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case studies

A sampling of just a few select cases managed by Logan & Company offer an atypical overview of some of the many industries we service, their challenges, our solution and the result.

Media
Retail No. 1
Asbestos Manufacturer
Basic Material Producer and Distributor
Telecommunications
Environmental
Retail No.2
Corporate

Case 1: Media
Background
A large national publishing company had filed for bankruptcy under the weight of various kinds of contractual obligations. Additionally, in order to maintain collegial relationships with ongoing vendors in their post-emergence from Chapter 11, the debtor's plan allowed them to enter into special agreements with these vendors.

Challenge
Having decided to assume, reject or cure all the various contracts the challenge was to analyze, segregate and address each contract in the most expeditious manner. Because the plan required the contracts to be dealt with and the agreements settled under a tight deadline from the Trustee, the timing challenge was a big one.

Solution
Using the Schedules of Assets and Liabilities as a starting point, Logan was able to create individualized reports for each creditor, allowing them to see the outstanding obligation of the debtor to them, and give them the opportunity to accept or reject the proposed agreement on their underlying contracts. Similarly, reports by category were created for court objections using counsel created formulas for establishing payable obligations. Additionally, the debtor entered into court approved negotiated trade agreements with primary vendors for whom Logan tracked the effects on the outstanding proofs of claim. By creating a smooth workflow system to reconcile the agreements being entered into outside the parameters of the objection process with the claims, Logan was able to assist the debtor and debtor's counsel in the efficient expunging of claims obligations.

Result
The debtor was able to address its outstanding contractual obligations, by either rejecting, assuming or curing them at fixed dollar amounts. The claims against the debtor were dealt with quickly as the trade agreements were negotiated, approved and signed. This allowed the debtor emerge from bankruptcy and address other underlying debt issues without the burden of the unknown or no longer necessary contracts weighing them down, and without alienating their crucial vendor relationships.


 

Case 2: Retail No.1
Background
A large retailer consisting of over twenty debtors with ongoing business operations needed to reconcile over 20,000 filed and scheduled claims aggregating over $25 billion as expeditiously as possible.

Challenge
The retailer did not have a centralized accounts payable system and wanted to accomplish this work without hampering its ongoing business operations.

Solution
Logan analyzed the claims pool dividing it in twenty-three discreet categories (i.e., capital structure, executory contracts, taxes) assigning over seventy individuals with knowledge of such categories to resolve claims assigned to them under the direction of one of two supervisors. Logan then developed an online reconciliation system on a secure server to be used by each responsible party. All information relating to the claims’ resolution was entered in that system with date of entry identifying the responsible party. Once each claim was resolved, the responsible party could submit that claims for review by his/her supervisor. The online system was designed so that each supervisor could create reports to ascertain any number of issues. Upon the supervisor’s review, he could either send the claim back for further reconciliation or, if satisfied, he could submit the claim to Logan for entry in its claims database. To aid the submission process, claims resolutions could be submitted to Logan singly or in batches. .

Result
The claims resolution process was handled expeditiously with little disruption to the debtors’ operations and, as it was so streamlined, with few Logan personnel assigned to the claims resolution process thereby minimizing the debtors’ administrative costs.


 

Case 3: Asbestos Manufacturer
Background
In previous decades, a large manufacturing company had produced and sold various asbestos containing products.  A separate corporate entity was established to deal with the claims, which eventually filed for Chapter 11.

Challenge
When the debtor filed its petition, suits had been filed on behalf of several thousand claimants by several hundred different law firms all across the country, each case being in different phases of the litigation process.  In order to settle all outstanding and future potential claims against the debtor, an asbestos-related claim trust needed to be established.  In order to fund the trust, however, the company had to determine the size and scope of the potential claims pool.

Solution
Starting with information that was already growing stale, Logan researched and updated the claimant firms' names, addresses and contact information.  Using a counsel created asbestos exposure questionnaire, Logan then created an online version of the questionnaire which the various litigating firms could access with secure, password protected user IDs.  Logan's design allowed for user-friendly batch uploading of claims data, and attaching court documents (interrogatories, depositions, medical records, etc.) to verify their clients' suits against the debtor.  After the questionnaires were completed, Logan created detailed reports to analyze the data to determine the underlying costs of settling all the claims against the debtor.  Additionally, the images of the questionnaires and their attending backup materials were automatically imaged and securely provided to the debtor for analysis.

Result
The debtor was able to realize a clearer picture of the scope of its debt burden, form projections of any future claims and thus fund the trust.  Once the trust was funded the parent corporate entity was able to move forward with their profitable business model knowing that the burden of past encumbrances was settled.


 

Case 4: Basic Material Producer and Distributor
Background
Three plan proponents wished to solicit voting on five separate plans of reorganization.  The solicitation was conducted to obtain sufficient acceptances to enable the confirmation of only one of the plans.

Challenge
At issue was how to solicit votes on each plan at minimal cost so as to cause minimum confusion to prospective voters.

Solution
After much discussion with Logan regarding the administrative tasks and costs involved, the plan proponents drafted a single disclosure statement containing the five plans and joint voting instructions for the ballots.  Counsel, in close collaboration with Logan, then drafted twenty-one ballots (three of which were master ballots), each reflecting up to five plans and a preference election as to which plan the voter preferred.  Some of the ballots contained a convenience class election.  The ballots were clear and concise.  Moreover, solicitation was accomplished at minimal cost as, instead of having to serve five sets of solicitation materials per voter, Logan was able to mail just one.

Result
Logan received few calls to explain the process to individual voters as the solicitation and the ballots were clear on their face.  Moreover, the tabulation of the ballots was rendered less cumbersome as Logan had not only been kept in the loop throughout, but had been a partner in, the process. 


 

Case 5: Telecommunications
Background
A telecommunications company with assets of over $1 billion dollars came to Logan & Company, Inc. for help in soliciting a pre-negotiated Chapter 11. The company had suffered a downturn resulting from the fallout in the telecommunications industry. In addition, the company had defaulted on a bond payment and was negotiating with its creditors to restructure the debt.
 
Challenge
The solicitation process required sending ballot packages to bondholders and was made more complicated by the need for confidentiality and speed.
 
Solution
Logan worked closely with management to understand their goals and objectives. Through a coordinated team effort, Logan went to work to identify and classify bondholders and create and produce personalized ballot packages. By providing tabulation management results on a daily basis, the company was able to determine its position consistently through the process.
 
Result
As a result, the customer was able to complete a successful restructuring and avoid a Chapter 11 filing.

 

Case 6: Environmental
Background
An environmental company with over thirty-five filing entities needed help completing their Schedules of Assets and Liabilities and Statement of Financial Affairs in less than thirty days.
 
Challenge
The company had over six, decentralized accounts payable systems that were geographically diverse. In addition, a loss of personnel had impacted their ability to retrieve data and create reports.
 
Solution
Logan worked with the company to prepare a project plan that was task specific and enabled management to understand each specific area of responsibility. To streamline the sign-off process, all documents were posted to a special Web site that was accessible to internal management at all times.
 
Result
The Schedules of Assets and Liabilities and Statement of Financial Affairs were both successfully filed on-time. This enabled the company to move ahead with a fast-track bankruptcy and emerge from Chapter 11 as projected. 

 

Case 7: Retail No. 2
Background
A large retailer with over 1 million creditors needed help in producing a noticing package that would be sent via overnight delivery to 20,000 individuals.

Challenge
Because the package contained a Motion that was filed in the Bankruptcy Court, the mailing was time-sensitive and needed a proof of delivery certificate to be valid.
 
Solution
Logan received the names and addresses on a data file at 3:00 p.m. on the day of mailing. The data was converted and addresses with incomplete information were corrected. Missing zip codes were automatically updated and overnight delivery labels were generated. Notices were inserted into the overnight packages and mailing labels affixed to the outside envelope. Logan scheduled staggered pick-up times with the overnight carrier and by 10:00 p.m., all the notices were scanned and shipped.
 
Result
The certificate of service was filed in the Bankruptcy Court and the Debtor had its Motion successfully approved.

 

Case 8: Corporate
Background
A large client with assets over $200 billion needed help in tabulating a vote for a reorganization plan with over 1,000 bond issues within a 2-week timeframe.
 
Challenge
Ordinarily, this process would have taken over six weeks to complete. This task was further complicated by the fact that most of the public debt was held in street name. This meant that each bank and broker received over 1,000 packages that they needed to distribute to their clients.
 
Solution
Logan’s solution was to implement a special Web site for the bank and broker community. Over 1,000 documents were posted to this Web site in less than a day and were made accessible throughout the tabulation period.
 
Result
Through this mechanism, Logan was able to satisfy the noticing requirements of the Bankruptcy Court and ensure that all interested parties were properly served.

 

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710 Long Ridge Road Operating Company II, LLC
A123 Systems, Inc. (n/k/a B456 Systems, Inc., et al.)
AcoustiSeal, Inc.
Amelia Island Company
American Classic Voyages, Co.
American MetroComm Corporation
Amfac Hawaii, LLC
Atchison Casting Corporation
AxisTel Communications, Inc.
Ballantrae Healthcare, LLC
Barzel Industries Inc.
BCP and BCP Finance
BCP Management, Inc.
Best Manufacturing Group LLC
BNA Subsidiaries, LLC
Breed Technologies, Inc.
Brothers Gourmet Coffees, Inc.
Burke Industries, Inc.
Burlington Industries, Inc.
CareMatrix Corporation
Centennial Healthcare Corporation
Christ Hospital, a New Jersey not-for-profit Corporation
Clark Material Handling Company
Clark Retail Enterprises, Inc.
Comdisco, Inc.
Commerce Bancorp, Inc.
Condustrial, Inc.
Congoleum Corporation
Copperweld Corporation
Crown Vantage Inc.
Darwin Networks, Inc.
Diamond Brands Operating Corp.
Dick Simon Trucking, Inc.
Digital Broadband Communications, Inc.
e.Spire Communications, Inc.
Eagle Food Centers, Inc.
Easy Gardener Products, Ltd.
Einstein/Noah Bagel Corp.
EOTT Energy Partners, L.P.
Exodus Communications, Inc.
Fedders North America, Inc.
FiberMark, Inc.
Florsheim Group Inc.
Fortunoff Fine Jewelry and Silverware, LLC
Freedom Communications Holdings, Inc.
General Chemical Industrial Products Inc.
GenTek Inc.
Geo. V. Hamilton, Inc.
Global Industrial Technologies, Inc.
Goody's Family Clothing, Inc. (Filed 6/9/08)
Goody's, LLC (Filed 1/13/09)
HA-LO Industries, Inc.
Houlihan's Restaurants, Inc.
Integral Nuclear Associates, LLC
International Foreign Exchange Concepts Holdings, Inc.
James F. Humphreys & Associates, L.C.
JGW Holdco, LLC
Kaiser Aluminum Corporation
Marcal Paper Mills, Inc.
McLeodUSA Incorporated
Metal Management, Inc.
Metex Mfg. Corporation
Miller Auto Parts & Supply Company, Inc.
MPC Computers, LLC
MSD Performance, Inc.
Napster, Inc. (N/K/A Enco Recovery Corp.)
National Century Financial Enterprises, Inc.
National Steel Corporation
NationsRent, Inc.
NCP Litigation Trust
NetVersant Solutions, Inc (a/k/a NVS Liquidating Company, Inc.)
New World Pasta Company
NewComm Wireless Services, Inc.
NexPak Corporation
North American Refractories Company
NSA (USA) Liquidating Corp.
Oakfabco, Inc.
Olympus Healthcare Group, Inc.
Open Range Communications Inc.
Oxford Building Services, Inc.
PAC Holding Company
Pennsylvania Fashions, Inc. (Rue 21)
Philip Services Corporation
Pillowtex Corporation
Pittsburgh Corning Corporation
PNG Ventures, Inc.
PPM Technologies Holdings, Inc.
PTC Seamless Tube Corp.
Rapid-American Corporation
Reichhold Holdings US, Inc.
RHI Entertainment, Inc.
Rufus, Inc.
Scotia Development, LLC
Seegrid Corporation
Senior Living Properties, LLC
SLI, Inc.
Specialty Products Holding Corp.
Spectrum Jungle Labs Corporation (Spectrum Brands, Inc.)
SSI Liquidating, Inc. (f/k/a Schutt Sports, Inc.)
Taylor-Wharton International LLC
Teleglobe Communications Corporation
Thaxton Life Partners Inc.
The Great Commission Care Communities, Inc.
(dba) The Woods at Cedar Run
The IT Group, Inc.
The LTV Steel Co., Inc.
Tokheim Corporation
True Temper Sports, Inc.
US Airways Group, Inc.
USEC INC. (now known as Centrus Energy Corp.)
USG Corporation
Verso Technologies, Inc., et al.
Viatel, Inc.
VP Buildings, Inc.
Williams Communication Group, Inc.
Winn-Dixie Stores, Inc.
World Kitchen, Inc.
Yarway Corporation