Bankruptcy Services Increase Payout to Creditors

Client Profile

Annual Revenue: $65 million
Industry: Retail
Entity Type: Private
Footprint: National

CBIZ assists with Chapter 11 proceedings.Issue

A mattress retailer failed to meet obligations as due. As such, three petitioning creditors filed the company into an involuntary bankruptcy. The case subsequently converted to a debtor-in-possession Chapter 11 filing. With its significant cash burn, the retailer had a tight timetable to sell its assets and confirm a plan of liquidation.

Solution

Our corporate recovery team assisted the retailer’s unsecured creditors committee throughout the Chapter 11 proceedings. We identified and recovered off-balance sheet assets and helped coordinate the sale of the company’s assets. For the asset sale, we ensured transparency in the process and equal access for all interested buyers to perform their due diligence. Our team also determined the “highest and best” offer. In addition, we identified and quantified the franchise rejection claims for purposes of comparing bid values.

We identified and quantified avoidance actions for the recovery of funds available for distribution to creditors. We also performed a claims analysis to assist counsel with claims rejections. Lastly, we performed a fiduciary role post-confirmation to assist in the wind down of the estate.

Outcome

Through our involvement, the retailer’s stalking horse bid increased from $2.5 million to $25 million, and general unsecured creditors received 70 percent returns at a time when furniture and bedding cases were returning less than 10 percent. CBIZ contributed to a very efficient process with a case that was confirmed in eight months, and the wind down of the company that was effectuated in less than a year.

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CBIZ MHM is the brand name for CBIZ MHM, LLC, a national professional services company providing tax, financial advisory and consulting services to individuals, tax-exempt organizations and a wide range of publicly-traded and privately-held companies. CBIZ MHM, LLC is a fully owned subsidiary of CBIZ, Inc. (NYSE: CBZ).

Bankruptcy Services Increase Payout to CreditorsCBIZ helped a mattress retailer through Chapter 11 proceedings....2016-10-24T13:49:00-05:00

CBIZ helped a mattress retailer through Chapter 11 proceedings.

Risk MitigationCorporate Recovery Services