Globe Manufacturing Corp. Litigation Trust Recovers More than $35 Million in Settlement
3/11/2008
Marlborough, Massachusetts (March 6, 2008) - The Globe Litigation Trust has recovered more than $35 million through settlement of an action against various defendants.
The action, which was being pursued in the United States District Court for the District of Massachusetts, asserted claims of fraudulent transfer and breach of fiduciary duty against, among others, former shareholders, officers and directors and professionals of Globe. The claims arose out of the leveraged buy-out and recapitalization of Globe Manufacturing in July 1998.
The Globe Litigation Trust was represented by a team of attorneys from Anderson Kill & Olick, P.C.
Globe filed for bankruptcy in January 2001. The claims were assigned to the Globe Litigation Trust pursuant to the plan of reorganization of Globe Manufacturing which plan was confirmed in January 2002. Anderson Kill represented the Official Bondholders Committee in the bankruptcy case and then was retained by the Globe Litigation Trust to pursue the claims. As a result of the recovery, the Globe Litigation Trust recently made its initial distribution to beneficiaries of the Trust, comprised of pre-petition creditors of Globe.
Dennis J. Buckley, the Globe Litigation Trustee, commented, "A number of beneficiaries of the Trust have let me know that they were extraordinarily pleased with the results of the litigation. I share their sentiments wholeheartedly."
Also in connection with Anderson Kill's representation of the Trust, the United States District Court for the Northern District of Alabama in Buckley v. Carrier Corp. (N.D. Ala. Jan. 18, 2008) recently affirmed the decision of the United States Bankruptcy Court for the Northern District of Alabama granting judgment to the Globe Litigation Trust in an adversary proceeding brought against Carrier Corp. pursuant to which the Trust sought and successfully recovered more than $600,000 on a preference claim after a trial in the Bankruptcy Court. Anderson Kill attorneys represented the Trust in the Bankruptcy Court and District Court proceedings.
About Anderson Kill:
Anderson Kill & Olick, P.C. was founded in 1969 on the principles of integrity, excellence in the practice of law, and straightforward solutions to complex legal issues. Anderson Kill practices in the areas of Bankruptcy & Restructuring, Corporate & Commercial Litigation, Corporate & Securities, Employment & Labor Law, Insurance Recovery, Intellectual Property, Real Estate & Construction, Tax, and Trusts & Estates. The firm has offices in New York, Greenwich, Newark, Philadelphia and Washington, D.C.
For further information, please contact:
Stanley A. Bowker
sbowker@andersonkill.com
(212) 278-1346
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