On April 24, 2025, following a contested confirmation hearing, the U.S. Bankruptcy Court for the District of Utah confirmed the Chapter 11 plan of liquidation of Vobev, LLC, jointly negotiated between the debtor, secured lender Ares Capital Corporation, and the Official Committee of Unsecured Creditors, represented by Lowenstein Sandler's Bankruptcy & Restructuring Department.
The debtor initially planned to sell substantially all of its assets and convert the case to Chapter 7, where general unsecured creditors were poised to receive no distribution. Lowenstein played a pivotal role by engaging in extensive, hard-fought negotiations with the debtor and Ares, and helping to reach agreement on a plan of liquidation and the creation of a liquidating trust funded by Ares to enable a potential recovery for general unsecured creditors.
The plan preserves significant causes of action for the benefit of unsecured creditors and allows for the appointment of a trustee to investigate and pursue those causes of action, from which proceeds recovered will fund distributions to unsecured creditors. The plan became effective on May 12, 2025.
Lowenstein was selected as counsel to the unsecured creditors' committee of Vobev, LLC, a beverage manufacturing company, in December 2024. The Lowenstein team included Michael S. Etkin, Bruce S. Nathan, Daniel B. Besikof, Michael Papandrea, and Carolyn M. Gauvin.