Cases & Deals

Consumer Capital successfully preserves rights in Quiznos bankruptcy

Client(s) Consumer Capital Partners

Jones Day represents Consumer Capital Partners and certain related individuals ("Specified Litigation Parties") in their defense against threatened claims by Avenue Capital Management related to a 2012 transaction involving Quizno's restructuring. Quiznos filed a prepackaged bankruptcy plan in March of 2014, outlining its so-called Special Litigation Claims and seeking to deprive the Specified Litigation Parties of their rights to assert claims and counterclaims in the threatened litigation. The proposed plan also proposed that the claims of similarly situated parties would pass through the bankruptcy. Jones Day filed numerous objections to the prepackaged Quiznos plan on behalf of the Specified Litigation Parties with the primary focus of preserving the Specified Litigation Parties' rights and claims in the threatened litigation. Quiznos ultimately agreed to revise the plan to resolve the Specified Litigation Parties' objections. The plan became effective on July 1, 2014. Jones Day also represents Consumer Capital Partners and other Specified Litigation Parties in defending litigation commenced by Avenue Capital and Fortress Capital which is pending in the United States District Court, District of Colorado and in other litigation.

QCE Finance LLC, Case No. 14-10543 (Bankr. D. Del.)