Orrick Continues to be Ranked a Top Bankruptcy and Restructuring Firm by The Deal
Capping a unique bankruptcy proceeding involving a tech start-up, Orrick client Lily Robotics, Inc. went effective on September 29, 2017 with a bankruptcy plan that enabled the Company to refund tens of thousands of pre-bankruptcy customer deposits. Lily, now known as Drone LC, Inc., sought to develop a self-navigating drone with a waterproof camera; when Lily could not develop the product, despite more than 60,000 customer pre-orders, the Company filed for Chapter 11 earlier this year.
An Orrick team guided Lily through a multifaceted restructuring process that began in February 2017, when the company filed for bankruptcy protection with the goals of refunding customer deposits; selling its assets, including valuable intellectual property and customer lists; and maximizing recoveries for creditors. Ultimately, Orrick and Lily developed a liquidating plan focused on protecting its customers. Lily and the Orrick team worked with all parties in interest to form the plan that allows Lily to return funds to customers consistent with the provisions of the Bankruptcy Code. The restructuring process included securing and drafting debtor in possession financing, selling Lily’s IP assets related to the drone’s takeoff, tracking and landing technology in a §363 asset sale and coordinating the bankruptcy process with litigation initiated in California state court.
The bankruptcy proceedings attracted widespread media attention, and are expected to serve as a model for the treatment of pre-order customers in Chapter 11 cases.
The Orrick team advising Lily included John Bautista, Doug Mintz, Laura Metzger, Jennifer Asher, Peter Amend, Emin Guseynov, Nikki Mondschein, Emilio Grandio-Urrea, Monica Perrigino and Courtney Mitchell.