Contact Information: Media Contact: Zach Olsen 415-732-7805 zolsen@cooley.com
Cooley Bankruptcy Team Secures Multi-Million Dollar Settlement for Unsecured Creditors in Retail Bankruptcy Dispute
| Source: Cooley Godward Kronish LLP
NEW YORK, NY--(Marketwire - July 31, 2007) - Cooley Godward Kronish LLP's bankruptcy and
restructuring practice has prevailed for the unsecured creditors of
Norstan's, a women's budget retailer, in obtaining the desired settlement
of a $67 million fraudulent transfer lawsuit arising out of a $53 million
leveraged buyout and an earlier distribution of $14 million to insider
shareholders.
The ruling approving the settlement was issued in the U.S. Bankruptcy
Court's Eastern District of New York on July 31 by Chief U.S. Bankruptcy
Judge Carla E. Craig. The lawsuit, on behalf of the unsecured creditors,
asserted that in the months before declaring bankruptcy, Norstan's made
distributions of $14 million to the company shareholders and thereafter
leveraged its own stock to transfer $53 million to those same shareholders.
"We are pleased with the court's approval today of the settlement supported
by the Official Committee of Unsecured Creditors," said Cooley partner
Ronald R. Sussman. "The transfers associated with Norstan's leveraged
buyout were constructively fraudulent and today the unsecured creditors
received a fair settlement for the damages they sustained." In addition to
Sussman, Cooley Partner Lawrence C. Gottlieb and Associates Jeffrey L.
Cohen, Seth Van Aalten and Michael Klein advised on the matter.
Cooley is one of the top ten U.S. legal advisors on bankruptcy and
restructuring matters, according to leading business publication The Deal.
The firm represents secured lenders, official and unofficial creditors'
committees, equity committees, employee and retiree committees, tort
committees, investors in distressed situations, debtors and companies and
governmental entities in the negotiation of complex reorganizations.
About Cooley Godward Kronish LLP
Cooley Godward Kronish's 600 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 technology, life sciences,
financial services, retail and energy.
Cooley has full-service offices in major commercial, government and
technology centers: Palo Alto, CA, New York, NY, San Diego, CA, San
Francisco, CA, Reston, VA, Broomfield, CO, Washington, DC and Boston, MA.
For additional information, please visit www.cooley.com.