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Jenner & Block recently helped facilitate a $20 million acquisition by Monomoy Capital Partners, LLC of Firm client Barjan Products, LLC by employing a creative transactional strategy known as a “friendly foreclosure,” which is not presided over by a bankruptcy court.
In this instance, a group of 13 banks agreed in advance to foreclose on Barjan’s encumbered assets as permitted by Article 9 of the Illinois Uniform Commercial Code, and sell those assets directly to Monomoy.
The friendly foreclosure is similar to another rarely-used alternative to bankruptcy known as an “assignment for the benefit of creditors,” or ABC.
With annual revenues of over $140 million and facilities in Illinois, Nevada and Georgia, Barjan is the largest distributor of over 8,000 non-food general merchandise to truck stops and travel centers across America. Monomoy, founded in March, is a private equity firm that buys distressed companies.
Barjan LLC Chief Executive Officer Mark G. Essig in a press release noted that Monomoy and Barjan have collaborated to build a business program that will “reduce costs, streamline operations and continue to exceed customer expectations in all aspects of distribution and marketing to the travel center industry.”
Partners Jill Sugar Factor and Jeff J. Marwil led the Jenner & Block team representing Barjan Products in the transaction, which also included Associates Peter H. Rosenbaum and Laura A. Sakulich. Also working on the matter were Partners Geoffrey M. Davis, S. Tony Ling, Gail H. Morse, Adam Petravicius and Steven M. Siros; Of Counsel Ruth A. Schoenmeyer; and Associates Mercedes M. Davis, Dawn M. Duffy, Frank J. Eichenlaub IV, Megan R. Leger and Darren M. Mungerson.