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ISG ANNOUNCES AUCTION OF ASSETS OF SUBSCRIPTION BASED WOMAN’S ACTIVEWEAR BRAND 1. LOI Deadline. December 21st, 2020 at 3:00 pm Pacific Time. 2. Background. Company is a four-year-old subscription-based service in the women’s activewear space. Extensive exclusive technology has been built to service over 80K customers in that time. More than 1MM pieces of activewear have been curated for past and present customers. This curation is accomplished using a machine-learning algorithm. The Company is currently operational with over 15K active members billing on a monthly, semi-monthly and quarterly basis. The Company’s social following includes over 140K followers on Facebook and 70K followers on Instagram. Company has generated over $28MM since inception and is on pace for over $5MM in 2020. Company projects to be EBITA positive for the year. Company anticipates making a General Assignment for the benefit of its creditors in favor of Insolvency Services Group, Inc. prior to the LOI Deadline. […]
How Liquidity Becomes the Kryptonite of a Distressed Company’s Capital Structure A company’s “capital structure” is the array of its liabilities and equity. It is often described by the debt to equity ratio, which is the amount of total debt divided by total equity. Capital structure commonly consists of three main components: working capital (also known as operating debt), financing debt, and equity. Working capital, or operating debt, includes accounts payable, accrued expenses, and other current liabilities usually due within one year. Financing debt includes senior bank financing, leases, and […]
What Happens When Your Consignee Becomes Distressed and What You Can Do I was speaking with a client yesterday about consignment arrangements. What we discussed should be of interest to any company that sells goods using a consignment arrangement, and I thought I would share. What is a Consignment Arrangement? In a consignment arrangement, the consignor, as owner of the goods, delivers them to a consignee. The consignee, in turn, will try to sell those goods to customers. Be Careful Not to Mischaracterize the Proceeds You Expect from a Consignment […]
The Robbins Company (“Robbins”) is one of the world’s foremost providers of advanced, underground construction equipment and services, including Tunnel Boring Machines (TBMs) and related equipment such as conveyors and cutters. Robbins’ TBMs and cutters have excavated more hard rock than all of Robbins’ competitors combined. Robbins has built its reputation for nearly 70 years, developing a global brand with rep agreements or subsidiaries in 27 countries, historically generating approximately 90% of revenues outside of the United States. It is believed that Robbins’ EBITDA will average at approximately $3 million per year over the next four years. Robbins was placed in receivership in the Cuyahoga County Court of Common Pleas (Case No. CV-19-921031) (the “Court”) in October 2019. The receivership action was initiated by Lok Home, the President, a large creditor, and a minority shareholder of Robbins, as part of an overall effort to improve Robbins’ liquidity, address corporate governance […]
B. RILEY ANNOUNCES AUCTION OF ASSETS OF RIDGEMONT OUTFITTERS, INC. 1. Offer Deadline. December 1st, 2020 at 5:00 pm Pacific Time. 2. NDA Deadline. November 10th, 2020. 3. Background. Ridgemont Outfitters was created to fill a void in the footwear market – the space between casual footwear and hiking boots. It’s offerings strike the perfect balance between shoes rugged enough for scaling the highest peaks and footwear that maintains a stylish look in an urban setting. Ridgemont’s footwear features it all without sacrificing style, comfort, or grip. Ridgemont boasts a variety of footwear in its collection including Heritage, Outback, Monty, and Hiking Boots. Ridgemont is the subject of an assignment for the benefit of creditors. 4. Process Overview. The prospective Assignee will provide a form asset purchase agreement (“APA”) to interested parties who have executed a non-disclosure Agreement (“NDA”) by the NDA Deadline. Letters of Intent in the form of […]
Facing Personal Liability for Business Debts? Who Ya’ Gonna Call?1 People who are not bankruptcy experts but who know something about the subject tend to put all bankruptcy attorneys into one of two buckets: (a) attorneys who help people file bankruptcy; and (b) attorneys who help businesses file bankruptcy. This distinction is mostly correct. Generally speaking, there are two types of people who file bankruptcy: (a) people who incurred debt for personal or household purposes, which are “most people;” and (b) people whose debt derives from some form of business […]
The Battle Over Post-Petition Interest for Oversecured Creditors In bankruptcy, an oversecured creditor (in which the value of its collateral is higher than its claim) is first in line to be paid. Unfortunately, oversecured creditors are also entitled to post-petition interest (interest that accrues or would accrue after the start of bankruptcy proceedings, regardless of whether or not it is allowed in the proceeding). As a debtor who successfully increases the value of the asset/collateral—how do you alleviate an increased claim and maintain liquidity? And what say does the secured […]
Examining the TOUSA Case Ruling on Fraudulent Transfers One of the most powerful tools in the Bankruptcy Code available to bankruptcy trustees (or other estate representatives) to maximize the recovery of creditors is the power to avoid and recover fraudulent transfers of a debtor’s property. These include transfers that are made, or obligations that are incurred, by a debtor: “With the actual intent to hinder, delay or defraud creditors (§ 548(a)(1)(A)); or Constructively fraudulent transfers, i.e., transfers made or obligations incurred for which the debtor receives less than reasonably equivalent […]
Auction Advisors to auction the Intellectual Property, Inventory & Other Assets of Innovative Luggage Manufacturer “Travel Light” d/b/a “G-RO” in an ABC. In RE: Assignment for the Benefit of Creditors of Travel Light, Inc. in the Court of Chancery for the State of Delaware, commencing case number 2020-0429-PAF. Qualifying Bids and Deposits Due November 4, 2020 @ 1PM; Auction to be held November 5, 2020. Background: Travel Light was a designer, manufacturer and distributor of unique luggage and other travel accessories operating primarily under the brand name G-RO. The company had a celebrity following and served many of the fastest growing national retailers and brands. It peaked at sales of almost $5M when it implemented a successful Kickstarter campaign. See: https://www.kickstarter.com/discover/advanced?ref=nav_search&term=g-ro. Opportunity Overview: On June 3, 2020, Travel Light assigned all of its assets of every kind and nature whatsoever to a court approved Assignee in an Assignment for the […]
TRUSTEE/ASSIGNEE AUCTION OF THE ASSETS OF M-WAVE INTERNATIONAL, LLC AND M-WAVE MUSIC PRODUCTS, LLC Sale of Property: On October 23, 2020 at 10:00 a.m. at the offices of Commercial Recovery Associates, LLC, located at 205 West Wacker Drive, Suite 918, Chicago, IL 60606, Robert Handler (the “Trustee/Assignee”), not in his individual capacity but solely as the Trustee/Assignee for the Benefit of Creditors of M-Wave International, LLC (“M-Wave”) and M-Wave Music Products, LLC (“Music”) (together, the “Companies”), anticipates conducting an auction sale (the “Auction”) of the Companies’ tangible and intangible assets, consisting primarily of inventory, accounts receivable, property plant and equipment, office furniture and equipment, customer information and marketing materials and brochures (“Sale Assets”), a list of which the Trustee/Assignee will make available to potential bidders. Stalking Horse Offer: The Trustee/Assignee and a prospective purchaser (the “Initial Bidder”) have entered into an Asset Purchase Agreement for the Sale Assets (the “APA”), […]