Cullen and Dykman Obtains Substantial Benefits for Creditors in Peekay Boutiques Bankruptcy ProceedingDecember 1, 2017
Cullen and Dykman, led by S. Jason Teele, Nicole Stefanelli and Bonnie Pollack, successfully concluded its representation of the Official Committee of Unsecured Creditors in the Chapter 11 case of Peekay Boutiques, Inc. and related entities in the United States Bankruptcy Court for the District of Delaware. Peekay is a leading operator of sexual health and wellness retail locations in the Southern and Western United States. In the Peekay case, the Debtors sold their assets to an affiliate of Peekay’s senior secured lenders for $30,000,000, leaving unsecured creditors deeply subordinated and out of the money. Cullen and Dykman’s efforts on behalf of the Committee resulted in an agreement to pay unsecured creditors a portion of their claims over a four-year period. The sale and the settlement of the unsecured creditor claims were effectuated through a chapter 11 plan which was confirmed by the Bankruptcy Court on November 15, 2017. The sale closed on November 22, 2017.