On August 5, 2022, Togut, Segal & Segal LLP assisted debtors JPA No. 111 Co. Ltd. and JPA No. 49 Co. Ltd., two Japanese special purposes vehicles, in obtaining an uncontested order from the U.S. Bankruptcy Court for the Southern District of New York confirming their Chapter 11 plan of reorganization. The debtors’ plan provides for payment in full of all creditors’ claims and allows the debtors’ existing equity holder, JP Lease Products & Services Co., Ltd., to retain its interests in the debtors. The plan went effective on August 5, 2022.
The Togut Firm filed the debtors’ Chapter 11 cases on December 17, 2021 and were immediately faced with a motion by the debtors’ prepetition security agent and senior secured lender to dismiss the Chapter 11 cases as having been filed in bad faith and for lack of jurisdiction. The Togut Firm assisted the debtors in defeating the motion to dismiss and thereafter obtained approval of a marketing and sale process for substantially all of the debtors’ assets. The Togut Firm advised the debtors through a successful section 363 sale process that ultimately culminated in the sale of two Airbus A350 Aircraft and certain related assets to affiliates of SVP Global. The sale closings followed a March 18, 2022 bench ruling from Bankruptcy Judge David S. Jones approving the proposed sale and a further order from Judge Jones approving a global settlement, which paved the way for a consensual sale closing and the full-pay Chapter 11 plan of reorganization.
