This Chapter 11 filing by one of the major art dealers in Los Angeles has been pending before the Bankruptcy Court for more than two years. During that time, SulmeyerKupetz has been involved representing the Official Committee of Unsecured Creditors in the bankruptcy case. SulmeyerKupetz has actively participated in highly contentious litigation between the Debtor and one of its two landlords regarding one of the operating locations where the Debtor does business.
SulmeyerKupetz has also been involved in appeals of Orders rendered by the Bankruptcy Court in this case. Most importantly, when sufficient progress toward a reorganization was not being made by the Debtor, SulmeyerKupetz prepared and filed its Chapter 11 Plan and Disclosure Statement under which the business affairs of the Debtor would be reorganized and existing management of the Debtor ousted from responsibility for future operations until claims of unsecured creditors were paid in full. The Committee’s Disclosure Statement was approved and a hearing on confirmation of the Committee’s Plan was set.
Shortly prior to the hearing on confirmation of the Committee’s Plan, and only as a result of the actions of SulmeyerKupetz in putting forward a viable Plan of Reorganization that threatened the Debtor with a loss of its business through confirmation of the Committee’s Plan, the Debtor entered into a purchase and sale transaction with the Los Angeles Metropolitan Transportation Authority under which the Debtor would exercise a purchase option on a leased property in Beverly Hills, California at 9430 Wilshire Boulevard, and sell the property to the MTA for $40,000,000.00.
On June 19, 2015, this transaction closed. SulmeyerKupetz played an integral role in overcoming various hurdles that placed the transaction at risk. Closing this sale is an extremely significant event in this case. A substantial portion of the $40,000,000 will flow to the Bankruptcy Estate, which will pay certain priority claims, create a pool of funds to pay other creditor claims, and will free up other assets and funds, including the liquidation of a claim against an affiliate of the Debtor and the Debtor’s earnings, to pay creditors a substantial dividend through a revised Plan of Reorganization. SulmeyerKupetz continues to represent the Committee in the case and continues to move forward with its efforts to have a Plan that pays unsecured claims in full confirmed. (Lawyers: Victor Sahn, Daniel Lev and Asa Hami)