White and Williams LLP Helps Land 100% Recovery for Unsecured Creditors of Phoenix Payment Systems, Inc.
The United States Bankruptcy Court for the District of Delaware has approved a bankruptcy reorganization plan that will pay general unsecured creditors of the Debtor, Phoenix Payment Systems, Inc., 100% of their allowed claims filed in the case.
The plan of reorganization was co-sponsored by Phoenix and its Official Committee of Unsecured Creditors. The highly successful plan, approved by Delaware bankruptcy Judge Mary F. Walrath on March 10, 2015, was the culmination of a $50 million sale of Phoenix’s assets that closed in October 2014, a deal that M&A Advisor named the 2014 Distressed M&A Deal of the Year in the $25 million to $100 million category.
“This is a great example of how unsecured creditors can benefit from the stabilizing effect of a chapter 11 filing through an improved sale environment conducted under court supervision, with a free and clear purchase of distressed assets”, said White and Williams LLP bankruptcy partner Earl Forte. “The bidding for Phoenix’s assets actually improved after Phoenix’s chapter 11 filing in August”, Forte added.
Before Phoenix’s chapter 11 filing in August 2014, bidding for Phoenix’s assets had been in the $14 million range, but increased substantially and closed at $50 million post-chapter 11 filing. “The lawyers worked together toward a prompt asset sale and plan approval,” said White and Williams LLP, Delaware bankruptcy partner Marc Casarino. Contentiousness in the case was also kept to a minimum.
White and Williams LLP acted as Delaware counsel to the Official Committee of Unsecured Creditors in the Phoenix case. Earl M. Forte, Marc S. Casarino, Amy E. Vulpio and Agatha C. Mingos made up the White and Williams team and were co-counsel with Sharon L. Levine, Wojciech F. Jung and Elie J. Worenklein of Lowenstein Sandler LLP.