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Reorganized MMFX Technologies Corporation Emerges Stronger; PSZJ Negotiates Good Return for Unsecured Creditors

July 2011

Jeff Pomerantz and Shirley Cho represented the official committee of unsecured creditors in the MMFX Technologies Corporation chapter 11 bankruptcy. MMFX owned patents and valuable intellectual property relating to corrosive-resistant steel for construction industry and other industrial uses. After the committee was formed, the firm negotiated on the committee's behalf with the hedge fund lenders to convert their debt to equity, and with unsecured creditors to ensure preferred returns as a backstop to a sale process for the intellectual property.  Ultimately, because of the deal that was negotiated, unsecured creditors still received seventy cents on the dollar of owed money after the sale of intellectual property yielded no buyers. Under the terms of the Plan, MMFX emerged as a stronger, more financially sound company and will continue selling its high-strength and corrosion-resistant steel products to the construction market.