January 02, 2018

Shapiro Sher Wins Award for Reorganization of Novation Companies

The 12th Annual Turnaround Awards, to be hosted by The M&A Advisor this March, will honor a major Chapter 11 reorganization led by Shapiro Sher’s Bankruptcy Department. The list of award winners, released last week, names the Reorganization of Novation Companies as a Distressed M&A Deal of the Year.

Shapiro Sher represented Kansas City-based Novation Companies and its subsidiaries in Chapter 11 proceedings initiated in July 2016. Novation is the successor company to NovaStar Financial, a mortgage lender derailed by the subprime mortgage crisis. Facing nearly $100 million in liabilities and litigation from creditors, the company entered bankruptcy seeking to reorganize its debts and re-re-establish itself as specialty finance company. Advised by Shapiro Sher, it has achieved this goal. On June 12, 2017, the United States Bankruptcy Court in the District of Maryland confirmed the debtors’ plan of reorganization, which has allowed the former mortgage lender to emerge from bankruptcy on sound financial footing. In July 2017, Novation acquired Healthcare Staffing Inc., a healthcare staffing provider, for $24 million.

Shapiro Sher’s representation of Novation has been led by Joel I. Sher, Chairman of the Firm. The team also included attorneys Richard M. Goldberg, Anastasia L. McCusker, and Daniel J. Zeller.

Now in its 20th year, The M&A Advisor is recognized as the world’s premier leadership organization for mergers & acquisition, restructuring, and corporate finance professionals. The 12th Annual Turnaround Awards will be presented at a black-tie gala on Wednesday, March 21, 2018, at The Colony Hotel in Palm Beach, Florida. Nominations including over 250 participating companies were judged by an independent jury of industry experts. 

Shapiro Sher was founded in 1972 by Ronald M. Shapiro with the mission of providing outstanding legal counsel for Maryland businesses of all sizes. With offices in Baltimore and Washington D.C., the Firm is nationally recognized for its practices in business law, litigation, bankruptcy, and creditors’ rights.