiduciary role. The end result was a sale approximately 60% greater than the initial proposed transaction supported by the Receiver, full payment of all creditors, and a return of capital to equity.