SulmeyerKupetz Partner Howard M. Ehrenberg Appointed Trustee of Axium International, Inc. Bankruptcy.
Axium International, Inc., one of three major companies that processed payrolls for and provided related services to production companies, studios, trade unions and other entertainment-industry clients, filed for Chapter 7 bankruptcy protection on January 8, 2008. The action was a result of primary lender Golden Tree Asset Management seizing $22 million from Axium bank accounts because the company defaulted on a $140-million loan.
The assets seizure left the company unable to honor its payroll obligations and continue to operate. Axium laid off all of its employees and closed its offices in Los Angeles, New York, Toronto and London.
"As the court-appointed Trustee of the Axium Chapter 7 bankruptcy my duty is to liquidate the company's assets in an attempt to ensure repayment of debt to its unsecured creditors," Ehrenberg said. "Axium handled approximately $3 billion last year in payroll and related services and is estimated to have assets worth more than $100 million. The sale of the company's assets, including its proprietary software program RightsMax, will be used to recoup money for creditors."
Ehrenberg was recently Trustee for the Queen's Seaport Development Inc. (QSDI), the developer which oversaw the 66-year lease of the Queen Mary and surrounding 40 acres, which filed for bankruptcy protection in March 2005. QSDI was ultimately sold for $43 million last summer at auction ensuring repayment of debt to secured creditors.
Ehrenberg is a member of the Chapter 7 Bankruptcy Panel of Trustees, appointed by the Office of the United States Trustee, and a state court receiver. He is certified as a Business Bankruptcy Law Specialist by the American Bankruptcy Board of Certification and member of the Los Angeles Bankruptcy Forum, the Financial Lawyers Conference, American Bankruptcy Institute and Council of Certified Bankruptcy Specialists. Ehrenberg is also a member of the Executive Board of the Commercial Law and Bankruptcy Section of the Los Angeles County Bar Association and a former commissioner in the City of Burbank, California.
SulmeyerKupetz is a Los Angeles-based law firm that specializes in bankruptcy, business reorganizations, litigation and commercial collections. Established in 1952, SulmeyerKupetz has vast experience representing a variety of clients in all aspects of insolvency proceedings, including out-of-court debt restructurings, negotiation and implementation of complex Chapter 11 plans, debtor-in-possession financing, acquisitions and asset sales for distressed businesses, and bankruptcy litigation. The firm represents both secured and unsecured creditors, lessors, creditors' committees, debtors, governmental entities, trustees and receivers. The firm also serves as local counsel on cases being managed outside of California. For more information, please access the company's Web site -- www.sulmeyerlaw.com.
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|Date:||Jan 14, 2008|
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