Hahn Loeser represented Buckingham SRC, Inc., a manufacturer and processor of magnesium flux and related products, in its Chapter 11 Case, seeking to restructure its balance sheet by effectuating a sale of substantially all of its assets. Using Section 363 of the Bankruptcy Code, Buckingham SRC was successful in selling its assets free and clear of all liens, interests and encumbrances in less than 60 days to SRC Worldwide, the designee of the Debtor’s senior secured lender. The sale also included the assumption of more than $400,000 in payables owed to key vendors.While the sale process progressed, Buckingham SRC, with the assistance of and debtor-in-possession funding negotiated by Hahn Loeser, rehabilitated its damaged and aged equipment and machinery. These repairs and enhancements resulted in a purchase price for the company’s assets that paid in full the top three levels of secured debt owed by Buckingham SRC.
Finally, the sale negotiations and dollars left behind by Buckingham SRC’s secured lenders paved the way for Buckingham SRC to confirm a liquidating plan to formally wind down its operations and provide a clean slate for the new company and third parties who transact with the company.