Representation: Largest Unsecured Creditors
Bankruptcy – Western District of Pennsylvania
Situation: Seven of the largest creditors of a Pittsburgh-based retailer refused to accept David Weis Wholesale Jewelers, Inc.’s out-of-court liquidation offer. Bernstein and Bernstein, P.C. was hired by the creditors to counsel them on the alternatives. The seven creditors decided to file an Involuntary Chapter 11 Petition against the company.
Action: Within two days after the filing, the company’s offer to creditors improved from $5.5 million to $7.4 million. Four days later, just before a hearing in bankruptcy court, the company’s offer improved to a guarantee of $8.75 million.
The creditors were pleased that the actions taken by their counsel on their behalf resulted in an almost 60 percent improvement in the company’s guarantee to creditors.