Complex situations. Substantive roles.

Situation

Dean & DeLuca, the iconic premium gourmet retailer, entered Chapter 11 following significant financial distress and the closure of its U.S. stores. The company needed to address a highly leveraged balance sheet while preserving the value of its internationally recognized brand and creating a path toward restarting operations.

Our Role

Joseph Baum served as Co-Chief Restructuring Officer and helped lead the company through its Chapter 11 restructuring. Working closely with management, BJC professionals advised on the financial, operational and bankruptcy-related matters necessary to advance the restructuring and develop a path toward emergence.

Outcome

Dean & DeLuca obtained confirmation of its Chapter 11 plan and emerged from bankruptcy with a substantially strengthened balance sheet. The restructuring eliminated more than $300 million of debt and positioned the company to pursue a restart of operations in the United States and internationally.

Situation

L&L Wings, a multi-state beachwear retailer, faced a substantial litigation judgment that threatened the continued operation of the business. The company entered Chapter 11 to address the judgment, restructure its obligations and preserve the operating business.

Our Role

BJC professionals served as financial advisors to the debtor throughout the restructuring. The team developed financial projections, analyzed operating performance and liquidity, evaluated store-level performance and lease decisions, performed claims and liquidation analyses, and provided financial analysis supporting development of the company's plan of reorganization.

BJC professionals also conducted extensive forensic and accounting analysis of transactions involving related parties, insiders and family members in support of an independent investigation. The team traced and reconciled shareholder distributions, related-party loans and advances, rents, compensation, merchandise purchases, guarantees and other transfers. Where historical accounting records were incomplete, the team reconstructed transactions using bank statements, cancelled checks and other available financial records.

Outcome

L&L Wings successfully reorganized as a going concern under a confirmed Chapter 11 plan. The restructuring preserved the operating business and provided for substantial creditor recoveries, including a 50% cash distribution to allowed general unsecured creditors, with the potential for additional recoveries.

Situation

All Year Holdings was a real estate development and holding company with a substantial portfolio of residential and commercial properties concentrated in Brooklyn. The group entered restructuring with more than $1 billion of assets and approximately $1.6 billion of secured and unsecured debt, creating a complex situation involving multiple properties, creditors and proceedings in more than one jurisdiction.

Our Role

BJC professionals served as financial advisors to the debtor throughout its Chapter 11 restructuring. The team analyzed liquidity and cash flow, supported bankruptcy reporting, and advised the company in connection with its debtor-in-possession financing and broader restructuring.

Joseph Baum served as the debtor's financial declarant in support of the DIP financing. BJC professionals developed the financial analysis supporting the DIP financing, assisted in evaluating financing alternatives, prepared for the DIP hearing, and advised management and counsel on the financial aspects of the company's Chapter 11 strategy.

Outcome

All Year Holdings obtained confirmation of a Chapter 11 plan implementing a comprehensive restructuring of the company and its assets. The restructuring was coordinated with parallel proceedings in the British Virgin Islands and provided a mechanism for restructuring and transferring the company's interests while addressing its complex capital structure.

Situation

Goodman Networks, a national provider of telecommunications infrastructure and field services, faced severe financial distress following significant operating challenges within its telecommunications businesses. The company confronted substantial secured debt, trade obligations and complex intercompany relationships while liquidity continued to deteriorate.

Our Role

BJC professionals were engaged to assess the company's financial position and advise on restructuring alternatives. The team analyzed cash flows, accounts receivable and payable, financial statements and intercompany balances, and developed financial presentations for the company's bondholders and their advisors.

As the restructuring progressed, Joseph Baum was appointed Chief Restructuring Officer and sole officer and decision maker of Goodman Networks. BJC professionals worked with counsel and stakeholders to manage liquidity, evaluate assets and liabilities, address creditor issues and navigate the company's restructuring and wind-down.