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Lohan Talks Chapter 7 Bankruptcy Cases in Billboard Pro

January 9, 2024

Bankruptcy & Restructuring partner Brian Lohan was quoted in the Billboard Pro article, “Merch Company SCP Owes Millions to Clients Like Mitski, Brent Faiyaz & Brand New After Shutting Down,” which discusses an Illinois-based merch company’s recent plans to file for chapter 7 bankruptcy.

According to the article, the company, SCP, owes more than $4 million to over 300 clients. Lohan told Billboard Pro that the company’s creditors may not get more than “cents on the dollar,” because in chapter 7 bankruptcy cases, creditors do not receive full recovery. “If the labels or artists are able to get their merchandise back prior to the filing, that will help them mitigate losses going forward,” he said. “But if their merchandise has been sold by SCP prior to the filing and they are owed money on account of that inventory, or any inventory is still in possession of SCP at the time of its filing … they’re going to be standing in line as a general unsecured creditor just like everybody else that is owed money.”

Lohan added that chapter 7 bankruptcy cases can take “anywhere from months to years” to resolve. “However, even on the short end, distributions to creditors on account of their claims will take several months,” he said, noting that the process includes resolving “potential litigation against various parties” involved.

Read the full article.