Glenn Agre Bergman & Fuentes served as conflicts counsel to True Value Company, L.L.C. and its debtor affiliates in its Chapter 11 cases, which was filed on October 14, 2024, to effectuate a going-concern sale of substantially all assets to Do it Best Corp., the purchaser. Working alongside co-counsel Skadden and Young Conaway Stargatt & Taylor, LLP, Glenn Agre was integral in resolving disputes with lenders and securing a confirmation of the Chapter 11 plan.
A significant challenge arose from the secured lenders, including PNC Bank as an agent, who collectively held approximately $238.2 million in claims. The lenders objected to the proposed sale, alleging that it undervalued the business and would result in a more than $100 million shortfall on their claims. Glenn Agre led the litigation over these issues and helped broker negotiations, culminating in a court-approved resolution.
The final deal preserved the debtors’ going-concern value, avoided a forced liquidation, and secured $163 million in sale proceeds—bolstered by an additional $10 million in backstop protections from the Purchaser. The Court approved the sale to Do it Best Corp. and confirmed the Chapter 11 Plan on April 8, 2025. Glenn Agre continues representing the estate on post-confirmation matters.