Situation
A customer of our client, a national beef distributor, filed for Chapter 11 bankruptcy and sought to sell its assets solely for the benefit of the customer’s bank. Our client was threatened with litigation to recover millions received during the 90 days before bankruptcy. We assisted the client in the formation and recognition of the first-ever 503(b)(9) creditors’ committee who joined the motion to dismiss the overall Chapter 11 case.
Result
The Chapter 11 case was dismissed, saving our client from litigation regarding more than $44 million in payments the customer made to our client within 90 days of its bankruptcy.