Newport Beach, California (PRWEB) March 06, 2013
Irell & Manella LLP, a full service law firm with offices in Los Angeles and Newport Beach, representing the Official Committee of Unsecured Creditors (the “Committee”) in the Chapter 11 proceedings of American Suzuki Motor Corporation (“American Suzuki”), reported that the United States Bankruptcy Court (Hon. Scott C. Clarkson) confirmed American Suzuki’s plan of liquidation (the “Plan”). The Plan was recently amended to incorporate a settlement reached by Irell & Manella LLP on behalf of the Official Committee of Unsecured Creditors (the “Committee”).
American Suzuki was the exclusive United States distributor of Suzuki products, including automobiles, motorcycles, outboard engines and all-terrain vehicles. Under the Plan, American Suzuki will terminate sales of new automobiles and transfer the remainder of its business to a new entity, Suzuki Motor of America, Inc. (“SMAI”), which will become the new exclusive United States distributor of Suzuki motorcycles, outboard engines and all-terrain vehicles. Pursuant to the settlement between the Committee, American Suzuki and American Suzuki’s Japanese parent corporation, Suzuki Motor Corporation (“SMC”), SMC will guaranty a 100 percent return to settling unsecured creditors and supply additional funds to increase the expected recovery for non-settling unsecured creditors from five to 20 percent. In addition, as part of the settlement, SMC will assume liability for the $30 million claim filed by the Internal Revenue Service and the debtor’s director and officer indemnity obligations, which have a face value of $10 million.
Jeffrey M. Reisner, Alan J. Friedman, Kerri A. Lyman and Michael P. McMahon, attorneys in Irell & Manella LLP's Newport Beach-based bankruptcy practice, served as lead bankruptcy counsel to the Committee. Brad C. Hall, Ted Stenger, Michele Campbell and Kevin Chiu of AlixPartners served as the Committee’s financial advisors. Richard M. Pachulski, James I. Stang, Dean A Ziehl, Linda F. Cantor, Debra I. Grassgreen and John W. Lucas of Pachulski Stang Ziehl & Jones LLP served as lead counsel to American Suzuki. Stephen G. Morrison, Steven A. McKelvey, Jr. and George B. Cauthern of Nelson Mullins Riley & Scarborough, LLP served as special dealership counsel to American Suzuki. Cynthia A. Nelson, James Chu and Travis Kanafani of FTI Consulting served as American Suzuki’s financial advisors. Michael L. Tuchin and Lee R. Bogdanoff of Klee, Tuchin, Bogdanoff & Stern LLP served as counsel to Suzuki Motor Corporation.
The case is In re: American Suzuki Motor Corp., 8:12-bk-22808, U.S. Bankruptcy Court for the Central District of California.
Irell & Manella LLP's insolvency department represents debtors, creditors, creditors’ committees and bankruptcy trustees in legal cases throughout the United States. One of the leading law firms in the United States, Irell & Manella LLP was founded in Los Angeles in 1941. Dedicated to excellence, the firm is a full-service commercial law partnership with a professional legal staff now comprising more than 180 attorneys. For more information on Irell & Manella's full range of professional legal services, visit the firm online at http://www.irell.com.