Bankruptcy is the only viable path to ensure Blueworks’ debts are paid if the appeal fails, Bowers said, noting the proceedings will provide Blueworks a much-needed “breathing spell.”
“Should Hayward execute on the judgment, Hayward would effectively close the business and receive a recovery of pennies on the dollar,” Bowers said. Instead, he argued that the Chapter 11 proceedings will allow Blueworks to “maximize the value of the bankruptcy estate” and ensure customer warranty claims are fulfilled.
Blueworks Corp files for bankruptcy : Legal Fees and Representation
In addition to the bankruptcy filing, Blueworks requested $3.1 million in attorney fees for successfully defending against Hayward’s trademark infringement claims. This motion opposes Hayward’s request for $4.36 million in legal fees filed in April.
Counsel for Blueworks and Hayward did not immediately respond to requests for comment Wednesday.
Blueworks is represented in the bankruptcy case by Matthew L. Tomsic, Natalie E. Kutcher, and Ashley B. Oldfield of Rayburn Cooper & Durham PA. In the Hayward case, Blueworks is represented by Christina Davidson Trimmer and S. Alexander Long Jr. of Shumaker Loop & Kendrick LLP and Michelle C. Dunn of Platinum Intellectual Property LLP.
