Dragich Law Firm 2021 Success Stories

In a year that had many twists and turns, The Dragich Law Firm stayed busy serving clients in the areas of corporate restructuring, business transactions and commercial litigation. As we look forward to a rewarding 2022 with our clients and colleagues, here is a quick look back at a few of the ways we helped clients overcome challenges and capitalize on opportunities in 2021. We would like to acknowledge the significant contributions of the other lawyers, consultants and other professionals who we worked alongside in these and other cases.

KLO Assignment for the Benefit of Creditors; Represented Assignee, Gene Kohut from Riveron

We represented the Assignee, Gene Kohut, in an Assignment for the Benefit of Creditors that involved the successful liquidation and wind down of a kayak manufacturing company. Our work included:

• Negotiation and resolution of outstanding A/R accounts
• Completed sale of real property for the benefit of estate
• Assisted company counsel to resolve or dismiss outstanding litigation pending against the company
• Termination of 401(k) plans and related employee benefits programs
• Completed a voluminous claims process – with payments ultimately being paid to secured creditors and applicable taxing authorities

Sakthi Federal Receivership in the Eastern District of Michigan; Represented Receiver

We represented the Court-Appointed Receiver of Sakthi Automotive Group USA, Inc., a Tier 1 automotive supplier, which previously had approximately $150 million in annual sales to customers including General Motors, Ford Motor Company and Volkswagen. Our work included:

• Completed international sale of certain equity interests in Chinese joint venture entity for $20 million; buyer was a Chinese company and also an equity owner
• Worked with the buyer to obtain new business license as required in China, as well as assisted in completing related registration tasks
• Utilized the sale proceeds to substantially reduce remaining senior secured creditor’s claim against the receivership estate

Represented E-Commerce Business as Seller in M&A Transaction

• Completed multi-million dollar asset sale of a Michigan-based e-commerce business to Illinois purchaser
• Purchase price was funded by the SBA, with a fractional amount being paid to seller via promissory note
• Assisted in the negotiation of an assignment of lease with buyer
• Negotiated a consulting agreement for Seller’s sole member to help transition the company under its new ownership
• Completed all necessary corporate governance documents to effectuate sale

Represented Debt Collection Seller in M&A Transaction

• Completed a multi-million dollar asset sale of a collection company to a private equity firm
• Negotiated consulting and employment agreements for selling shareholders
• Negotiated placement agreements with seller’s related companies with respect to certain collection accounts and referrals
• Completed all necessary corporate governance documents to effectuate sale