Selected Engagements:

Kmart (N.D. Ill.)  Goldberg Kohn was approached by a representative of billionaire Ronald Burkle, a holder of a substantial portion of Kmart stock, to seek the formation of an equity committee.  Although initially opposed by the U.S. Trustee and by Kmart, our firm successfully obtained the appointment of an equity committee, chaired by Mr. Burkle's representative.  Our subsequent engagement as counsel to the Equity Committee included analysis of competing securities fraud claims, participation in the development of third-party causes of action, work on a potential going-private transaction and negotiation of a dividend for equity holders as participants in a litigation trust.  In addition, as a result of the agreement of Kmart and the various other constituents regarding Kmart's enterprise value, existing shareholders whose shares were extinguished but who believed in the future of Kmart were able to acquire post-confirmation shares in the marketplace that eventually were worth more than ten times the price upon emergence.

Mercury Finance (N.D. Ill.)  At the time, Mercury Finance was one of the largest sub-prime automobile finance companies to file chapter 11.  The case was complicated by allegations of massive securities fraud claims and disruption of management under investigation for alleged financial misrepresentations.  The United States Trustee initially formed a committee consisting of equity security holders and creditors holding securities fraud claims.  Goldberg Kohn obtained a court order dissolving the blended committee and directing the appointment of an independent equity committee.  Goldberg Kohn successfully defended the creation of a separate equity committee on appeal and helped guide the equity holders to rights under a confirmed plan in respect of various litigation proceeds.  (See In re Mercury Finance Co., 224 B.R. 380 (Bankr. N.D. Ill. 1998), aff'd, 240 B.R. 270 (N.D. Ill. 1999)).