Examination Completed in Anderson News, LLC Chapter 11 Proceeding; Don A. Beskrone, Esq. and Ashby & Geddes Discharged From Their Investigatory Duties

On November 2, 2011, Don A. Beskrone, Esq., the Court-appointed examiner in the chapter 11 proceeding of Anderson News, LLC, and Ashby & Geddes, P.A., Mr. Beskrone’s legal advisors, were discharged by the United States Bankruptcy Court for the District of Delaware following the completion of Mr. Beskrone’s investigation and submission of the Report of Don A. Beskrone, Esq., Examiner (the “Report”).

On May 4, 2010, the Court approved the Office of the United States Trustee’s appointment of Mr. Beskrone as Examiner and tasked him and his professionals with examining the merits of any and all claims and causes of action held by the estate of Anderson News, LLC against its insiders and affiliates.  Broad in scope, the examination included potential claims and causes of action under sections 510, 544, 547, 548, 549, and 550, as well as the potential for the recharacterization of secured claims asserted by insiders of Anderson News, LLC.  Likewise, potential claims and causes of action arising under state law, including, but not limited to, those premised on fraudulent transfer theories (actual and constructive) and breaches of fiduciary duties, were investigated.  Critical to, and underlying, the conclusions reached by Mr. Beskrone was an insolvency analysis of Anderson News, LLC performed at several points in time.

Mr. Beskrone’s Report, totaling 611 pages, was filed under seal on May 12, 2011.  The Court later allowed a fully unredacted version to be filed, a copy of which may be found here.  As set forth more fully in the Report, Mr. Beskrone and his advisors identified at least $76 million of transfers and transactions subject to potential challenge as preferential or constructively fraudulent under state and federal law.  No claims or causes of action for breaches of fiduciary duties were identified, nor was the need for recharacterization.

Mr. Beskrone’s legal investigatory team from Ashby & Geddes was comprised of Ricardo Palacio, Richard L. Renck, Catherine A. Gaul, Andrew D. Cordo, Benjamin Wilson Keenan, Karen B. Skomorucha, and F. Troupe Mickler IV.  In addition to Ashby & Geddes, Mr. Beskrone was advised by a team from FTI Consulting, Inc., led by Christopher R. LeWand.