Orlando partner Elizabeth A. Green was quoted in and provided insight for The Orlando Sentinel’s three-part series on the far-reaching impact felt by the community when a local business closes its doors. The series, which began on October 3, 2010, focused on firm client Professional Engineering Consultants. Green was asked to explain some of the issues typical to insolvency cases like that of PEC, which ceased operations in February 2010.
“Green said the type of insolvency case filed by PEC, known as an ‘assignment for the benefit of creditors,’ takes place in state court and is a more-streamlined alternative for some businesses to a conventional reorganization or liquidation in U.S. Bankruptcy Court,” the article explained. “The legal retainer for such a case is about $20,000 for a company such as PEC, she said, compared with an estimated $75,000 for a regular bankruptcy.”
The article also highlighted Green’s thoughts on why it may make sense for companies to close and liquidate rather than increasing debt and depending on funds from investors or owners.
“I’m seeing people take money from their retirement plans and put it in their companies,” she said. “I could tell them that they’re putting money in—and they're not going to get it out.”
At Baker Hostetler, Green practices primarily in the areas of bankruptcy and creditors’ rights and has represented corporate debtors and secured creditors, unsecured creditors, committees, bondholders and trustees in bankruptcy cases of corporate and individual debtors.