Two Fox Transactions Win 2016 Turnaround Atlas Awards

May 6, 2016 – Press Releases

Fox Rothschild LLP is pleased to announce that two transactions handled by the firm’s bankruptcy attorneys have won the Global M&A Network 2016 Turnaround Atlas Awards. The deals selected for awards were:

  • Community Impact Restructuring of the Year Award
    • Family Christian Chapter 11 Plan of Reorganization and Sale to FCS GiftCo
  • Judicial Restructuring of the Year Award
    • Veris Gold USA Inc. Assets by Whitebox Advisors LLC (WBOX 2014-1 Ltd.)

The Annual Turnaround Atlas Awards recognize the top dealmakers and firms for completing a wide variety of restructuring transactions. Winners are officially honored on May 17 at the awards gala in New York City during the forum meeting.

Deal Details

The Family Christian Chapter 11 Plan of Reorganization and Sale to FCS GiftCo

Fox Rothschild LLP Partners Michael G. Menkowitz and Paul J. Labov represented the Official Committee of Unsecured Creditors in the bankruptcy of Family Christian Stores and successfully kept the retail chain open, saving thousands of jobs across the country. With Fox’s guidance, the Debtors reorganized through the sale of their assets to an affiliated entity, preventing the purchase of the Debtors’ assets and the closing of the company by a liquidator. Originally conceived as a quick sale to insiders, the Committee was able to slow the sales process down and oversee a robust and clean marketing process. In doing so, the Debtors were able to focus on trimming their capital structure, which eventually led to a buy-out of the second lien debt at an almost 80-percent discount.

Purchase of Veris Gold USA Inc. Assets by Whitebox Advisors LLC (WBOX 2014-1 Ltd.)

Fox Rothschild LLP Partners Brett Axelrod, Charles Axelrod and Micaela Rustia Moore filed a Chapter 15 petition on behalf of Ernst & Young in its capacity as the foreign representative of the Veris Gold Group for recognition of the foreign proceeding under Canada’s Companies’ Creditors Arrangement Act before the Supreme Court of British Columbia in Vancouver. The foreign representative sought to preserve the status quo in order to ensure the debtors would have the opportunity to restructure their businesses for the benefit of all stakeholders as contemplated under the U.S. Bankruptcy Code and Canadian law. This goal was achieved through court-supervised asset sales and active negotiations and cooperation with mining authorities having jurisdiction over environmental and safety issues.