LOS ANGELES, July 27, 2015—Robins Kaplan LLP announced today that it has been engaged as counsel to the Official Committee of Unsecured Creditors in the bankruptcy case commenced by Local Corp. in the Central District of California (Case No. 8:15-bk-13153 SC).
Local Corp. (Nasdaq: LOCM) filed for Chapter 11 bankruptcy protection in late June and announced its intention to sell its business through a court-approved sale. Founded in 1999, the Irvine, Calif.-based company generated $83 million in advertising revenue last year and owns a portfolio of patents relating to geographically based web searches. In addition to operating its own website, Local.com, the company also syndicates its localized search capacity to more than 1,600 websites. Local Corp. has stated that it receives approximately 14 million monthly visitors, but attributes its need for bankruptcy protection to a cash shortage resulting from a drop in net revenue the past year.
In the bankruptcy, Robins Kaplan will represent an official Creditors’ Committee appointed by the Office of the United States Trustee to represent the interests of unsecured creditors in the case. The Creditors’ Committee is co-chaired by U.S. Bank, in its capacity as indenture trustee, and Adapt.tv. The Creditors’ Committee has also retained FTI Consulting, Inc. as its financial advisor.
“We’re pleased by this engagement and will aggressively represent the interests of Local Corp.’s unsecured creditors,” said Robins Kaplan partner David Shemano, lead counsel to the Creditors’ Committee. “As a result of Local Corp.’s longstanding relationships with Google and Yahoo, the company should attract interest from multiple bidders, so we hope for a full recovery for unsecured creditors through the bankruptcy sale process,” he added.
Robins Kaplan’s restructuring group is a national leader in representing creditors’ committees, as well as other constituents, including debtors, investors, lenders and indenture trustees, in corporate restructuring and business bankruptcy cases. The firm recently was engaged to represent the official committee of student creditors in the Chapter 11 bankruptcy of Corinthian Colleges, Inc., one of the nation’s largest for-profit education companies.