A closely held test equipment manufacturer, utilized by large-scale government contractors performing work for the United States Department of Defense on, among other things, fighter jets, found itself embroiled in state court minority shareholder litigation that had the prospect of generating a liability that would cripple the company. In an aggressive response to that litigation, the company retained RLT to file for Chapter 11 relief, and by proposing a plan of reorganization with the majority shareholder as the sole new capital contributor, was able to reorganize the company and effect a change in ownership rendering the shareholder litigation worthless.
