Contact Information: Media Contact: Michael Larkin 212-479-6333 mlarkin@cooley.com
Cooley Advises Goody's Creditors in Emergence From Chapter 11 Bankruptcy
| Quelle: Cooley Godward Kronish LLP
NEW YORK, NY--(Marketwire - October 22, 2008) - Cooley Godward Kronish announced today that
Goody's Family Clothing, Inc. (Goody's), a moderately priced family apparel
retailer operating 287 stores in 20 states, has emerged from Chapter 11
bankruptcy. Cooley was counsel to Goody's official committee of unsecured
creditors.
Goody's plan for reorganization was confirmed by order of the United States
Bankruptcy Court for the District of Delaware on October 7, 2008. Its
emergence from bankruptcy marks only the second successful reorganization
of a retailer's operations since amendments to the U.S. Bankruptcy Code
were implemented in 2005. The other successful retail bankruptcy
reorganization was Hancock Fabrics Inc. in June 2008. Cooley also
represented the official committee of unsecured creditors of Hancock
Fabrics.
"The cards have been stacked against retailers since amendments to the
bankruptcy code were passed in 2005," said Lawrence C. Gottlieb, chair of
the Bankruptcy & Restructuring practice who recently testified before
Congress on the impact of the 2005 amendments. "In practice, the changes
effectively re-structured retail Chapter 11 to act predominantly as a
vehicle for secured lenders to sell the assets of a company through a quick
sale process that provides very little, if any, opportunity for retailers
to restructure their debt and rehabilitate their business."
"Given the recent economic climate and, specifically, the lack of credit,
it has been even more challenging for retailers to emerge from bankruptcy
as reorganized companies," said Partner Cathy Hershcopf.
About Cooley Godward Kronish's Bankruptcy & Restructuring Group
Cooley Godward Kronish's Bankruptcy & Restructuring attorneys bring their
strong business instincts to bear on the wide range of matters related to
restructuring and workouts. Our team has extensive experience representing
creditors and debtors in all aspects of bankruptcy and out-of-court
restructurings. We have handled matters throughout the U.S. and abroad,
across a wide array of industries -- including retail, technology and
manufacturing companies, utilities and multi-national financial
conglomerates. We represent official and unofficial creditors' committees,
debtors, equity committees, employee and retiree committees, tort
committees, secured lenders, investors in distressed situations and
companies and governmental entities in the negotiation of complex
reorganizations.
About Cooley Godward Kronish LLP
Cooley Godward Kronish's 725 attorneys have an entrepreneurial spirit and
deep, substantive experience, and are committed to solving clients' most
challenging legal matters. From small companies with big ideas to
international enterprises with diverse legal needs, Cooley has the breadth
of legal resources to enable companies of all sizes to seize opportunities
in today's global marketplace. The Firm represents clients across a broad
array of dynamic industry sectors, including clean tech, technology, life
sciences, real estate, financial services, retail and energy.
The Firm has full-service offices in major business and technology centers
nationwide: Palo Alto, CA, New York, NY, San Diego, CA, San Francisco, CA,
Reston, VA, Broomfield, CO, Washington, DC, Boston, MA and Seattle, WA.
For additional information on Cooley, please visit www.cooley.com.