GSC GROUP - CASE STUDY
Industry: Asset Management and Custody Banks
Transaction Type: Chapter 11 Reorganization
GSC Group, Inc. (fka “Greenwich Street Capital Partners”) made direct and fund-of-fund investments, and provided services to both pooled investment vehicles and business development companies, specializing in credit-based alternative investment strategies.
In light of a decline of investments in its funds, liquidity problems, and significantly strained investor relations, GSC Group, Inc. filed for chapter 11 bankruptcy in the Southern District of New York on August 31, 2010.
In connection with the chapter 11 filing, Emerald is currently serving as the exclusive financial advisor to the Liquidating Trust, focusing on the following action items:
- Objecting to or resolving, compromising, settling, approving, and paying claims filed against the Debtors’ Estate on a case-by-case basis
- Analyzing and recovering preference payments and other avoidable actions
- Maintaining the books, records, and cash balances while also making disbursements and pursuing other wind down activities
As a result of Emerald’s involvement, the following outcomes were successfully achieved, including:
- To date, the total claims pool was reduced by more than $7.3 million, with further near-term settlements pending.
- Emerald continues to pursue all causes of action, make additional disbursements, and wind down the Trust and all of its remaining assets.