Ready Mix Concrete Company
Situation: A trade supplier of a ready-mix concrete firm hired Bernstein and Bernstein, P.C. to facilitate collection of a $540,000 unsecured account receivable from the concrete firm.
Action: The law firm was able to negotiate with the concrete firm to issue a judgment note and guarantees by its shareholders. The note and guarantees also provided that the debtor would pay the client’s attorney’s fees and interest in the account.
The debtor filed a Chapter 11 proceeding.
Bernstein and Bernstein, P.C. counseled the supplier in available strategies, enabling the client to leverage its position to obtain additional guarantors and additional security for the entire debt.
Bernstein and Bernstein, P.C. also advised the client in its service on the committee of unsecured creditors.
Complex litigation in trial and appellate courts was successfully prosecuted, eventually leading to the scheduling of a sheriff’s sale of property of the guarantors in several counties, at which time the guarantors obtained refinancing to pay the client’s claim. Over $800,000 was recovered, including the creditor’s attorney’s fees and interest on the debt.