ReNewable Products, Inc.

Client:	ReNewable Products, Inc.
Representation:	Bankruptcy and Intellectual Property
Date:	2006 - 2007
Locations:	Delaware

Summary:

Schiff Hardin represented ReNewable Products, Inc., the North American sublicensee of several patents that were key to our client's manufacture of innovative biodegradable packaging products for the foodservice industry.

When the public licensee/sublicensor became cashless, we devised and implemented a plan to use bankruptcy as a defensive measure to avoid the termination of our client's license by the patent holder or foreclosure by the secured creditor of the debtor. Our client funded the bankruptcy filing, provided DIP financing and was the stalking horse bidder.

When it became apparent that the secured party uniquely could benefit from the $300 million in net operating loss carry forwards, we took advantage of our client's position to accomplish its objectives at lower cost. We negotiated a settlement during the sale confirmation hearing with the creditors' committee, debtor and secured party whereby our client's bid was approved as a "backup bid" to an acquisition by the secured party under a plan of reorganization. This allowed us to negotiate and document an amended sublicense with a broader geographical territory, better terms, and lower license fees, and a nondisturbance agreement with the secured party that placed the license and sublicense in a bankruptcy-remote entity upon confirmation of the plan. Our client paid millions of dollars less by forgiving its DIP loans and paying a small license "assumption fee."

In re EarthShell Corporation, case no. 07-10086 (Bankr. D. Del.)