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News Article

Womble Carlyle’s Bankruptcy Work Earns National Accolades

February 2, 2011

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WILMINGTON, DEL.—Womble Carlyle has been named a Finalist in the 2011 Turnaround Awards, sponsored by M&A Advisor magazine, for the firm’s role in the successful going concern sale of Park Seed and Jackson & Perkins in August 2010.
 
In April 2010, Greenwood, South Carolina-based Park Seed Inc. and Jackson & Perkins Co. filed for Chapter 11 reorganization. The 142-old company is a well-known distributor of roses, seed and other gardening supplies.
 
A Womble Carlyle team led by Steve Kortanek and Todd Ross represented the Official Creditors Committee in the cases. At the outset of their work for the Committee, they brought in SSG Capital Advisors, LLC., due to the need to run a professional and highly expedited M&A process for the companies. The Womble Carlyle team advised the Committee throughout the process, with important contributions by several others in the firm, including Allen Grumbine and Rory Whelehan in Womble Carlyle’s Greenville, S.C., office. During the sale process, a competitive auction was achieved, with three serious bids for the business, followed by a spirited auction.
 
Blackstreet Capital prevailed at the auction and closed on its purchase of the company in August 2010 for nearly $12.8 million. Park Seed/Jackson & Perkins management was pleased with both the size of the purchase price, as well as the speed with which the deal was completed. The Blackstreet bid provided the most attractive offer due to its cash value, Blackstreet’s willingness to continue to use existing suppliers, Blackstreet’s commitment to retain workers, and Blackstreet’s track record in successfully turning around troubled assets. Womble Carlyle, on behalf of the Committee, supported the transaction for these reasons and advocated for its approval by the Bankruptcy Court.
 
Park Seed/Jackson & Perkins workers and the local community were certainly among the winners in the deal. As part of the purchase, Blackstreet agreed to maintain the company’s 150-employee workforce, and they also agreed to stay in Greenwood.
 
The Turnaround Awards honor the accomplishments of the nation’s top distressed investing, restructuring and turnaround M&A firms and professionals. The 2011 Turnaround Award winners will be announced March 7th.
 

This document is intended as an informational reminder and does not constitute legal advice. If you have any questions or would like to discuss a particular situation, please contact Womble Carlyle Sandridge & Rice, LLP. The purpose of this article is to provide general information about significant legal developments and should not be construed as legal advice on any specific facts and circumstances.