Lawyers Show Muscle in Allens Bankruptcy Case

by Arkansas Business Staff  on Monday, May. 12, 2014 12:00 am  

As the bankruptcy case of Allens Inc. of Siloam Springs continues to wend its way through the court system, the legal bills are adding up to an amount fairly described as eye-popping.

The law firm Greenberg Traurig LLP of New York, which represented the 87-year-old family-owned vegetable processor and food-service provider, recently was awarded $1.35 million in professional fees and another $50,000 for expenses for the work done between Oct. 28 and Feb. 28.

Other bills that are pending approval from U.S. Bankruptcy Judge Ben Barry include:

  • Alvarez & Marsal North America LLC, a global professional services firm specializing in turnaround and interim management, is seeking payment of $615,100 for fees and $50,000 for expenses for work performed between Feb. 1 and March 14.
  • The attorneys for the Official Committee of Unsecured Creditors in the case also submitted their bills.
  • Colley LLP of New York asked Barry to approve its bill of $582,660 for work between Nov. 13 and Feb. 28. It also generated $11,650 in fees during that period.
  • Eichenbaum Liles P.A. of Little Rock, the Arkansas law firm for the Official Committee of Unsecured Creditors, also is seeking $14,150 in fees and $1,250 in expenses for work handled between Nov. 14 and Feb. 28.

Those motions for payment are pending along with a motion to convert the bankruptcy from a Chapter 11 reorganization to a Chapter 7 liquidation.

It was back in February that Sager Creek Acquisition Corp., a newly formed entity owned by investment funds managed or advised by Sankaty Advisors LLC and GB Credit Partners LLC, bought Allens at a bankruptcy auction in a deal valued at $160 million.

In bankruptcy filings, though, Allens cited nearly $290 million in debt and $295 million in assets.

 

 

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