Recoton

Client

The predecessor company to the liquidating trust was Recoton Corporation, a $650 million consumer electronics company.

Challenge

The Company liquidated nearly all assets prior to the confirmation of the plan of liquidation, but little work was performed in reconciling claims, prosecuting avoidance and pursuing other causes of actions.

Solution

Utilizing proprietary software, Bridge efficiently managed the processes of claims reconciliation including making distributions and producing all objection exhibits, communicated with the creditors on tax information, and providing avoidance analysis support. Operating costs were minimized by utilizing debtor personnel for certain business and administrative tasks while providing expert management for the overall bankruptcy process.

Results

The case is ongoing but to date, recoveries so far from preference actions are approximately $700,000 and administration of the estate has progressed smoothly and cost effectively.