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- Opportunity: Our client was a family-owned rural telephone company subject to highly specialized regulation and very complex financing involving government and quasi-governmental agencies. The company’s stock had been pledged to secure other bank debt that went into default and the lending institution sought to foreclose our client’s stock and gain control of the company.
- Solution: Doerner filed a Chapter 11 bankruptcy case for the client in order to stay the action of the bank against the company’s stock. During the hotly-contested Chapter 11 case, we assisted our client in negotiating a plan of reorganization which gained the bank’s support, provided for a long-term payout of a portion of the bank debt while retaining ownership of the company for the family.
- Result: As a result of the successful reorganization, the family retained ownership of the company, acquired new financing, restructured its debt and retained its many longtime employees.
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