ATLANTA, Sept. 19, 2011 /PRNewswire/ -- Alexander Gallo Holdings, LLC (AGH) announced today that it has obtained U.S. Court permission to make payments to certain affiliate court reporters for work performed prior to the start of the Company's Chapter 11 restructuring.
This critical relief enables the Company to compensate hundreds of affiliate court reporters AGH uses to serve clients across the country for work performed prior to September 7, 2011, the day the restructuring commenced. Affiliate court reporters, as well as employees and staff court reporters, are already being paid for work performed on or after September 7, 2011. Payments for pre-petition amounts are scheduled to be made over the next three weeks.
"The affiliate court reporters are essential to enabling AGH to provide the service and support that our more than 10,000 law firm and corporate clients rely on," said Alexander Gallo, the Company's founder and Chief Executive Officer. "We are very pleased the Court granted our request."
AGH filed motions seeking permission to assume the contracts of its Preferred Provider Network and to pay critical affiliate court reporters shortly after the September 7, 2011 Chapter 11 filing. The requests were made because federal Chapter 11 law prohibits payment for goods and services provided prior to a Chapter 11 filing, without a Court order.
Under the terms of a Court order, affiliate court reporters must agree to continue normal terms to qualify for payment for work performed prior to September 7, 2011.
Since commencing the Chapter 11 case, AGH has received Court approval of its most critical requests, including motions to continue paying employees, 1099 court reporters and videographers; a motion to access additional financing to strengthen liquidity; a motion to continue all customer programs, including payment of refunds; and now the motions to pay affiliate court reporters for work performed prior to September 7.
AGH commenced a Chapter 11 restructuring on September 7, 2011 in order to eliminate debt, strengthen liquidity and finalize the proposed sale of substantially all of its assets to H.I.G. Capital, through its affiliate Bayside Capital. H.I.G. Capital is a leading global private investment firm with more than $8.5 billion of equity capital under management.
About Alexander Gallo Holdings, LLC
Based in Atlanta, Alexander Gallo Holdings, LLC is parent company to the nation's leading privately-owned court reporting and litigation solutions companies, Esquire Solutions and Sanction Solutions. Alexander Gallo Holdings companies offer expertise in court reporting, legal video, hosted review, electronic discovery and trial services across its 55 offices in 23 states. The Company's entrepreneurial strategies and focus on superior client service has driven its unparalleled growth since 1999. For more information, visit www.alexandergalloholdings.com.
SOURCE Alexander Gallo Holdings, LLC