Firm Prevails in Representation of Minority Shareholder in Challenge to Debtor’s Effort to Extinguish Equity– December 8, 2015

The firm represented a co-founding member of Chapter 11 debtor, Rover Technologies, LLC, in his objection to the debtor’s motion for entry of a Final Decree.  The Debtor’s confirmed plan required shareholders to infuse additional funds in order to retain their equity interests.  The motion for Final Decree purported to extinguish the equity interests of the firm’s client, who objected to the forfeiture on due process and procedural grounds.  After two days of trial, Bankruptcy Judge K. Rodney May, concluded that minority shareholder did not receive sufficient notice of the amount, timing, and procedure for making the capital contributions required to retain his interests in the reorganized debtor.  The Court further directed the appointment of special counsel to devise and implement a solicitation of capital contributions from all of the debtor’s equity holders.  A Final Decree preserving shareholder rights was entered on December 8, 2015.  Steve Leslie, Amy Harris, Barbara Hart and Mark Robens led the firm’s representation of the shareholder.