Morris Nichols Recognized by 2022 TMA Turnaround Awards
The Turnaround Management Association (TMA) has announced the recipients of the 2022 Turnaround and Transaction of the Year Awards. Morris Nichols has been recognized in the award category for “Small Company Turnaround/Transaction” for the restructuring transactions concerning Klausner Lumber One LLC and Klausner Lumber Two LLC.
During the economic contraction at the outset of the COVID-19 pandemic, sawmill operator and lumber distributor Klausner Lumber One LLC shuttered its Florida sawmill in March 2020. At the same time, Klausner Lumber Two LLC located in North Carolina was experiencing distress. After bringing in a team of professionals, including Asgaard Capital, Cypress Associates, Westerman Ball and Morris Nichols, both companies sought Chapter 11 protection in quick succession within minimal funding with plans to seek asset sales.
Morris Nichols, as co-counsel with Westerman Ball, represented both companies, securing DIP financing, and coordinated auctions and sales for the assets of both Debtors in excess of $140 million. After settling all claims, including intercompany claims and claims of its alleged secured creditor, Klausner Lumber One, with the assistance of all its professionals, confirmed a plan of liquidation on July 1, 2021. The plan provides a recovery to general unsecured creditors in excess of 80 cents on the dollar. Klausner Lumber Two followed with its plan of liquidation in early 2022, which became effective on August 1, 2022.
Recipients of these coveted recognitions showcase the teams of skilled turnaround professionals who come together to create value-oriented solutions in distressed situations. Since 1993, TMA has honored excellence through its annual awards program, which recognizes the most successful turnarounds and impactful transactions industrywide.
“This year’s award winners have helped companies through unprecedented challenges,” said TMA Global Chief Executive Officer Scott Y. Stuart, Esq. “As businesses continue to grapple with damage from the COVID-19 pandemic, turnaround and restructuring industry professionals are being brought in to advise and help these businesses navigate uncharted waters. We’re proud to name those who have achieved the highest levels of excellence in our field,” adds Stuart.
Award winners will be honored at The 2022 TMA Annual Conference November 2-4 in Boston, during an Awards Ceremony to be held on November 3.
The Turnaround Management Association (TMA) is a premier nonprofit serving corporate renewal and restructuring professionals worldwide. Its members include turnaround specialists, attorneys, accountants, advisors, liquidators, consultants, as well as academics, government employees, and members of the judiciary. turnaround.org
ABOUT MORRIS, NICHOLS, ARSHT & TUNNELL LLP
Recognized as Delaware’s premier law firm, Morris Nichols handles bet-the-company, high-stakes matters in the four key areas of corporate litigation, alternative entities and corporate counseling, bankruptcy and restructuring, and intellectual property litigation. The firm is regularly involved as lead counsel or co-counsel in matters of national and international significance, as well as those affecting its immediate community. morrisnichols.com