CERTIFIED PUBLIC ACCOUNTANTS
 
FRAUD EXAMINERS  
 
RESTRUCTURING ADVISORS

 

Creditor

Ultimate Acquisition Partners, LP

Ultimate Acquisition Partners, LP

Ultimate Acquisition Partners, L.P. (UAP) was a consumer electronics company, and retail distributer of home entertainment and consumer electronics products. UAP was incorporated in 2005 and based in Thornton, CO, for the purpose of acquiring the Ultimate Electronics chain out of Bankruptcy. Since then UAP, doing business as Ultimate Electronics, owned and operated 45 retail locations in 15 states. In January, 2011, UAP filed for Chapter 11 bankruptcy protection. Shortly thereafter, on May 3, 2011, the case was converted to Chapter 7.

The assets available to the trustee in UAP were primarily Preferences and Vendor Credits.

PREFERENCES : The Trustee and his professionals evaluated the 90 day transfers of UAP, and identified 207 matters to pursue. 131 Adversary cases were filed, seeking gross preferences of $104,753,015.74. In addition to the adversary cases filed, an additional $4,382,505.47 was pursued through 76 demand letters. To date, the Trustee has collected 12,117,110.30 through adversary cases and demand letters. All but two matters have been resolved and closed. These two matters involve vendors who have filed their own Bankruptcy petitions, and for whom the estate has obtained judgments against.

VENDOR CREDITS: The Trustee and his professionals have also evaluated credits earned from vendors through various incentive programs. Overall, there were 36 vendors from whom UAP earned incentives. Overall, these demands were for a combined gross amount of $9,146,707.28. To date, the estate has recovered $1,217,228.84 in vendor credits, as well as significant reductions in outstanding claims from those vendors. There are currently pending settlements which could provide an additional $150,000 to be collected

With the exception of the two judgments obtained through adversary actions, all other significant assets have been fully administered, resulting in additional recoveries of approximately $4.2 million from various actions including:

  • Liquidation of various bank accounts, escrow accounts, and credit card accounts (732,652.80)
  • Collection of Accounts Receivables (99,553.03)
  • Refunds and Collection of Security Deposits & Merchant Deposits (2,820,015.76)
  • Sale of real estate (265,291.08)
  • Sale of De Minimis Assets (35,980.00)
  • Sale of interest in Class Action Suits from the LCD Anti-Trust Lawsuits (252,641.92)

The Trustee also continues to evaluate potential sales of its interest in other Anti-Trust lawsuits, in particular the Visa-MasterCard matter, which should be noticed for sale shortly

Professional Fees - Outstanding Orders:

To date, there are two approved Fee applications outstanding, due to Pachulski, Stang, Ziehl & Jones LLP:

  • 11th Interim Fee Application $ 39,484.60 ($109.00 is for reimbursement of expenses)
  • 12th Interim Fee Application $ 161,962.33 ($3,044.08 is for reimbursement of expenses)