Spinnaker Coatings, Inc.

Client

Spinnaker was a $125 million annual revenue producer of paper coatings.

Challenge

A large debt load, caused by an acquisition and lower than expected operating results, had forced the Company to file for bankruptcy protection and sell substantially all of its operating assets. After the sale, creditors sought to increase their recoveries through claims reductions or by pursuing preference actions. Other avoidance litigations also required management.

Solution

Bridge was engaged to manage the remaining business affairs of the estate. Applying its proven methodology and technology tools, Bridge evaluated options for selling omission credits. and used its preference software to support potential preference actions.

Results

Prior to retaining Bridge, Spinnaker had not expected to provide a return to unsecured creditors. As a result of Bridge's solution, the Company was able to satisfy all secured and priority claims. General unsecured creditors received a distribution of $.005 per $1 claim. Bridge is currently pursuing additional litigation and asset sales that could generate an additional $.01 to $.02 per $1 claim to general unsecured creditors.