Michael E. Baum, Leon N. Mayer and Kim K. Hillary File and Successfully Confirm Plan of Reorganization for Venture Technology Groups, Inc.

January, 2015

The Schafer and Weiner team helped Venture Technology Groups, Inc. (Venture), a local company distributing valves for use in the gas and oil industries and acting as a manufacturer’s representative, file a Chapter 11 bankruptcy in the Eastern District of Michigan. Venture retained S&W just before its secured lender effectively forced Venture into bankruptcy by cutting off its line of credit and continuing to collect its receivables.  S&W helped facilitate a consensual cash collateral order, allowing Venture to quickly regain access to its receivables.  The Chapter 11 filing resulted in a successfully confirmed plan of reorganization (Plan) that provided Venture with the ability to borrow funds post-confirmation on terms more favorable than market. S&W also helped restructure ownership under the Plan, so that the son of Venture’s original owner has the opportunity to regain 100% of the outstanding interests.