Ballard Spahr Represents Color Spot Nurseries and Hines Growers in Going Concern Sale
Ballard Spahr corporate M&A partner Michele Rowland led a team of lawyers that advised Color Spot Nurseries and Hines Growers in the sale of substantially all of their assets to ATC Realty Nine, Inc., and Tree Town, a leading California plant nursery company, as a going concern inside Color Spot Nurseries' and Hines Growers' Chapter 11 bankruptcy cases.
Color Spot Nurseries and Hines Growers are among the nation's largest growers and distributors of ornamental and bedding plants, high-value perennials, and shrubs. They have more than 2,000 retail and commercial clients across the country.
The asset sales occurred inside the Chapter 11 bankruptcy cases filed by Color Spot, Hines Growers and their affiliates in the U.S. Bankruptcy Court for the District of Delaware. Color Spot and Hines Growers signed the Amended and Restated Asset Purchase Agreement with the buyers on August 3, 2018, and the companies successfully completed the sale on August 17, 2018.
ATC Realty Nine, Inc., will operate the color bedding, Western and Southwestern operations as a going concern, and Tree Town will operate the Northern California and Pacific Northwest operations as a going concern. Employees of Color Spot Nurseries and Hines Growers were offered employment by the buyers at closing. In addition, ATC Realty Nine, Inc., announced the appointment of Scott Zoch as the Chief Executive Officer and Rodney Omps as the Chief Financial Officer of its operations. Mr. Zoch has been with Color Spot Nurseries since 2001, and Mr. Omps has been with Color Spot Nurseries since 2006.
Ms. Rowland, based in the firm's Denver office, represents large- and middle-market companies in mergers, acquisitions, divestitures, and financings. She closed more than $1 billion in M&A and financing transactions in the last year. The Ballard Spahr team included partners John Ruppert, Alicia Clark, and Steve Suflas, and associates Rob Kaplan, Lea Phillips, Carrie Marfitano, and Laurel Roglen.
Color Spot Nurseries, Hines Growers, and their affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code on May 29, 2018, in the U.S. Bankruptcy Court for the District of Delaware and the cases are consolidated as In re: Color Spot Holdings, Inc., et al.