Litigation of Magnesium Corporation of America and Renco Metals

Problem To Resolve

Hilco was hired by the trustee to provide an independent analysis and opinion of MagCorp’s and Renco Metal’s solvency as of July 1996, Oct. 1997, and Oct. 1998.

Rather than investing the proceeds in necessary environmental and production improvements, the money was funneled to Renco, which then used a portion of it to help pay for the construction of Mr. Ira Rennert’s estate in Sagaponack, L.I.

MagCorp filed for bankruptcy in 2001 and its unsecured creditors received zero value in bankruptcy.

Jason Frank, Chief Executive Officer of Hilco Corporate Finance, LLC, served as lead expert witness in this multi-million dollar lawsuit. Hilco’s team performed the solvency analysis and Jason, who lead the team, served as the trustee’s witness against defendant in the trial in which the jury ruled in favor of the trustee and awarded significant damages. A federal jury found billionaire Ira Rennert liable for looting a company to help pay for the construction of his Hamptons estate and ordered that he and his firm pay $118 million in damages plus an additional $100 million in interest (14 years' worth of unpaid interest and set a rate of 6%) as of the time of the ruling.

SOLUTION We Delivered

Developed

Fairness/Solvency Opinion

 

Testified

in Court as Lead Expert Witness

 

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