On January 11, 2017, the United Stated Bankruptcy Court for the Eastern District of Pennsylvania entered an order confirming the Chapter 11 Plan of Reorganization of the Firm’s client, ColdEdge Technologies, Inc., after a lengthy bankruptcy proceeding.
ColdEdge was formed in 2008 and provides cryogenic equipment for use in the research laboratory setting. Shortly after opening for business, it was the subject of a suit claiming misappropriation of trade secrets. That claim ultimately resulted in an adverse verdict as well as injunctive relief. ColdEdge was able to continue in business and persevered despite the ruling and the hurdles it represented. While it appealed some of the rulings against it, the company operated profitably in Chapter 11. Once all appeals were concluded, the company proposed a plan to its creditors which will provide a substantial repayment and certainly more than if the company had been liquidated. In addition, the company’s employees will retain their jobs and the company will continue to contribute to the economy of the region.
“Throughout a very long and difficult legal struggle, Doug and his team at Fitzpatrick Lentz & Bubba, P.C. skillfully guided ColdEdge to the final resolution of this legal matter. Without their expert hard work we would have simply had to close our company and lose everything we had worked very hard for,” said the company’s President, Terry Rufer.
Doug Smillie represented the company in its reorganization efforts, which culminated in the confirmed plan. “Confirming a plan in Chapter 11, particularly one that it not a liquidating plan, is a difficult endeavor. In most cases, the keys to success include building trust with the disparate creditor constituents and making a reasonable assessment of the business’ financial viability,” said Smillie.