Orrick, Herrington & Sutcliffe LLP
10/29/2024 | Press release | Distributed by Public on 10/29/2024 12:11
Official Committee of Unsecured Creditors Secures a Significant Settlement in Chapter 11 Cases of Liquidating Supply, Inc. (f/k/a Supply Source Enterprises, Inc.) and its[...]
The Official Committee of Unsecured Creditors has secured a significant settlement in the Chapter 11 cases of Liquidating Supply, Inc. (f/k/a Supply Source Enterprises, Inc.), a distributor of protective and sanitation products, and its affiliates.
A cross-practice team from Orrick's restructuring group and Greater China practice represented the committee.
THE CASE
Following the successful $63 million credit-bid sale of substantially all of the Debtors' assets to an affiliate of The Tranzonic Companies this year, Judge Brendan Linehan Shannon of the U.S. Bankruptcy Court in Delaware confirmed the Debtors' Chapter 11 liquidation plan on Oct. 22, 2024, after the unsecured creditors voted overwhelmingly to accept the plan.
The confirmed plan memorializes a global settlement between the Debtors, the committee, Tranzonic and the Debtors' prepetition owner, H.I.G. Capital. The settlement provides for a waiver of claims from various parties in an aggregate amount of $104 million. It also provides for the contribution of nearly $2 million in cash to a liquidation trust to be formed pursuant to the plan for the benefit of unsecured creditors. Prior to the settlement, general unsecured creditors were originally slated to receive no recovery.
THE TEAM
Orrick's Raniero D'Aversa, Mark Franke, Xiang Wang and Brandon Batzel led a cross-practice team in the United States and China that advised the committee, composed exclusively of Chinese vendors. The team included Michael Trentin, Nick Sabatino, Jenna MacDonald Busche and Dan Carnie.