Case Studies

Liquidating Trustee of $400M Public Wine Company Bankruptcy Estate

J.S. Held Acquires Clark Seif Clark, Strengthening West Coast Capabilities for Environmental Claims, Disputes, and Catastrophe Response

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Home·Liquidating Trustee of $400M Public Wine Company Bankruptcy Estate

The Situation

Our team was appointed Liquidation Trustee of a $400M publicly traded wine conglomerate following its Chapter 11 bankruptcy. The company, ranked among the top 10 producers in the United States with a portfolio of over 30 wine and spirit brands, faced over $3.8B in claims and had significant assets remaining to be recovered. Liquidating the complex operations required winding down numerous sales agreements and alcohol licenses across the nation.

How We Advised

Upon being appointed by mutual agreement between the debtors and claim holders to serve as Liquidation Trustee, we swiftly assessed the estate’s remaining assets and tasks to ensure an orderly wind-down while maximizing creditor recovery. Our key actions included:

  • Maximizing Receivables Recovery: Proactively identifying outstanding accounts receivable, issuing demand letters to nonresponsive customers, and negotiating payment terms to secure full or partial collections exceeding $2M.
  • Unlocking Hidden Value: Discovering additional recovery opportunities beyond receivables—such as canceling business licenses, liquor licenses, insurance policies, and bonds—to improve stakeholders’ returns.
  • Controlling Costs: Negotiating rates and fee caps with third-party service providers to ensure budget adherence and minimize overages within the court-approved framework.
  • Streamlining Disbursements: Facilitating timely payments to administrative claimants while verifying that invoiced amounts qualified as administrative claims.
  • Managing Transition Services to Maximize Recoveries: Administering Transition Service Agreements (TSAs) through termination, ensuring reliable, reimbursable services were delivered as parties migrated to new providers, and guaranteeing the trust was fully reimbursed for all transitional costs by tracking, invoicing, and collecting TSA-related reimbursable expenses with precision.
  • Winding Down Operations: Facilitating the complex process of terminating the debtor’s sales agreement obligations and optimizing recovery of reimbursable expenses by identifying pivotal contacts and sending effective demand letters.
  • Optimizing Claims Resolution: Reviewing secured, priority, administrative, and unsecured claims to approve, reject, and disburse recoveries with accuracy and transparency, and diligently following up to submit formal objections and negotiate claim amounts as permitted to maximize recovery for all creditors.

Key Contacts

David Stapleton, CPA, CLPF 
Senior Managing Director 
Strategic Advisory Practice 
+1 213 235 0601 
[email protected] 

 

Jake Diiorio, CTP 
Managing Director 
Strategic Advisory Practice 
+1 213 235 0609 
[email protected] 

 

Betsy Landoll
Director
Strategic Advisory Practice
+1 512 704 6686
[email protected]

 

Maxwell Brandon
Associate Director
Strategic Advisory Practice
+1 858 855 1737
[email protected]

Related Practice Areas

> Fiduciary Services
We deliver unbiased, expert solutions in court-mandated and out-of-court situations that demand a third-party fiduciary, including insolvency, fraud, litigation, and shareholder disputes. When companies are in financial distress, become entrenched in complex disputes, or fraud is suspected, lenders, attorneys, and regulatory agencies recommend that federal and state courts or boards of directors appoint our experts as fiduciaries.

 

> Turnaround and Restructuring Services 
Navigating the many challenges confronting a company in transition requires an operationally focused approach that looks beyond the balance sheet to minimize further degradation and build a path to sustainable growth. Drawing upon decades of experience in the turnaround space, we help companies in transition identify practical strategies to improve profitability and liquidity for immediate relief, while concurrently developing and executing a comprehensive turnaround plan for long-term, sustainable value creation. 

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