July 21, 2008
Kelley Drye, representing the Official Committee of Unsecured Creditors of Verestar, Inc., et al., recently confirmed a plan of liquidation that will provide for the distribution of more than $30 million, or 46-50% on the dollar, to unsecured creditors.
Partners Eric R. Wilson and James S. Carr led the Committee's representation over the past four years, supervising a team of Kelley Drye professionals from a variety of practice groups, including bankruptcy, corporate, litigation, tax and telecommunications.
During the course of the representation, Kelley Drye addressed various regulatory matters and issues related to asset disposition, bankruptcy specific causes of action, financing and litigation of officer and director liability.
Prior to the sales of substantially all of its assets in 2005, Verestar was a leading provider of global satellite and terrestrial-based network communications solutions. Following the sales, Kelley Drye assumed primary responsibility for the handling of the bankruptcy case.
At that time, there were insufficient funds to provide a recovery to unsecured creditors and the bankruptcy estate was considered administratively insolvent. The prosecution of causes of action identified by Kelley Drye, including bankruptcy avoidance actions, claims against the purchasers of the estates' assets and American Tower Corporation (the company's parent) led to the recovery of more than $35 million.
Kelley Drye's efforts also resulted in a $1.5 billion reduction of claims against the estate.
Post-confirmation, Kelley Drye represents Verestar's liquidation trustee in distributing funds to creditors and dissolving Verestar's estate.
In addition to partners Eric R. Wilson and James S. Carr, special counsel Robert L. LeHane and Mark W. Page, and paralegal Marie Vicinanza provided significant contributions to this matter.