Tech start-up emerges from bankruptcy with millions in equity infusion
An undercapitalized technology start-up company retained Barnett & Rubin to file a chapter 11. We brought in a securities consultant and confirmed a Chapter 11 plan. The plan provided for the issuance of free trading securities under an applicable bankruptcy code exemption. The company successfully emerged from bankruptcy with a subsequent infusion of millions of investor dollars and the ability to beneficially redesign its product and become an actively traded public company.
Creative approach to continue operations and pay creditors
An agricultural related company on the verge of a foreclosure of its primary processing facility retained Barnett & Rubin for assistance. Our attorneys filed a Chapter 11 proceeding, negotiated a sale of the facility and, there being no environmentally compliant replacement facilities available, negotiated an arrangement with one of the client’s hostile creditors to joint venture certain operations at the creditor’s facility. These actions allowed the client to pay its creditors, dismiss it’s bankruptcy and avoid further legal and administrative costs. The client continues successful operations to the present day.
Private securities solution helps all parties
A failing East Coast horse track engaged Barnett & Rubin to file a Chapter 11 proceeding. That case resulted in creditors accepting free trading securities of the debtor in satisfaction of their debt, pursuant to a bankruptcy code exemption. A market developed for the securities and the debtor successfully emerged building a successful operation and allowing creditors to benefit from a sale of the securities.
Adept handling of case results in ongoing operations
A troubled electronics manufacturer retained Barnett & Rubin to file a Chapter 11 proceeding. The firm negotiated a consensual plan which was summarily accepted by creditors. Upon confirmation of the plan it become clear that various government contracting customers were constrained in their business dealings with the client because of the bankruptcy. To address that issue, our attorneys negotiated for an immediate closing of the case with the concurrence of the creditors committee –as a result, the client continues successful operations. The firm also successfully reorganized the primary shareholder of another company in the same industry.
Creditor negotiations allow public works contractor to stay in business
Barnett & Rubin filed a chapter 11 for a troubled public works contractor. The filing resulted in complications with its performance Bond and thus it’s ability to operate. In response the firm negotiated a settlement with the client’s primary creditor (the creditor that triggered the bankruptcy filing ) and arranged for a dismissal of the case over the initial objection of the court. The firm has subsequently had multiple client referrals from counsel for the creditor.
Barnett & Rubin handled the Waterbed Gallery bankruptcy proceeding many years ago and we have filed numerous Chapter 11 proceedings since that time, most recently successfully reorganizing a small grocery chain. Most of the cases have involved the firm working closely with creditors and committees to effectuate consensual plans and avoid litigation costs which can often be fatal to client’s businesses. The firm strives to avoid bankruptcy proceedings and work out compromises with creditors wherever possible. The firm also seeks to be creative where necessary to effectuate resolutions.
The firm has also filed hundreds of chapter 7 proceedings and assisted many individuals in eliminating contract and tax obligations.