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Represented the Official Committee of Unsecured Creditors of Vital Pharmaceuticals. Lowenstein investigated potential estate causes of action which involved contentious discovery disputes, significant motion practice, conducting a dozen interviews and depositions, and reviewing over 20,000 documents. Following Vital’s sale, we continued to represent the Liquidating Trust and filed a 32-count complaint against the company’s former CEO, his friends and family members, and their network of entities. In addition, we now represent the Liquidating Trust in over thirty pre-petition litigations (both affirmative and defensive) which the Trust took over from the Debtors. We are also defending two appeals on behalf of the Liquidating Trust concerning the former CEO’s failed attempts to change the Debtors’ tax status on the eve of the sale’s closing, which would have imposed a significant tax liability on the Debtors.
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Representing the Official Committee of Tort Claimant Creditors of the Diocese of Camden, New Jersey. Lowenstein negotiated a settlement with the Diocese and its affiliated parishes of $87.5 million for survivors of sexual abuse. We also opposed a 9019 motion that sought settlement of all of the insurers’ obligations for only $30 million. Lowenstein conducted months of discovery in opposition to the 9019 and in support of the Plan, including twenty-two fact and expert witness depositions. We conducted a confirmation hearing that spanned two months and included the testimony of fourteen witnesses, against the Diocese’s insurers, who sought approval of the 9019 motion and opposed confirmation of the Plan. The Court denied the 9019 motion.
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Representing the Official Committee of Unsecured Creditors of Proterra Inc. Lowenstein investigated potential breach of fiduciary claims relating to the Debtor’s pre-petition activities and negotiated the resolution of the second lien noteholders’ liquidation premium claim at only 3% of the amount sought by the noteholders.
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Represented the Official Committee of Unsecured Creditors of Benefytt Technologies, Inc. Lowenstein investigated the pre-petition conduct of the Debtor’s directors and officers, equity sponsor, and term lenders, including with relation to matters settled with the SEC and FTC and multiple pending consumer actions. Lowenstein used the results of the investigation to negotiate the creation and funding of a GUC trust to which litigation claims against certain of the Debtors’ former directors and officers were contributed.
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Representing the Official Committee of Unsecured Creditors of the Roman Catholic Bishop of Oakland. Lowenstein has conducted months of discovery to determine the Debtors’ assets and ability to pay survivors of sexual abuse, as well as an investigation into the Debtors’ insurance assets to compensate survivors.
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Represented Debtor Aceto Corporation and its affiliated companies. Aceto successfully sold its global chemicals business assets and Rising’s pharmaceutical assets in Section 363 sales for an aggregate value of about $548 million. This representation involved coordination among various Lowenstein practice groups, as well as seamless integration with foreign counsel, as the client operated in more than 15 non-U.S. jurisdictions.
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Represented the Official Committee of Unsecured Creditors of Exide Holdings, Inc. Lowenstein investigated potential causes of action for fraudulent conveyances and preference avoidance, which included interviewing over a dozen witnesses and reviewing over 10,000 documents. Based on its findings, the Committee negotiated a global settlement that included $2.4 million for unsecured creditors.
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Represented the Official Committee of Unsecured Creditors of Century 21 Department Stores. Lowenstein investigated potential estate causes of action relating to the company’s family owners and their network of entities. Based on its investigative findings, the Committee negotiated a global settlement that included $59 million for the estate.
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Represented the Official Committee of Unsecured Creditors of GNC Holdings, Inc. We investigated potential estate causes of action and negotiated a consensual Plan of Reorganization, including the sale of the GNC business as a going concern, resulting in significantly increased recovery for unsecured creditors.
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Represented the Official Committee of Unsecured Creditors of Cenveo Inc. The Committee’s investigation culminated in a publicly filed report regarding potential claims against Cenveo’s insiders, including for fraudulent conveyance and breach of fiduciary duty claims relating to KEIP and KERP payments. As a result, the parties entered a global settlement that tripled the cash pool for unsecured creditors from $1.5 million to $7 million.
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Represented the Public Employees Retirement Association of New Mexico in the chapter 11 case of Pacific Gas and Electronic Company (PG&E), the court-appointed lead plaintiff in a securities class action against PG&E’s officers and directors. We prevented the litigation from being enjoined and defeated a standing motion seeking to usurp the claims filed by the committee representing the victims of the 2017 and 2018 Northern California wildfires. We also participated in the heavily contested confirmation hearing that spanned approximately two weeks.
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Represented the Official Committee of Unsecured Creditors of Yueting (YT) Jia, a Chinese tech mogul and entrepreneur. Our international investigation focused on potential fraudulent transfers by unwinding a vast network of shell companies and intricate financial transactions. We obtained significant concessions from the Debtor in his proposed plan of reorganization, which the Committee supported. Lowenstein also participated in adversary proceedings instituted by stand-alone creditors seeking to derail the reorganization.
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Represented the Official Committee of Unsecured Creditors of SportCo Holdings, Inc. Lowenstein investigated potential claims held by the Debtors’ estates and ensured the establishment of a litigation trust for the benefit of creditors to allow the Committee to pursue claims against the Debtor’s sole shareholder, a private equity firm. The Committee represented the trustee for the litigation trust in prosecuting claims for breach of fiduciary duty, fraudulent transfer, and corporate waste.
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Represented the Official Committee of Unsecured Creditors of Mission Coal Company, LLC, a Tennessee coal mining company. We led a three-month Rule 2004 investigation and filed a motion seeking standing to prosecute a 52-count complaint, which included claims for avoidance of fraudulent transfers, recharacterization of debt as equity, equitable subordination, and corporate waste. Following a contested confirmation trial, the parties resolved all outstanding issues for total consideration of approximately $29 million for the estate.
