Professional Services
Professional Services Firm
Full Credential Description
When a financial services firm with secondary life insurance assets filed for Chapter 11 protection, it left $1.6 billion in bonds at risk, impacting over 27,000 investors. The situation was complicated by a cloud of fraudulent transactions, necessitating expert intervention to isolate and restore the investments. we was engaged to advise the official bondholder committee (OBC) during this challenging bankruptcy case.
The OBC required a financial advisor with expertise in both corporate investigation and bankruptcy to navigate the complexities of the case, particularly as one of the independent entities was dismantling its SPAC model. we conducted a comprehensive investigation into prepetition transactions, identifying causes of action and assisting legal counsel in preparing a standing motion and complaint against the debtors and other involved parties. Key actions included analyzing the use of L Bond proceeds, identifying potential fraudulent transfers, investigating elements of a Ponzi scheme, and quantifying commissions paid to broker-dealers.
Through meticulous financial analysis and oversight of numerous motions and filings, we worked to secure favorable settlements and maximize recoveries for L bondholders. Their investigation revealed critical details about the debtors' prepetition transactions, empowering the OBC to pursue a range of claims vigorously. These efforts were instrumental in guiding the debtors toward a successful exit from bankruptcy, leading to the establishment of a wind-down trust for ongoing operations and a litigation trust to address additional claims identified during the investigation. As a result, the situation for the bondholders began to improve significantly.