Press Release
Press Release
Press Contacts: Erik Cummins, Matt Hyams, Taina Rosa, Olivia Meyer
11.20.25
Pillsbury represents Partners Pharmacy Services, LLC and its affiliated debtors (collectively, the “Debtors”), a national long-term care pharmacy company, in their chapter 11 cases before Judge Christopher M. Lopez of the U.S. Bankruptcy Court for the Southern District of Texas. On October 27, 2025, Judge Lopez approved the sale of substantially all the Debtors’ assets to CS One, LLC (“CS One”), the Debtors’ pre-petition lender, DIP lender, and Stalking Horse Bidder, over the objection of the Official Committee of Unsecured Creditors (the “Committee”).
The Committee objected to CS One’s $51 million credit bid on the basis that CS One had used its position as lender to cap sale timing and funding, thereby suppressing competing bids. The Committee also moved the Court for standing to pursue recharacterization of CS One’s debt as equity. The Court heard extensive testimony from the Debtors’ investment banker (SSG Advisors, LLC), the Debtors’ Chief Restructuring Officer (Mr. Ronald M. Winters of Gibbins Advisors, LLC), and the Debtors’ Independent Manager (Mr. Harvey L. Tepner).
The Court found that the sale process was fair and conducted at arm’s length, and that CS One’s pre-petition loan was a valid debt, which CS One acquired from a third-party lender well before the filing of the chapter 11 cases. The Court denied the Committee’s motion for standing, finding no colorable claim for recharacterization and concluding that the Debtors did not unjustifiably refuse to pursue such a claim.
The Pillsbury team was led by Insolvency & Restructuring partners Patrick Potter and Dania Slim, with associates L. James Dickinson and Amy West. The Pillsbury team was supported by Corporate partner Lillian Kim, counsel Nina Bakhtina, and associate Erin Choo, and Litigation associate Roland Reimers.