PROCESSED PLASTIC COMPANY D/B/A TOOTSIE TOY

Case Highlights

• Wound down operations in a manner that did not harm customers
• Conducted auction of product lines including molds and other necessary tooling

Case Narrative

DSI was brought in as the Assignee for the Benefit of Creditors after another consulting firm’s attempt at reorganizing the business had failed.  DSI took control of the business and completed as many orders from the inventory as was possible, then marketed the business, its product lines and inventory for sale.  The equipment was liquidated via an auction and the product lines and inventory were sold at a separate public auction where competitive bids were taken. The Assignee was required to complete an extensive environmental clean up of the real estate and then sold the parcels to different purchasers.  The liquidation was successful enough to pay the secured lender in full and for a significant distribution to be made to the general unsecured creditors.