Togut, Segal & Segal Obtains Bankruptcy Court Approval of Global Settlement of Claims and Counterclaims Involving Restaurant Debtor

| Jan 26, 2021 | News & Announcements |

Earlier this month, Togut, Segal & Segal, representing Albert Togut as the chapter 7 trustee of 2070 Restaurant Group LLC and Genesis Food Group LLC, Case No. 18-12323 (Bankr. S.D.N.Y.), obtained bankruptcy court approval of a global settlement resolving all claims and counterclaims by and between the estates and other parties, including the debtors’ landlord and counterparties to a disputed contract for the sale of the debtors’ business, a restaurant in upper Manhattan.  The cases were initially filed as chapter 11 cases in 2018 and were converted to chapter 7 in 2020 following extensive litigation in bankruptcy court and in state court.  The settlement will resolve a heavily contested adversary proceeding and two ongoing state court proceedings, while also bringing much-needed cash into the estates.

In approving the trustee’s motion filed by the Togut Firm, Bankruptcy Judge James L. Garrity, Jr. applauded the Togut Firm’s efforts, noting that “Mr. Berger and Mr. Togut have a tremendous amount of experience in these types of matters, and their competency in arriving at [this settlement] and the approaches that they took is without question[,]” adding that that the Togut Firm had “come in and helped bring stability, and a way out” of a what had been a difficult case.