Case Studies

Trustee for IT Consulting Company

J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida

Read More close Created with Sketch.
Home·Trustee for IT Consulting Company

The Situation

  • Formed through the roll-up of smaller regional companies, the company offered IT consulting services for large clients and internet start-ups on an international basis.
  • Debtor’s attorney and Creditors’ Committee attorneys had battled throughout the contentious Chapter 11 case, and as part of the Liquidating Plan, both sides agreed to bring in a Special Litigation Trustee whom both parties trusted and who was viewed as totally independent to handle litigation as it pertained to their constituencies.
  • Hired to evaluate specific potential claims and causes of action (lawsuits) that may have significant value to the debtor’s estate. On the debtor side, the issues involved Director and Officer (D&O) liabilities, preference recovery, and excess payments to Officers. On the Committee side, the issues involved preference recovery and claims resolution.

How We Advised

  • Following business, accounting, and legal investigations, we filed lawsuits, through our attorneys, against the D&Os, one former officer for a multi-million-dollar preference and for repayment of excessive executive compensation, as well as against two Committee members for smaller preferences.
  • Additionally, we objected to the size of certain claims filed by Committee members.
  • Generated significant D&O claim and other recoveries through pre-trial negotiation.
  • Reduced claims by multi-million dollars through negotiation.
  • Estate paid all general unsecured Creditors 100% including interest.
  • Had over $500,000 in funds in excess of all claims left in the estate, which was given to charity as equity had been extinguished in the Liquidation Plan confirmation.

Key Contact

Dan F. Dooley, CTP 
Senior Managing Director 
Strategic Advisory Practice 
+1 603 660 8952 
[email protected] 

Related Practice Areas

> Investigations and Litigation Support 
When an investigation or litigation involves a company in financial distress, we help uncover the truth behind the numbers, recover assets, and navigate complex legal landscapes. We combine forensic accounting, fiduciary services, and litigation experience to expertly guide business owners, stakeholders, lenders, creditors, regulators, and counsel seeking recovery in distressed situations. 

 

> Solutions for Distressed Situations 
We deliver integrated solutions for distressed and insolvent businesses that maximize recovery, mitigate risk, and restore enterprise value. Our experts are retained to help distressed organizations stabilize operations, protect stakeholder interests, and execute turnaround strategies. We take an operationally-focused approach that looks beyond the balance sheet to minimize further degradation and build a path to sustainable growth. 

Our Experts