FBT Acts as Lead Counsel in Successful Chapter 11 Proceedings of Cosmolab, Inc. and Affiliates in Delaware, and Receives Turnaround of the Year Award

Client: Cosmolab, Inc./The Specialty Packaging Group, Inc.
Open date: January 2010
Close date: December 2010
Case citation: In re The Specialty Packaging Group, Inc. et al, Case Nos. 10-10142, 10-10143, 10-10144, 10-10145, 10-10146, 10-10147
Client role: Debtor
Monetary value: $30 million

Frost Brown Todd acted as lead counsel for the Cosmolab/Specialty Packaging Holdings Chapter 11 filings in Delaware, the epicenter of most of the business bankruptcies in US.  Cosmolab and its affiliates were FDA-regulated cosmetics manufacturers with operations in multiple states. Frost Brown Todd’s representation included the restructuring of the companies over eight months, followed by the pre-negotiated bankruptcy filing, and then the sale of Cosmolab and its U.S. affiliates to German manufacturer Schwan-STABILO Cosmetics for approximately $17 million through a bankruptcy auction process, as well as the wind-up of numerous non-U.S. affiliates located in China, Hong Kong, Taiwan, the Cayman Islands, and Switzerland.

Outcome

Frost Brown Todd successfully sold the cosmetics operations to a German multinational company using the bankruptcy as a sales process, and then confirmed a plan of liquidation to deal with all of the remaining assets, achieving almost full consensus on every issue in the case. Frost Brown Todd and attorney Bobby Guy received the 2010 Turnaround of the Year Award from the Atlanta Turnaround Management Association for its work on this case.  

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