Gibson Brands Headlines Latest Bankruptcy Batch of Big Law Creditors

What much better company than Gibson Brands Inc., producer of the famous Les Paul guitar, to play a mournful tune in an ode to law office taking a look at overdue expenses? Gibson Brands applied for bankruptcy Monday in Delaware as part of a restructuring offer that will see loan providers take control of the renowned maker of guitars, pianos and other musical instruments. According to a list of Gibson Brands’ 30 biggest unsecured financial institutions, the debtor owes $139,144 to White & Case, a company that has actually done some restructuring work for the Nashville-based company. Goodwin Procter and Pepper Hamilton are encouraging Gibson Brands in its Chapter 11 case. Neither company has actually yet submitted billing declarations with the bankruptcy court. The financial collapse of the company, which was established in 1894 and is presently owned by executives Henry Juszkiewicz and David Berryman, follows an unsuccessful effort to broaden into other business lines and an ongoing decrease in the yearly sales of guitars. In court documents, Gibson Brands notes as much as $500 million in debt.

Paul, Weiss, Rifkind, Wharton & Garrison is encouraging an advertisement hoc group of noteholders supporting Gibson Brands’ restructuring plan. According to report, Silver Point Capital LP, Melody Capital Partners LP and funds connected with a financial investment advisory system of buyout giant KKR & Co. LP are the stakeholders poised to take control of Gibson Brands, which wants to conclude its bankruptcy procedures by September. Gibson Brands, whose general counsel is Bruce Mitchell, signs up with a string of having a hard time business that have actually declared bankruptcy in current months and left companies of all sizes holding out hope for overdue expenses to vanish. Within the previous couple of weeks, numerous more business have actually slipped into insolvency and produced a procession of overdue lawyers. In late March, just after The Weinstein Co. Holdings LLC left a path of Big Law financial institutions in its bankruptcy wake in Delaware, the earliest U.S. gun-maker also looked for Chapter 11 security in the First State.

 

Remington Outdoor Co. Inc. is once again being recommended by legal representatives from Milbank, Tweed, Hadley & McCloy and Lowenstein Sandler, in addition to nationwide bankruptcy shop Pachulski Stang Ziehl & Jones. Chicago’s Swanson, Martin & Bell is representing Madison, North Carolina-based Remington, previously referred to as Freedom Group Inc., in litigation with households of the 26 people eliminated by Adam Lanza in the dreadful December 2014 mass shooting in Sandy Hook, Connecticut. On a tally of Remington’s 30 biggest unsecured financial institutions, Swanson Martin is noted as being owed $387,023.30. Philadelphia-based Zitner Candy Corp., known for its chocolate-covered Easter eggs and other scrumptious deals with, applied for bankruptcy in its home city in late April, owing $486,000 to local accident lawyer Kenneth Schuster; $24,670.75 to Duane Morris Government Strategies; and $3,267.95 to Duane Morris itself, according to court filings. Schuster and fellow local lawyer Evan Prochniak purchased Zitner back in 2010, but Prochniak and his other half declared personal bankruptcy last month.

 

Solar installing systems maker Schletter Inc., recommended by Moore & Van Allen, applied for bankruptcy recently, noting a $429,114.94 debt to Orrick, Herrington & Sutcliffe in its Chapter 11 case in Shelby, North Carolina. Englewood, Colorado-based Tempus Aircraft Sales and Service LLC also declared bankruptcy recently in Denver. The company mentions in court records that it owes $81,535.12 to Chicago air travel litigator Fred Begy III, who once practiced at a Locke Lord predecessor company before flying out on his own. Houston-based Erin Energy Corp., an oil and gas producer that focuses its financial investments on sub-Saharan Africa, applied for bankruptcy recently in its home city. The company owes $530,860.22 to Baker Botts; $180,600.59 to Norton Rose Fulbright; $115,618.48 to Jackson Walker; $62,230.90 to The Loev Law Firm in Bellaire, Texas; and $23,959.99 to Houston’s Looper Goodwine, according to court records. The Love Law Firm is counseling Erin Energy in its Chapter 11 case, together with Houston’s Okin & Adams.

In other places in Texas, the Brain Energy Institute, a questionable business previously called Cerebrum Health Centers and Carrick Brain Centers, applied for bankruptcy in Dallas in early April. In court filings, the debtor mentions that it owes $53,787.92 to Holland & Hart; & Hart;$ 31,354.51 to Dallas-based Farrow-Gillespie & Heath; $18,566.62 to Dallas-based Reese Marketos; and $2,470 to Irving, Texas-based Heygood, Orr & Pearson. The current bankruptcy of Parkprovo LLC, owner of the Seven Peaks Waterpark in Provo, Utah, notes a debt of $46,139.25 to Salt Lake City’s Bennett, Tueller, Johnson & Deere. Holland & Hart, nevertheless, has actually gotten $75,000 from Parkprovo to recommend it in Chapter 11, according to court filings.