Textile Dying, Printing, Knitting and Finishing
The assignment involved the liquidation of the debtor’s business of dying, printing, knitting and finishing of textiles. The debtor operated out of a large manufacturing facility located in the City of Vernon, CA. The assignee liquidated significant textile inventory (raw materials (grey goods and chemicals), work in process and finished goods). The assignee also liquidated all of the plant and equipment and disposed of all hazardous materials in accordance with applicable law. The liquidation was complicated by the City of Vernon, which in addition to being the local government was also the local utility. The city attempted to extract payment of a non-priority unsecured utility claims ahead of other creditors and attempted to use its police powers to lock down the site until payment was forthcoming. The assignee through counsel rebuffed the attempted coercion by city officials and successfully completed the liquidation.