- Formed through the roll-up of smaller regional companies, the company offered IT consulting services for large clients as internet start-ups on an international basis.
- Debtor’s attorney and Creditors’ Committee attorneys had battled throughout the contentious Chapter 11 case, and as part of the Liquidating Plan, both sides agreed to bring in a Special Litigation Trustee who both parties trusted and who was viewed as totally independent to handle litigation as it pertained to their constituencies.
- Hired to evaluate specific potential claims and causes of actions (lawsuits) that may have significant value to the debtor’s estate. On the debtor side, the issues involved Director and Officer (D&O) liabilities, preference recovery and excess payments to Officers. On the Committee side, the issues involved preference recovery and claims resolution.
- After business, accounting and legal investigation, we filed lawsuits, through our attorneys against the D&O’s, one ex-Officer for a multi-million dollar preference and for repayment of excessive executive compensation as well as against two Committee members for smaller preferences.
- Additionally, we objected to the size of certain claims filed by Committee members.
- Generated significant D&O claim and other recoveries through pre-trial negotiation.
- Reduced claims by multi-million dollar thru negotiation.
- Estate paid all general unsecured Creditors 100% including interest.
- Had over $500,000 funds in excess of all claims left in the estate which was given to charity as equity had been extinguished in Liquidation Plan confirmation.