Industry

Transportation | Taxicabs

DSI'S Role

Financial Advisor to Official Creditors’ Committee

YELLOW CAB AFFILIATION, INC.

Case Highlights

  • Performed forensic accounting analysis of balances owed to/from and traced funds from its affiliated entities
  • Analyzed services provided to YCA from its affiliated entities
  • Prepared expert report and served as expert witness in Chapter 7 litigation

Case Narrative

DSI was hired by the Official Committee of Unsecured Creditors (“the Committee”) in the Yellow Cab Affiliation, Inc. (“YCA”) bankruptcy case filed in Chicago. YCA represents approximately one-quarter of the Chicago taxicabs. Yellow Group LLC owns YCA along with a number of similar and related entities. Yellow Group in aggregate represents approximately one-third of the Chicago taxicabs. Unfortunately for creditors of YCA, just a small portion of Yellow Group’s activities run through YCA and significant profits have been earned and distributions made from other Yellow Group entities in the recent past.

DSI performed analysis of balances owed to/from affiliated entities, economics of services provided to the Debtor from affiliated entities, tracing of funds from transactions with affiliated entities, and the profits of affiliated entities as a result of medallion sales. After the Chapter 11 case converted to Chapter 7, DSI served as the Financial Advisor to the Chapter 7 Trustee and later as an expert witness regarding the damages sustained by YCA in a suit filed against certain affiliated entities and directors and officers.