VER Technologies Holdco LLC (VER), a media production equipment and solutions provider, filed for Chapter 11 in the Bankruptcy Court for the District of Delaware on April 5, 2018. VER had approximately $800 million of funded debt and had negotiated a restructuring with its secured creditors, private equity owner and merger partner prior to commencing the chapter 11 case. VER’s initial plan of reorganization filed shortly after the commencement of the case provided no recovery for unsecured creditors.
The Official Committee of Unsecured Creditors appointed in VER’s chapter 11 case was represented by SulmeyerKupetz (Mark Horoupian, Victor Sahn, Alan Tippie, David Kupetz, Daniel Lev and Elissa Miller) and Whiteford Taylor & Preston (Christopher Samis, Katherine Good, Kevin Hroblak) as counsel, and Province (Paul Huygens, Carol Cabello and Jorge Gonzalez) as financial advisor. After months of intense efforts by the Committee’s professionals, a global settlement was achieved before litigation was filed. The settlement achieved by the committee was included in VER’s 4th amended plan of reorganization confirmed by the Court on July 26, 2018. The settlement embodied in the approved amended plan moved unsecured creditors from a 0% recovery to an anticipated 30% recovery under circumstances where the term lender’s unsecured deficiency claim estimated at $300 million, as well as claims by the current and former owners asserted to be in excess of $80 million, will not share in the unsecured creditors’ recovery.
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