Brown Rudnick Featured – Implant Sciences Ch. 11 Confirmed, Cash Fight Continues
PUBLISHED ON: 08/03/2017
Brown Rudnick's Managing Director of Brown Rudnick’s Litigation & Restructuring Department, Bill Baldiga, was featured in Law 360 in relation to the Implant Sciences Chapter 11 cash fight.
From the article:
Law360, Wilmington (August 3, 2017, 8:08 PM EDT) -- Warnings of battles to come clouded a Delaware Chapter 11 confirmation on Thursday for remnants of former bomb detection company Implant Sciences, with an equity committee attorney objecting to what he said were eleventh-hour moves to drain extra cash from the estate.
William R. Baldiga of Brown Rudnick LLP, counsel to the company’s official committee of equity security holders, urged Judge Brendan L. Shannon to make the plan effective immediately after his confirmation, in order to accelerate a shift in control to a liquidation trustee.
The request followed a dispute over wording in the order that Baldiga said would benefit officers and directors who filed claims on Wednesday for company “change of control” and severance payments and other end of employment benefits. Company CEO Robert P. Liscouski would receive the largest share, some $1 million, mostly in the form of top priority administrative claims. Liscouski has reported plans to resign his position this month, a move that will qualify him for payments that include a $300,000 separation payout and $300,000 termination payment.
Although the plan could have taken effect as early as Friday, Baldiga said, the officers and directors benefit motion would keep an objection open until Aug. 21, with administrative expense claims continuing to grow during that time.
“We’re concerned, as we have been, that there are people benefiting from delay, and those people control the debtors,” Baldiga said. “We want this delay to end and the plan, we think, compels it to end.”
To read the full article, please click here.