Elliott Greenleaf Leads Creditors Committee to Significant Recovery For Creditors On Sale Of Assets
September 2008 -Elliott Greenleaf, as Delaware Counsel to the Official Committee of Unsecured Creditors, announces that the successful sale of ProxyMed Transactional Services and its affiliates will bring a recovery of at least 75% for unsecured claims in the Proxymed Transactions, Inc. bankruptcy matter. An initial 6%-12% recovery was projected by the Debtors on the first day of the bankruptcy case, which by most standards would have been a solid recovery for unsecured creditors. Although the extent of the claims are unknown at this time (the schedules of assets and liabilities is still due to be filed and the deadline for filing claims has not passed), the recovery to general unsecured creditors will clearly be significantly higher than originally estimated by the Debtors. Just forty-nine days after the start of the case, the efforts of the Debtors and the Committee's professionals led to a successful $24.5 million dollars winning bid.
Vigorous advocacy by Elliott Greenleaf throughout the case supported and directed the auction process resulting in a sale price more than double the initial bid.The Committee professionals were instrumental in stewarding the process to ensure vigorous and active participation in the auction and the due diligence process which saw over 90 potential buyers. Further, the losing bidder, who is obligated by Court Order to a back up bid of $24 million sits waiting should there be an unforeseen issue.
Elliott Greenleaf serves business in international, federal and state business insolvency matters, including workouts, wind-downs, assignments for the benefits of creditors and Chapter 11 and Chapter 7 proceedings. Elliott Greenleaf's bankruptcy practice includes representation of committees, debtors, individual creditors, and examiners and trustees.
The Firm’s representation of the Creditors Committee in this matter is led by Delaware managing shareholder Rafael Zahralddin and Firm President Henry Siedzikowski.