Gordian prepared an expert witness report and was deposed in court in regard to the appropriate allocation of sale proceeds. Our client ultimately reached a successful settlement, including a favorable allocation of sale proceeds and releases.
Aerogroup filed for Chapter 11 in September 2017, with initial plans to sell 74 of its 78 stores and reorganize around the remaining four. In January 2019, the Company entered into an Asset Purchase Agreement with Global Brands Group (“GBG”) under which GBG would have purchased the Company’s non-intellectual property assets and entered into licensing and retail distribution agreements. However, GBG terminated the deal before the confirmation hearing.
After the busted sale process, the Company pivoted to a 363 sale, which resulted in the Company getting a successful bid from Alden Global Capital at levels below the total amount of secured debt. Subsequently, the case headed into a contentious battle between the DIP lender (Polk 33 Lending LLC) and the term loan lender (THL Corporate Finance Inc.) over the distribution of sale proceeds. The situation dealt with complicated issues around disparities in the collateral packages of the respective lenders.
Gordian provided expert witness services, including deposition and Court testimony and the related analyses regarding the appropriate allocation of proceeds to AeroGroup’s secured debt constituencies.
AeroGroup International Inc., dba Aerosoles, designs, manufactures, and sells footwear for women. The Company was founded in 1987 and is based in Edison, New Jersey. Gordian was engaged to provide expert witness services in regards to the appropriate allocation of sale proceeds.
The case was successfully settled, with Gordian’s client ultimately obtaining a favorable allocation of sale proceeds and releases.