Client Situation Resolution

Citigroup (Enron) Litigation)

 Citigroup, a multi-billion global diversified money center bank, was sued by the Enron Estate which sought recoupment of $250 million for an alleged preferential transfer. An ABS professional wrote an expert report in defense of this action. The expert report centered on the reasonableness of restructuring actions taken by Enron’s Management in the 90 days prior to Enron’s bankruptcy from the perspective of a restructuring advisor. The matter settled on favorable terms shortly after deposition.

Calpine Corporation

 Calpine, the second largest domestic electricity generator, faced a $10.0 billion valuation difference between competing constituents. Bankruptcy Judge Lifland needed an expert (Rule 706) to assist in his ruling.  An ABS professional led the expert report team for Judge Lifland. An expert report was written which analyzed the valuation differences between the constituents and recommended an appropriate value for Calpine. After the report was issued, the matter settled at the value concluded in the expert report leading to confirmation of the Company’s plan.

The James River Coal Company

 The Company is a large coal mining company which was forced to file for bankruptcy court protection.  An ABS professional served the Official Committee of Unsecured Creditors (“the Committee”) in determining strategies to maximize their potential return. Pursued litigation under the Coal Act of 1992. The Trust benefited from work done by its professionals to lobby for passage by the Congress in 2007 of the Coal Act Refund on behalf of James River as a member of The Coal Act Fairness Alliance (“CAFA”). These efforts contributed $14 million.

Level Propane, Inc.

 The Unsecured Creditors Committee (the “Committee”) for this $80.0 million annual revenue distributor of propane for consumer and commercial use with approximately 60,000 customers, sought expertise to enhance it’s return. An ABS professional served as the Committee’s financial advisor. Performed a financial investigation of potential causes of action related to former D&O’s and secured lenders. Based on this analysis, the financial facts did not warrant a cause of action.

Confidential

 Two retail petroleum distribution companies were embroiled in a breach of contract dispute with accusations of unjust enrichment involving a failed joint venture. An ABS professional was retained to act as an independent neutral in an effort to resolve the dispute. Performed as an independent accounting neutral and reviewed more than 40 claims levied by each of the parties. The engagement involved the analysis of contracts, supporting documentation and industry trends. Prepared a report that calculated amounts due each party that was used in attempt to resolve the dispute.

Exxon/Mobil

 Plaintiff alleged that Mobil had promised to approve the Plaintiff’s point-of-sale technology for use by Mobil’s branded dealer network. The Plaintiff alleged that due to Mobil’s breach of this agreement and tortious interference that they lost considerable sales resulting in lost profits totaling in the millions. An ABS professional provided support to a financial expert retained by Mobil to help defend against the Plaintiff’s claims. The ABS professional was responsible for analyzing the damage claims, constructing cash flow models, and helping refute the opposing experts opinions. The case ultimately settled favorable to Mobil.

Stark County Court of Common Pleas

 Debtor defaulted on a $10 million note secured by 18 retail petroleum properties. Lehman Brothers, the creditor, filed a foreclosure action in the Stark County Court of Common Pleas, requesting the appointment of a receiver and that the properties be liquidated for purposes of satisfying the note. An ABS professional was appointed Receiver by the Stark County Court of Common Pleas. An ABS professional worked under the direction of the Court to provide operational, financial and investment banking services. This ultimately led to the liquidation of the assets and returning more than 90-cents on the dollar to Lehman, after the payment of administrative fees.