
Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Author: Joel R. Glucksman
Date: December 9, 2015

Partner
201-896-7095 jglucksman@sh-law.comTaylor-Wharton International LLC, a major designer and manufacturer of cryogenic equipment, announced that it had filed for Chapter 11 bankruptcy protection. According to a Law 360 report, the company plans to hold an asset auction sale with Haier Medical and Laboratory Products USA Inc. serving as the stalking horse bidders for $24 million in cash, with the winning bidders assuming most of Taylor-Wharton’s debt liabilities.
In its bankruptcy petition, Taylor-Wharton stated the fact that it had not fully recovered from its previous Chapter 11 bankruptcy filing in 2009. In turn, the company could not effectively streamline its operations to achieve profitability, despite multiple new capital infusions and the sale of a portion of its subsidiaries. According to Law 360, Taylor-Wharton listed debt totals between $100 million and $500 million and assets within the same range in its court papers.
After it emerged from bankruptcy in 2010, the company operated one U.S. manufacturing plant located in Alabama, as well as subsidiary operations in China, Malaysia, Slovakia, Australia and Germany. There is no word yet on whether these overseas operations will continue after the company’s auction sale.
The company has filed the usual first-day motions, including requests to the court to continue to compensate employees and vendors. These also include motions to block utilities from halting service and to continue management of company bank accounts.
Taylor-Wharton also stated that the company intends to sell its primary manufacturing plant in Alabama in addition to other assets. Further, the company will file a motion to establish the bidding process for a stalking horse sale with Haier Medical providing the initial offer for the $24 million CryoScience division. The winning bidder will also enter an agreement to assume ownership of a portion of Taylor-Wharton’s debt load.
The firm’s objective is to sell all of its remaining assets during the bankruptcy period. This will also involve equity in the company’s foreign subsidiaries, which are not associated with Taylor-Wharton’s debt liabilities.
Further, Taylor-Wharton plans to use debtor-in-possession financing with a revolving facility up to $13.8 million. This financing will be used to maintain operations for its 164 employees.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Author: Sean M. Pena

When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Author: John D. Giampolo

For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Author: George McGowan

As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
Author: Marc J. Comer

In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
Author: George McGowan

Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
Author: Sean M. Pena
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!