Representative Judicial Engagements

UNITED STATES DISTRICT COURT, DISTRICT OF MAINE, CIVIL NO. 1:13-CV-00062-JAW; Appointed Receiver for Starch Partners, LLC and Starch Realty Associates, LLC.  Starch Partners produces food-grade potato starch sold to food processors and manufacturers; the product is used as a coating substance and is gluten free.  Motion for Appointment of Receiver filed by one of four secured lenders who held a first-priority lien on most of the company’s assets.  The Small Business Administration held a second-priority lien and had guaranteed certain portions of the loan made by the senior lender who petitioned for the appointment of the receiver.

1. • Appointed Receiver on March 1, 2013
   • Immediately took control of the company’s management with the intention of continuing production until the assets could be sold
   • Developed 13-week rolling cash flow forecast model to track the company’s performance and to allow for weekly reporting to the senior lenders
   • Renegotiated major supply contracts with raw material vendors
   • Froze all vendor payables as of the day prior to the commencement of the receivership, and converted the company to C.O.D. with the vendors without interruption of materials and services
   • Instituted management and other personnel changes
   • Held numerous company-wide meetings with employees to comfort them through the receivership process to assure potential buyers of continuity in staff at time of purchase
   • Developed sales memorandum to be distributed to a large number of strategic industry players; obtained court’s approval of memorandum and sealed-bid/auction procedures to be employed; met with several parties interested in acquiring assets
   • In late May 2013 identified winning bidders for finished inventory and company’s real and personal property
   • Closed on sales in late June 2013 to two highly-regarded industry players; real estate and other fixed assets purchased by strategic player from state of Washington who reopened plant and is currently operating it with same personnel

Receivership terminated on November 22, 2013
[Representative Judicial Engagements]‌ 

STATE OF MAINE, KENNEBEC COUNTY SUPERIOR COURT, CIVIL ACTION, DOCKET NO. CV-11-92; Appointed Receiver for Associated Grocers of Maine, Inc., a $120 million distributor of food and groceries to independent grocers in Maine and New Hampshire located in Gardiner, ME.  The company employed 140 people, half of whom were members of the Teamster Union.  Motion for Appointment of Receiver filed by one of two lenders secured by certain assets.  The second lender was secured by different assets; its loan had a partial guarantee from Finance Authority of Maine.

1. • Appointed Receiver on April 27, 2011 at 3:00 pm into a chaotic situation involving widespread media coverage
   • Immediately took control of the company’s management to develop a plan for closing the company’s facility in as short a period of time as possible
   • Directed the liquidation of the company’s $5 million of inventory over a six-week period and closed the facility on June 10, 2011
   • Developed and updated daily a rolling liquidation cash flow forecast
   • In the process of liquidating the inventory, negotiated the terms and conditions of several major purchase and sales transactions and worked with legal counsel to document and close the transactions
   • Oversaw employee layoffs with minimal issues
   • The recovery percentage on the inventory liquidation far exceeded the lender’s expectations
   • Oversaw a planned reduction in operations and administrative staff in order to minimize costs
   • Worked with the auctioneer of the company’s real estate and equipment to ensure nationwide exposure prior to the auction on August 8, 2011
   • During the first thirty days instituted the first of approximately 100 lawsuits against former customers refusing to pay their outstanding accounts receivable balances totaling $3.4 million; a large percentage of these claims were eventually settled through various mediation sessions overseen by a Maine Superior Court Judge
   • Managed the various administrative, financial and legal issues inherent in closing a company, such as the filing of state and federal income tax returns

Receivership terminated on June 27, 2014
[Representative Judicial Engagements]‌ 

UNITED STATES DISTRICT COURT, DISTRICT OF MAINE, CASE NO. 09-CV-627-P-S; Appointed Receiver for The Lollipop Tree, Inc., a developer and manufacturer of wet and dry baking mixes, located in Portsmouth, NH.  Motion for Appointment of Receiver filed by the senior lender.

• Appointed on December 18, 2009; took control of the company’s operations with the assistance of U.S. Marshalls
• With the support of the lender, made payroll on the afternoon of the day control was obtained despite not having sufficient cash in the bank accounts
• Provided immediate comfort to employees despite hostile interference from expelled owner, all of whom remained with the company during the six-month receivership
• Oversaw the operations of the company, allowing it to continue business with its three major customers:  Target, Williams-Sonoma and Kroger
• Developed 13-week rolling cash flow forecast, with weekly reports to lender
• Held numerous company-wide meetings with employees to comfort them through the receivership process to assure potential buyers of continuity in staff at time of purchase
• Worked with the lender and auction company to ready the company’s assets for sale as a “going concern”
• Met with potential bidders, resulting in the sale of all assets to an industry competitor from New York State who continued to operate the company in Portsmouth for about a year before consolidating operations in New York state
• Worked with the receiver’s counsel on various legal issues
• Worked with the receiver’s counsel to fend off various charges by the expelled owner and his family members
• Froze all vendor payables as of the day prior to the commencement of the receivership, and converted the company to C.O.D. with the vendors without interruption of materials and services
• Negotiated with landlords and equipment leasing companies
• Upon the sale of the company’s assets to the New York competitor, wound down the 401(k) Plan in order to limit any liability to receiver and lender from employee claims of Plan mismanagement
• Worked with IRS regarding outstanding payroll taxes as of the day prior to the commencement date of the receivership

Receivership terminated on September 13, 2010

STATE OF MAINE, ANDROSCOGGIN COUNTY SUPERIOR COURT, CIVIL ACTION, DOCKET NO. CV-06-43; Appointed Receiver for Emergency Vehicles of Maine, Inc., a manufacturer of, and repair service provider for, fire engines and other mobile emergency vehicles.  Motion for Appointment of Receiver filed by the senior lender.

• Appointed Receiver on March 10, 2006
• Immediately took control of management and developed 13-week rolling cash flow forecast to determine feasibility of continuing operations
• Assessed financial feasibility of completing several partially-completed fire engines on factory floor, by comparing remaining cash requirement to complete against remaining payments due under their respective contracts
  • Analyzed Section 2 of the Maine Uniform Commercial Code with legal counsel
• Negotiated with customers of partially-completed units
• Negotiated with competing manufacturer to assume certain contracts
• Interfaced with FEMA, who had advanced grant money to several of the company’s customers
• Worked with auction company to liquidate the company’s personal property at auction
• Negotiated with company’s landlord

Receivership terminated on August 26, 2006
[Representative Judicial Engagements]‌ 

STATE OF MAINE, PENOBSCOT COUNTY SUPERIOR COURT, CIVIL ACTION, DOCKET NO. RE-2005-44; Appointed Receiver for Worcester Energy Company, the owner of a wood-fired power plant connected to the electric grid, located in Penobscot County, ME.  Motion for Appointment of Receiver filed by the senior lender; its loan had a partial guarantee from Finance Authority of Maine.

1. • Appointed Receiver on August 1, 2005
   • Oversaw the maintenance and mothballing of this power plant
   • Resolved various creditor issues
   • Negotiated settlements with customers who purchased power and power tax credits from the debtor
   • Negotiated with various regulatory agencies, including the Massachusetts Division of Energy Resources and the Maine Department of Environmental Protection, regarding the retention of special tax credits available to debtor despite outstanding operating violations, enabling lender to receive maximum proceeds from sale of its debt
   • Negotiated with Maine Department of Environmental Protection regarding several environmental hazards for which the company had been cited; retained environmental remediation company to address certain hazards
   • Worked with auctioneer to ready the company for sale while simultaneously working with lender in an (eventually successful) effort to sell its loan to a private equity firm

Receivership terminated on March 27, 2006
[Representative Judicial Engagements]‌ 

STATE OF MAINE, WASHINGTON COUNTY SUPERIOR COURT, CIVIL ACTION, DOCKET NO. RE-04-02; Appointed Receiver for Guptill Farms, Inc.; Guptill Farms was a grower and processor of blueberries that had ceased operations; debtors were adverse to the secured parties.  Motion for Appointment of Receiver filed by the senior lender.

1. • Appointed Receiver on June 17, 2004
   • Assets consisted of blueberry fields and processing facility, all located in Washington County
   • Hired private-detective, a former Maine State trooper who headed a joint state of Maine/federal government drug task force, to assist in locating and removing assets hidden throughout Washington County
   • Successfully defended lawsuit brought against receiver by the debtors
   • Due to adversarial nature of Receivership, its duration was approximately 3 years
   • Testified in state court regarding recovery of assets

Receivership terminated in October 2007
[Representative Judicial Engagements]‌