Hercules Service Corporation
Bankruptcy – Western District of Pennsylvania
Situation: This Debtor was an automobile rustproofing manufacturer and franchisor. Because of his expertise, Joseph Bernstein was hired to assist the company’s regular counsel in filing this Chapter 11.
The major asset of this debtor was a bond that was deposited with the Commonwealth of Pennsylvania Insurance Department when it formed the Angelica Mutual Insurance Company. In addition to scattered litigation with “investors” and other creditors, major legal services were involved to determine the entitlement from the liquidation of this insurance company.
Action: Once Bernstein and Bernstein, P.C. was successful in determining this entitlement, further legal action was required to protect that entitlement from the claims of the Pennsylvania Insurance Guarantee Association. This effort successfully produced $123,549.29 for this estate.
As Disbursing Agent, Joseph Bernstein reviewed, evaluated, adjusted and/or objected to more than six hundred claims. The result was that three hundred and thirty-five claimants received a seventy percent distribution pursuant to a plan of liquidation. The total payout was $185,713.23.