Chapter 7 Representation of Trustee
A converted Chapter 11 case for two debtors who between them employed several hundred employees. The largest secured creditor was owed approximately $30 million. This representation involved a number of complex matters. For example, immediately it was necessary to terminate a self-funded health plan and oversee the unwinding of that health plan. In addition, Verrill is in the process of coordinating the termination of two 401(k) profit sharing plans. Counsel also negotiated an agreement with the largest secured creditor to allow the Trustee to conduct asset sales of the tangible assets of both Debtors. Counsel is now coordinating the collection of accounts receivable. In addition, a seven-figure dispute with an insider relating to the perfection of its claimed consignment interest in inventory of one of the Debtors is now the subject of a pending adversary proceeding. Numerous employee claims are in the process of being evaluated and addressed arising from the Debtors' decision to terminate virtually all of their employees prior to conversion of the cases. Verrill is also evaluating a number of claims against insiders, and it is anticipated that claims arising under Delaware law will be pursued.
In representing the Trustee in this matter, Verrill sought the assistance of attorneys in the Employee Benefits & Executive Compensation Group relating to what has been described by the administrator for the 401(k) profit sharing plans as the largest plan termination matter being handled by her company right now.
The work for the Trustee in the Wood Structures case is ongoing and will not be completed for some time.