On September 9, 2025, the Bankruptcy Court for the Eastern District of Washington entered an order confirming the plan of liquidation Tonkon Torp, led by new bankruptcy practice group Co-Chair Danny Newman, filed for clients Refreshing USA, Water Station Technologies, and Creative Technologies (and another 20 entities that were merged or substantively consolidated into the Debtors). The successful plan confirmation was achieved less than one year after Tonkon Torp was retained by client Eric Camm at Turning Point Strategic Solutions, who was appointed the receiver over the Refreshing entities in Washington State Court before the bankruptcy filing.
The Refreshing USA, et. al. liquidation is 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 allege that Wear and his co-conspirator perpetrated one of the largest franchise frauds, and largest fraud on the Small Business Administration (who backed most of the loans made to machine owners/franchisees), in the history of the United States. The Confirmation Order includes factual findings and legal conclusions that the Debtors and their affiliates operated a Ponzi scheme that raised and squandered over $400 million.
Despite the staggering volume and daunting complexity of the work involved, Tonkon Torp’s bankruptcy team, led by partner Danny Newman and supported by many colleagues in both the litigation and business departments, expertly 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, consensual 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 creates a liquidating trust to pursue causes of action, including against Ponzi winners.
Joining Danny Newman on the team handling this work was bankruptcy attorneys Tim Conway, Michael Fletcher, Ava Schoen, and Eric Levine, litigators Chris Pallanch and Rosie Fatta, and business attorneys Rachel Atchison, Charlie Harrell, Jarell Hunt, David Petersen, and Zack Schick, as well as a group of top-notch Tonkon Torp paralegals and support staff.
Tonkon Torp’s client, Brian Weiss, has been appointed the Liquidating Trustee. Tonkon Torp will continue to act as general and bankruptcy counsel to the Trustee and the Liquidation Trust to run the claims administration and objection process and to pursue certain claims and causes of action against third parties.
