In the Daily Journal article “Critical Vendors Can Be Key to Chapter 11 Reorganization,” David Kupetz and Asa Hami discussed Nike being a critical vendor for Shiekh Shoes and approval of Shiekh’s Chapter 11 reorganization plan.
On June 15, 2018, the U.S. Bankruptcy Court for the Central District of California (Judge Vincent Zurzolo) entered its order approving Shiekh’s Chapter 11 plan. Shiekh successfully emerged from Chapter 11, having beneficially modified dozens of leases, eliminated millions of dollars of debt, obtained new financing and closed unprofitable locations. At its inception, however, Shiekh’s Chapter 11 case was dependent upon the court approving a critical vendor and super priority financing arrangement Shiekh reached with its key supplier, Nike.
Finding that Nike was clearly a “critical” vendor, the court approved the special treatment afforded Nike in the Shiekh case, initially on an emergency interim basis at a hearing conducted the day following the commencement of the case and, allowing for additional notice to creditors, thereafter on a final basis.
Shiekh Shoes was represented by SulmeyerKupetz. The primary attorneys working on the case were David Kupetz, Asa Hami, Claire Wu, Jeff Pomerance and Steve Werth.
Read the full article here.