PORTLAND, Ore. – Tonkon Torp’s Bankruptcy & Restructuring team was honored with an Atlas Award for “Ponzi Scheme Resolution of the Year” from the Global M&A Network, LLC. The award was in recognition of Tonkon Torp’s work, led by Bankruptcy & Restructuring Group Co-Chair Danny Newman, on the liquidation plan confirmed for clients Refreshing USA, Water Station Technologies, and Creative Technologies (and another 20 entities merged or substantively consolidated into the Debtors).
The Refreshing USA. liquidation was the largest chapter 11 case in the Pacific Northwest in the last several years. Adding to its complexity, the former principal, Ryan Wear, and a co-conspirator were indicted by the U.S. Department of Justice who alleged that Wear and his co-conspirator perpetrated one of the largest franchise frauds, and largest fraud on the Small Business Administration, in the history of the United States.
Despite the staggering volume and daunting complexity of the work involved, Tonkon Torp’s bankruptcy team rose to the occasion to achieve the best possible result for the Refreshing USA debtors, with 99.9% of the creditors representing 99.9% of the total debt voting in favor of the plan. As part of their work, Tonkon Torp corralled and sold 15 pieces of commercial real property; ran a sale process for vending and water machines in routes, as well as thousands more in warehouses; developed a unique process by which water station owners contributed their machines to the Debtors to sell them; merged several entities; got a summary judgment ruling for $7 million against a merchant cash advancer; merged several subsidiaries into the Debtors; negotiated settlements with various lenders; helped investigate the fraud and prove that it was a Ponzi scheme; and drafted a joint plan and disclosure statement that created a liquidating trust to pursue causes of action, including against Ponzi winners.
Joining Danny Newman on the team handling the liquidation were bankruptcy attorneys Tim Conway, Michael Fletcher, Ava Schoen, and Eric Levine, litigator Chris Pallanch, and business attorneys Rosie Fatta, Rachel Atchison, Charlie Harrell, Jarell Hunt, David Petersen, and Zack Schick.
The Atlas Award was presented at the Metropolitan Club in New York City as part of the 18th Annual Turnaround Atlas Awards Gala, featuring leading professionals across the distressed investing, restructuring, and insolvency industries.
About Tonkon Torp
Tonkon Torp LLP is a leading business and litigation law firm serving public companies, substantial private enterprises, entrepreneurial businesses, and individuals throughout the Northwest. Tonkon Torp recently celebrated its 50th year in business! See our History Timeline for more information, or visit tonkon.com.
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