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Specializing in insolvency and complex commercial matters since 1974

1 Global Capital, LLC and 1 West Capital, LLC- Firm Represents Official Committee of Unsecured Creditors; Confirms Chapter 11 Plan; Initial Distributions Sent

1 Global Capital, LLC and 1 West Capital, LLC (“1 Global”) filed for Chapter 11 protection on July 27, 2018.  

1 Global operated in the financial services industry, primarily by providing short term, high interest loans to small businesses across the United States.  1 Global raised capital to fund the loans through investments solicited from private individuals, many of whom used their retirement savings to invest in the companies.  In 2018, 1 Global came under the scrutiny of the Department of Justice and the Securities and Exchange Commission.  The Securities and Exchange Commission alleges that 1 Global victimized thousands of investors nationwide by fraudulently raising more than $287 million from more than 3,400 investors to fund its businesses.  Former company executives are facing criminal charges for their respective roles in the venture.  Upon the filing of the Chapter 11 cases, independent fiduciaries were appointed to evaluate and stabilize business operations and formulate a strategy for maximizing asset values. 

On September 7, 2018, the Office of the United States Trustee appointed an Official Committee of Unsecured Creditors (the “Creditors Committee”) to, among other things, represent the interests of the innocent investors, consult regarding the administration of the cases, investigate 1 Global’s conduct and business operations, and participate in formulating a Chapter 11 plan.  The Creditors Committee selected Stichter Riedel to represent it as committee counsel in the Chapter 11 cases. 

The Creditors Committee worked closely with the independent fiduciaries and professionals operating 1 Global in formulating, negotiating, and proposing a Chapter 11 Plan that was ultimately accepted by 99.7% of the 2,425 investors that voted on the proposed Plan.  On September 20, 2019, the Bankruptcy Court entered an Order Confirming the First Amended Joint Plan of Liquidation of 1 Global Capital LLC and 1 West Capital LLC under Chapter 11 of the Bankruptcy Code Proposed by the Debtors and the Official Committee of Unsecured Creditors, and the Plan became effective on November 21, 2019.  

 On December 4, 2019, just 16 months after the bankruptcy filing, the Liquidating Trustee authorized initial distributions of 40% to the holders of allowed unsecured claims.