RECEIVERSHIPS

CLIENT DILEMMA:
The largest workman’s compensation defense firm in Southern California suddenly found themselves unable to continue to fund their defined benefit pension plan, and they were already in default of several deferred compensation agreements. The defense firm turned to the Firm for guidance.

FIRM SOLUTION:
Mr. Campbell recommended that they enter into a receivership. At the time, the defense firm was still operating 5 offices in Southern California with locations ranging from San Diego to Ventura. Additionally, they had more than 70 employees, were handling over 2,700 active case files, trying to collect over $1,000,000 in receivables and had over $2,000,000 in assets. A receiver was appointed and Mr. Campbell acted as counsel to the receiver. The receivership successfully wound down the operations, transferred the active case files in the appropriate manner, collected the receivables, and liquidated the assets. In addition, Mr. Campbell successfully blocked the Pension Benefit Guarantee Corporation from taking all the receivership proceeds and, instead, managed to distribute almost all of the proceeds between the trade creditors and the employees.