Litigation Support

Organization

    Representing the Director of Insurance for the State of Illinois

Challenges

  • A liquidity crises surfaced as insurance premiums written declined while claim losses kept rising.
  • The value of investments in affiliated companies’ bonds and securities had declined in value from $75 million to $20 million.
  • Fraud was alleged.

Approach

  • Investigated and summarized the numerous transactions among affiliated companies of the three failed sub-prime auto insurance companies.

Results

  • The Office of the Special Deputy Receiver placed the three insurance companies in receivership to be liquidated.
  • The investigation and findings have been used in the fraudulent conveyance and the directors’ and officers’ litigation, as well as settlement discussions with the independent auditors.

Organization

    $66 Million Steel Galvanizing Facility

Challenges

  • Chapter 11 filing of National Steel triggered buyout of NKK from its JV interest in Galvatek by Defasco
  • Buyout required a going concern market valuation of closely-held Galvatek

Approach

  • Valuation estimates were prepared for three scenarios and probability-weighted according to likely outcomes
  • Provided findings and conclusions in an expert type report
  • Submitted valuation report for the review of the Official Unsecured Creditors Committee of National Steel

Results

  • BBK’s valuation held up under intense scrutiny of the Unsecured Creditors
  • With support from Creditors, the Bankruptcy Court approved the valuation and the buyout
  • Galvatek’s JV partners were able to efficiently and effectively restructure Galvatek’s ownership

Organization

    $9 Million Food Processor

Challenges

  • BBK’s client, doubted that the Company’s proposed Plan of Reorganization was feasible.
  • The Company was in Chapter 11 and had a long history of losses.
  • Uncertainty existed regarding the extent to which demand would be sustained beyond “end-of-millennium panic” buying.

Approach

  • On short notice, performed an operational and financial assessment of the Company.
  • Prepared market research to assess the extent of demand for the Company’s products.
  • Prepared an expert witness report.
  • Provided deposition and court room testimony.

Results

  • BBK concluded that the Company’s Plan of Reorganization was not feasible.
  • Bankruptcy Court ruled in favor of BBK’s client.
  • The Company was not permitted to publish its Plan.
  • The Company was required to pay BBK’s client adequate protection.
  • BBK’s client recovered 100% of its loan.

Litigation Support Professionals

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