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< Return to Firm News Bankruptcy Court Lauds ST&G for Obtaining "Exceptional Results"
The Bankruptcy Court for the District of New Jersey recently recognized ST&G for achieving an "enormous success" by "quickly and effectively" obtaining more than $40 million in additional distributions for the shareholders of Trump Hotels & Casino Resorts, Inc. ("THCR"). ST&G represented the Official Committee of Equity Security Holders for THCR in its chapter 11 case. Prior to filing for chapter 11, THCR had negotiated chapter 11 plan with its bondholders and Donald Trump that would have diluted THCR's public shareholders by a 1,000-to-1 ratio, and given them only a small package of one-year warrants in return.
ST&G immediately challenged the efforts of THCR, its bondholders, and Mr. Trump to push their plan through to confirmation on an expedited basis. In opposing confirmation of the plan, ST&G took an aggressive, yet calculated stance. Through its analysis, ST&G developed legal theories that blocked confirmation of the plan, and ultimately resulted in THCR's public shareholders receiving more than $40 million dollars in additional value.
In ruling on ST&G's fee request, Bankruptcy Judge Judith H. Wizmur not only approved ST&G's standard hourly rates, but also found that, in light of the extraordinary results achieved by ST&G, a "fee enhancement," or bonus, was merited as well. In the Court's words:
Here, we have outstanding and highly skilled lawyers from ST&G [including shareholders K. John Shaffer and Christine Pajak] who have obtained an exceptional result, exceeding the reasonable expectations of the parties, and who have obtained that result efficiently, quickly and effectively.
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