Roger Maldonado Addresses Chapter 11 Bankruptcy With WCCO-TV

In a news segment for WCCO-TV, finance and restructuring associate Roger Maldonado discussed a manufacturing plant that filed for Chapter 11 bankruptcy. “They actually have more assets than liabilities, so it looks like it was a working, successful, functioning company,” he said. “They filed this bankruptcy to deal with the mass claims against them.”

Maldonado noted, “While at first, it might seem kind of like an escape plan, it really isn’t because those claims are still there. It’s really a time-out.” He added, “Once those complaints were served, I think that’s what prompted them to say, ‘Okay, we have to deal with these 95 claims. How are we going to do that?... How do we address all these claims equitably and efficiently and make people resolve these claims?’ And the bankruptcy code provides for that.”

“Right now, [the company] and their attorneys are [likely] really focused on the sale process,” Maldonado stated. “They want to try to bring in as much value as possible, and then after that is really when they’re going to shift over to the plan and say, ‘Okay, how are we going to address all these competing interests?’”

Maldonado concluded, “By trying to do the sale process as soon as possible, that really brings some value to everyone. It’s just after that is really where things will need to be addressed in terms of the unsecured creditors, the plaintiffs.”