Togut, Segal & Segal LLP is pleased to announce that it has been recognized by The M&A Advisor for the firm’s role as co-counsel to the debtors in the sale of Rubie’s Costume Company, Inc. and its U.S. based affiliates, winner of the Distressed M&A Deal of the Year ($100mm to $250mm) at the 15th Annual Turnaround Awards. The M&A Advisor’s Turnaround Awards recognize the year’s leading distressed M&A transactions, restructuring, refinancing, products and services, firms, and dealmakers. The ceremony for the 15th Annual Turnaround Awards will be held on September 29, 2021.
The Togut Firm and Meyer, Suozzi, English & Klein, P.C. served as co-counsel to Rubie’s and its affiliated debtors, together a 65-year-old family-owned company based in Melville, New York, and the world’s largest designers, manufacturers, and distributors of costumes and related accessories. Among other things, the Togut Firm worked with the debtors’ other retained professionals to assist the debtors with selling substantially all of their assets in a section 363 sale following an expedited three-month in-court process. The sale enabled the debtors to satisfy nearly $100 million of secured debt, have the purchaser assume approximately $35 million in postpetition trade payables, and save hundreds of jobs.
Following the sale, the United States Bankruptcy Court for the Eastern District of New York confirmed a fully consensual chapter 11 plan of liquidation. Bankruptcy Judge Alan Trust called the outcome a “remarkable achievement,” and counsel for the creditors’ committee applauded the debtors in working closely and cooperatively to obtain a tremendous result for the estates.