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Specializing in insolvency and complex commercial matters since 1974

Bankruptcy Court Confirms Chapter 11 Plan For Marco Island Construction Company - June 19, 2008

On June 19, 2008, the United States Bankruptcy Court, Ft. Myers Division, entered an order confirming the plan of reorganization of Enterprise Construction, Inc. The Debtor had filed for Chapter 11 protection in October, 2007, with post-petition financing being provided by principals of the Company. The plan featured a restructuring of obligations to Regions Bank, a voluntary surrender of collateral (homes under construction) to Bank of America, subordination of the DIP financing to permit payments to general unsecured creditors, and a new contribution by principals to fund distributions to unsecured creditors. The plan also contained injunctive provisions and releases prohibiting actions against the principals who had funded the Chapter 11 plan. At an evidentiary hearing held at the time of confirmation, the Bankruptcy Court also found that the value of the collateral surrendered to Bank of America fully satisfied Bank of America’s debt and that Bank of America had no unsecured deficiency claim. Stephen R. Leslie and Daniel R. Fogarty led the firm’s representation in this case.