Releases and Announcements
Duane Morris Contributes to Turnaround of the Year
October 18, 2010
Firm's Bankruptcy Lawyers Part of Team Recognized with Prestigious Award
CHICAGO, October 13, 2010—Duane Morris LLP is pleased to announce that the Turnaround Management Association has recognized the lawyers and advisors who reorganized Sleep Innovations Inc. with the prestigious 2010 Turnaround of the Year Award in the Large Company category. The award credits bankruptcy lawyers from Duane Morris who were among the team of advisors that turned around the manufacturer and distributor of specialty sleep products, such as foam pillows and mattresses. Awardees were honored at the 2010 TMA Annual Convention, held on October 7 at the JW Marriott Orlando Grande Lakes.
Due to the recent economic downturn, Sleep Innovations suffered a severe liquidity crisis in 2008 and was forced to file for Chapter 11 bankruptcy protection. The Duane Morris team, which consisted of partners Michael Lastowski and Rich Riley and associate Sommer Ross, handled the filing in October 2008. Sleep Innovations successfully reorganized in March 2009, at a time when reorganizations, as opposed to liquidations, were very rare. Working with the turnaround professionals, which included Richard Heller, a partner at Carl Marks Advisory Group LLC, who acted as interim CEO during the turnaround, as well as a group of lenders, the Duane Morris team aided in restructuring the company in the context of a plan of reorganization.
As a result of the group's efforts, the company's Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), a major indicator of financial performance, increased from $18.3 million in losses in 2008 to $29.2 million in gains in 2009—a nearly $48 million improvement in 12 months.
According to TMA, winners of the Turnaround of the Year awards exemplify the ability of turnaround professionals to apply unique solutions and tools to overcome complex and challenging situations. They also represent the significant results that can be achieved by using well-executed, textbook turnaround management techniques to transform a troubled company of any size in a variety of industries. The Large Company category recognizes successful engagements with revenues of $300 million or greater at the onset of the turnaround.
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