LOS ANGELES BANKRUPTCY BLOG
Weintraub & Selth, APC Confirms Chapter 11 Plan for Prudential California Real Estate Affiliates
Sep 20, 2010
On August 20, 2010, after a long battle with its largest creditor and during what is undoubtedly the most difficult real estate climate in history, Weintraub & Selth, APC, confirmed a chapter 11 plan of reorganization for its real estate brokerage client Nutec Enterprises, Inc., doing business as Prudential Real Estate Affiliates.
The creditor, who was aggressive in its collection actions sought to put the company out of business.
The client used the chapter 11 reorganization process to significantly reduce its overhead, negotiating large rent reductions and favorable terms with its franchisor. It also lowered operating costs.
The plan of reorganization also allows Nutec to pay its past due income taxes over a period of five (5) years and eliminates all but eleven percent (11%) of all other debts. The eleven percent (11%) distribution is payable over three (3) years. The case was marked by a particularly pitched battle with a former employee who had obtained a judgment.
Due to the creditor's intransigence, the judgment could not be resolved without a chapter 11 filing. As a result of the successful reorganization however, the company is now extremely well positioned to compete in this difficult real estate environment.
