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United Road Towing

February 6, 2017
The firm represented the creditors' committee in the chapter 11 bankruptcy of United Road Towing, the nation’s largest towing company, which filed for bankruptcy protection along with more than two dozen affiliates due to expenses related to a 2014 noncompete lawsuit with former executives. The company was sold to the existing second-lien holder in a transaction that satisfied the senior lien and credit bid a portion of the buyer’s junior lien. Although general unsecured creditors were significantly out of the money, the firm negotiated an assumption of a portion of the general unsecured claims as part of a transaction that resulted in an approximately 5% distribution to general unsecured creditors which was made shortly after the transaction closed.