A Fox Rothschild Financial Restructuring & Bankruptcy Team, including Michael Sweet, Gordon Gouveia, Howard Cohen and Stephanie Slater, was honored by the Turnaround Management Association Chicago/Midwest Chapter for their role in the MobiTV, Inc. Chapter 11 bankruptcy, which received the Small Turnaround of the Year Award during TMA’s Executive Speaker Forum.
The Turnaround Awards “recognize the individuals who establish effective operations, implement solid management, improve cash flow, and increase production, in addition to the other operational factors, leading to recovery of a struggling business.”The Fox team represented the official committee of unsecured creditors for MobiTV, the first company to bring live and on-demand television to mobile devices, which filed a voluntary petition on March 1, 2021.MobiTV asserted in its filings that despite growing revenue and increasing subscriber and customer bases, it incurred substantial operating losses in 2020 and its growth was materially impaired by COVID-19 and related stay-at-home orders.
MobiTV’s assets were sold through an auction in the bankruptcy case.
The Debtor’s Chapter 11 plan was confirmed in September 2021. The Fox team, working with the post-confirmation Trustee, E. Lynn Schoenmann, has secured a significant recovery for the unsecured creditors in this case where there initially appeared to be little recovery opportunity.
The Trustee was also able to secure tax refunds that increased the funds available to unsecured creditors and, in early 2022, made an interim distribution to the unsecured creditors with the expectation to make an additional meaningful distribution in late 2022 or early 2023.The team was also assisted by Fox attorneys Michael Herz, Seth Niederman, Diana McGraw, Jack Praetzellis, Elizabeth Viele and Jesse Harris.
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