Wellmade Floor Coverings International, Inc.

Representation of the creditors’ committee of Wellmade Floor Coverings and its debtor affiliates in their chapter 11 cases in the Northern District of Georgia. The debtors are a leader in the flooring industry, specializing in the design, production, and distribution of top-line flooring collections, including as a leading OEM supplier, with a large manufacturing facility in Georgia and offices and warehousing in Oregon. Governmental authorities have been investigating certain insiders/affiliates of the debtors for labor trafficking and other crimes, and alleged labor and RICO violations have been filed by certain Chinese nationals against the debtors. Faced with challenging circumstances, the debtors filed the chapter 11 cases to stay foreclosure proceedings and maximize the value of the debtors’ assets through a going concern sale in the bankruptcy. With the firm’s counsel, the creditors’ committee is navigating through a proposed sale process and other case issues, with a goal to maximize the recovery of unsecured creditors including potential pursuit of estate causes of action.