Elite Model Management (MM) is a modeling agency that originated in Paris in 1972.
61-565: In 2004, the agencies in New York City, Miami, Los Angeles, and Toronto separated and formed Elite Model Management North America. Elite MM is a subsidiary of Elite World S.A., whose main shareholder Silvio Scaglia controls his stake through Elite World Group (EWG), a management company where Elite MM is one of brands along with The Society Management , Women Management , Supreme Management, Elite Model Look , and Women 360. Although Elite Model Management North America and Elite World Group share
122-731: A 2005 study claimed the drop may have been due to an increase in the incorrect classification of many bankruptcies as "consumer cases" rather than "business cases". Cases involving more than US$ 50 million in assets are almost always handled in federal bankruptcy court, and not in bankruptcy-like state proceeding. The largest bankruptcy in history was of the US investment bank Lehman Brothers Holdings Inc., which listed $ 639 billion in assets as of its Chapter 11 filing in 2008. The 16 largest corporate bankruptcies as of December 13, 2011 Enron, Lehman Brothers, MF Global and Refco have all ceased operations while others were acquired by other buyers or emerged as
183-441: A Chapter 11 bankruptcy, the debtor corporation is typically recapitalized so that it emerges from bankruptcy with more equity and less debt, a process through which some of the debtor corporation's debts may be discharged. Determinations as to which debts are discharged, and how equity and other entitlements are distributed to various groups of investors, are often based on a valuation of the reorganized business. Bankruptcy valuation
244-521: A New York division under the name The Society Management (The Society, The Society Model Management, Inc.). Elite World Group, LLC ("EWG") was created in order to hold PGM's stake in Elite World SA and EWG's branch was incorporated in New York on Jan. 28, 2019. In 2019, Julia Haart was announced chief executive officer and chief creative officer of EWG which oversees Elite MM. In 2022, Paolo Barbieri
305-648: A film was broadcast by the BBC showing the President of Elite MM, Gerald Marie , offering an undercover reporter sex for money. It was later proven that some images had been manipulated and the BBC admitted that its portrayal was unfair and had to make a substantial payout to the model agency. In the wake of this controversy, Casablancas left and formed the John Casablancas Modeling and Career Center in New York. Elite World SA
366-500: A higher price for divisions or other assets than a chapter 7 liquidation would be likely to achieve. Section 362(d) of the Bankruptcy Code allows the court to terminate, annul, or modify the continuation of the automatic stay as may be necessary or appropriate to balance the competing interests of the debtor, its estate, creditors, and other parties in interest and grants the bankruptcy court considerable flexibility to tailor relief to
427-427: A plan. If the debtor proposes a plan within the 120-day exclusivity period, a 180-day exclusivity period from the date of filing for chapter 11 is granted in order to allow the debtor to gain confirmation of the proposed plan. With some exceptions, the plan may be proposed by any party in interest. Interested creditors then vote for a plan. If the judge approves the reorganization plan and the creditors all agree, then
488-404: A profit. The trustee or debtor-in-possession normally rejects a contract or lease to transform damage claims arising from the nonperformance of those obligations into a prepetition claim. In some situations, rejection can also limit the damages that a contract counterparty can claim against the debtor. Chapter 11 follows the same priority scheme as other bankruptcy chapters. The priority structure
549-418: A reorganization process for the majority of private individuals. When a business is unable to service its debt or pay its creditors , the business or its creditors can file with a federal bankruptcy court for protection under either Chapter 7 or Chapter 11. In Chapter 7, the business ceases operations, a trustee sells all of its assets, and then distributes the proceeds to its creditors. Any residual amount
610-522: A secured party with an interest in an aircraft the ability to take possession of the equipment within 60 days after a bankruptcy filing unless the airline cures all defaults. More specifically, the right of the lender to take possession of the secured equipment is not hampered by the automatic stay provisions of the Bankruptcy Code. In August 2019, the Small Business Reorganization Act of 2019 ("SBRA") added Subchapter V to Chapter 11 of
671-558: A successful reorganization and retain control of the business and increase oversight and ensure a quick reorganization. A Subchapter V case contrasts from a traditional Chapter 11 in several key aspects: it is earmarked only for the "small business debtor" (as defined by the Bankruptcy Code), so, only a debtor can file a plan of reorganization . The SBRA requires the U.S. Trustee appoint a "subchapter V trustee" to every Subchapter V case to supervise and control estate funds, and facilitate
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#1732869749694732-522: A tool for escaping labor contracts, usually 30–35% of an airline's operating cost. Every major US airline has filed for Chapter 11 since 2002. In the space of 2 years (2002–2004) US Airways filed for bankruptcy twice leaving the AFL–CIO , pilot unions and other airline employees claiming the rules of Chapter 11 have helped turn the United States into a corporatocracy . The trustee or debtor-in-possession
793-399: Is defined primarily by § 507 of the Bankruptcy Code ( 11 U.S.C. § 507 ). As a general rule, administrative expenses (the actual, necessary expenses of preserving the bankruptcy estate, including expenses such as employee wages, and the cost of litigating the chapter 11 case) are paid first. Secured creditors —creditors who have a security interest , or collateral , in
854-442: Is given the right, under § 365 of the Bankruptcy Code, subject to court approval, to assume or reject executory contracts and unexpired leases. The trustee or debtor-in-possession must assume or reject an executory contract in its entirety, unless some portion of it is severable. The trustee or debtor-in-possession normally assumes a contract or lease if it is needed to operate the reorganized business or if it can be assigned or sold at
915-403: Is often highly contentious because it is both subjective and important to case outcomes. The methods of valuation used in bankruptcy have changed over time, generally tracking methods used in investment banking, Delaware corporate law, and corporate and academic finance, but with a significant time lag. Chapter 11 retains many of the features present in all, or most, bankruptcy proceedings in
976-421: Is returned to the owners of the company. In Chapter 11, in most instances the debtor remains in control of its business operations as a debtor in possession , and is subject to the oversight and jurisdiction of the court. A Chapter 11 bankruptcy will result in one of three outcomes for the debtor: reorganization, conversion to Chapter 7 bankruptcy, or dismissal. In order for a Chapter 11 debtor to reorganize,
1037-438: Is stayed, or put on hold, until it can be resolved in bankruptcy court, or resumed in its original venue. An example of proceedings that are not necessarily stayed automatically are family law proceedings against a spouse or parent. Further, creditors may file with the court seeking relief from the automatic stay. If the business is insolvent , its debts exceed its assets and the business is unable to pay debts as they come due,
1098-464: Is the airline industry in the United States; in 2006 over half the industry's seating capacity was on airlines that were in Chapter 11. These airlines were able to stop making debt payments, break their previously agreed upon labor union contracts, freeing up cash to expand routes or weather a price war against competitors — all with the bankruptcy court's approval. Studies on the impact of forestalling
1159-685: The Elite Model Look , which was called The Look of the Year, Competition to rival its competitors Ford's Supermodel of the World Contest. The following year, the company expanded its offices in the U.S. with the formation of Elite Models Chicago, Elite Models Atlanta, Elite Models Los Angeles, Elite Models San Francisco, and Elite Models Miami. By 1986, Elite Models had twenty offices worldwide. In 1988, Elite opened offices in Milan. Nicholas Farrae later purchased
1220-502: The United States Trustee , can request the court convert the case into a liquidation under chapter 7, or appoint a trustee to manage the debtor's business. The court will grant a motion to convert to chapter 7 or appoint a trustee if either of these actions is in the best interest of all creditors. Sometimes a company will liquidate under chapter 11 (perhaps in a 363 sale), in which the pre-existing management may be able to help get
1281-513: The Asian market and awarded its Greater China rights to Michel Lu. In partnership with him they established Elite Models Hong Kong and China. In 1996, Lu went on to expand Elite MM to Singapore that served as a regional office for South East Asia. Similar to their debut in Paris, Elite swept up top local and regional talents such as Charmaine Harn, Junita Simon, Sonia Couling, and Nadya Hatagalung. In 1999,
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#17328697496941342-455: The Bankruptcy Code requires the bankruptcy court reach certain conclusions prior to confirming or approving the plan and making it binding on all parties in the case, most notably that the plan complies with applicable law and was proposed in good faith. The court must also find that the reorganization plan is feasible in that, unless the plan provides otherwise, the plan is not likely to be followed by further reorganization or liquidation. In
1403-477: The Bankruptcy Code. Subchapter V, which took effect in February 2020, is reserved exclusively for the small business debtor with the purpose of expediting bankruptcy procedure and economically resolving small business bankruptcy cases. Subchapter V retains many of the advantages of a traditional Chapter 11 case without the unnecessary procedural burdens and costs. It seeks to increase the debtor's ability to negotiate
1464-685: The Saudi billionaire arms dealer is said to have admitted to at least one such introduction, to a model who became one of his " harem wives". She said that in the early 1980s he routinely browsed photographic portfolios of young women, with his assistant "asking whom he would like to meet, and discussing meet-up fees of between $ 35,000 and $ 50,000." In the wake of the MeToo movement, the allegations have increased; as of November 2020, at least 15 women have now spoken out against Marie and are cooperating in an investigation launched by French prosecutors. Marie has denied all
1525-603: The US office of Elite. As a result of the bad publicity, the over expansion of Elite, and the loss of talents, Elite World SA filed for Chapter 11 bankruptcy in 2004. Elite Models New York City was put up for auction and bought by Florida businessman Eddie Trump for $ 4.4 million, who asked Casablancas to come back and advise him. Elite Models NY together with Los Angeles , Miami , and Toronto became Elite MM North America separate from Elite World SA. In August 2005, Elite World SA reestablished Elite MM in Singapore using it as
1586-525: The United States. It provides additional tools for debtors as well. Most importantly, 11 U.S.C. § 1108 empowers the trustee to operate the debtor's business. In Chapter 11, unless a separate trustee is appointed for cause, the debtor, as debtor in possession, acts as trustee of the business. Chapter 11 affords the debtor in possession a number of mechanisms to restructure its business. A debtor in possession can acquire financing and loans on favorable terms by giving new lenders first priority on
1647-422: The United States. Such reorganization, known as Chapter 11 bankruptcy , is available to every business , whether organized as a corporation , partnership or sole proprietorship , and to individuals, although it is most prominently used by corporate entities. In contrast, Chapter 7 governs the process of a liquidation bankruptcy, though liquidation may also occur under Chapter 11; while Chapter 13 provides
1708-614: The Wikimedia System Administrators, please include the details below. Request from 172.68.168.133 via cp1102 cp1102, Varnish XID 110286266 Upstream caches: cp1102 int Error: 429, Too Many Requests at Fri, 29 Nov 2024 08:42:29 GMT Chapter 11 Chapter 11 of the United States Bankruptcy Code ( Title 11 of the United States Code ) permits reorganization under the bankruptcy laws of
1769-611: The acquisition of a controlling stake in Elite World SA by Pacific Global Management, SARL ("PGM") (now Freedom Holding, Inc.). In 2012, Elite Models Amsterdam acquired Model Masters in Amsterdam . Model Masters is best known for representing models who win Holland's Next Top Model . With that acquisition, Elite fired Ananda Marchildon for being "too fat". The company lost a breach of contract lawsuit by Ananda Marchildon and had to pay her around €65,000 damages. In 2013, Elite World SA opened
1830-458: The agency in 1990. Elite World S.A. is the parent company of Elite Model Management (MM). The expansion of Elite Models furthered as Elite Models formed partnerships with already established agencies. In 1990, Elite Models formed a partnership with Model Management Heidi Gross in Hamburg . In 1992, Munich Models was formed and formed a partnership with Elite MM. In 1994, Elite MM sought to break into
1891-516: The allegations via his lawyers and said he intends to fight any charges laid against him. Despite this, more publications are claiming his alleged sexual misconduct was an open secret for years in the fashion industry. Gérald Marie’s contract with Elite MM ended in December 2010 and the company was sold in 2011 to its current owners Elite World Group, for whom Marie has never worked. Silvio Scaglia Too Many Requests If you report this error to
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1952-477: The bankruptcy restructuring may result in the company's owners being left with nothing; instead, the owners' rights and interests are ended and the company's creditors are left with ownership of the newly reorganized company. All creditors are entitled to be heard by the court. The court is ultimately responsible for determining whether the proposed plan of reorganization complies with bankruptcy laws. One controversy that has broken out in bankruptcy courts concerns
2013-399: The business's earnings. The court may also permit the debtor in possession to reject and cancel contracts. Debtors are also protected from other litigation against the business through the imposition of an automatic stay . While the automatic stay is in place, creditors are stayed from any collection attempts or activities against the debtor in possession, and most litigation against the debtor
2074-423: The chances of a successful outcome and sufficient debtor-in-possession financing may be unavailable during an economic recession. A preplanned, pre-agreed approach between the debtor and its creditors (sometimes called a pre-packaged bankruptcy ) may facilitate the desired result. A company undergoing Chapter 11 reorganization is effectively operating under the "protection" of the court until it emerges. An example
2135-448: The confirmation hearing, a disclosure statement must be approved by the bankruptcy court. Once the disclosure statement is approved, the plan proponent will solicit votes from the classes of creditors. Solicitation is the process by which creditors vote on the proposed confirmation plan. This process can be complicated if creditors fail or refuse to vote. In which case, the plan proponent might tailor his or her efforts in obtaining votes, or
2196-497: The creditors' rights to enforce their security reach different conclusions. Chapter 11 cases dropped by 60% from 1991 to 2003. One 2007 study found this was because businesses were turning to bankruptcy-like proceedings under state law, rather than the federal bankruptcy proceedings, including those under chapter 11. Insolvency proceedings under state law, the study stated, are currently faster, less expensive, and more private, with some states not even requiring court filings. However,
2257-406: The death of Wilhelmina Cooper , models were in a panic bouncing from agency to agency. Even the highest paid black model at the time Beverly Johnson left Elite for Ford, only to return to Elite a week later. Models such as Christie Brinkley and Anna Andersen sued Elite after they exited. In 1981, Elite Models formed a partnership with Models 1, which lasted until 1989. By 1983, Elite established
2318-444: The debtor does file a plan within the first 120 days, the exclusivity period is extended to 180 days after the order for relief for the debtor to seek acceptance of the plan by holders of claims and interests. If the judge approves the reorganization plan and the creditors all "agree", then the plan can be confirmed. §1129 of the Bankruptcy Code requires the bankruptcy court reach certain conclusions prior to "confirming" or "approving"
2379-403: The debtor must file (and the court must confirm) a plan of reorganization. In effect, the plan is a compromise between the major stakeholders in the case, including the debtor and its creditors. Most Chapter 11 cases aim to confirm a plan, but that may not always be possible. If the judge approves the reorganization plan and the creditors all agree, then the plan can be confirmed. Section 1129 of
2440-433: The debtor will be able to pay most administrative and priority claims (priority claims over unsecured claims ) on the effective date. Like other forms of bankruptcy, petitions filed under chapter 11 invoke the automatic stay of § 362. The automatic stay requires all creditors to cease collection attempts, and makes many post-petition debt collection efforts void or voidable. Under some circumstances, some creditors, or
2501-422: The debtor's property—will be paid before unsecured creditors. Unsecured creditors' claims are prioritized by § 507. For instance the claims of suppliers of products or employees of a company may be paid before other unsecured creditors are paid. Each priority level must be paid in full before the next lower priority level may receive payment. Section 1110 ( 11 U.S.C. § 1110 ) generally provides
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2562-537: The development of a consensual plan. It also eliminates automatic appointment of an official committee of unsecured creditors and abolishes quarterly fees usually paid to the U.S. Trustee throughout the case. Most notably, Subchapter V allows the small business owner to retain their equity in the business so long as the reorganization plan does not discriminate unfairly and is fair and equitable with respect to each class of claims or interests. The reorganization and court process may take an inordinate amount of time, limiting
2623-410: The exigencies of the circumstances. Relief from the automatic stay is generally sought by motion and, if opposed, is treated as a contested matter under Bankruptcy Rule 9014. A party seeking relief from the automatic stay must also pay the filing fee required by 28 U.S.C.A. § 1930(b). In the new millennium, airlines have fallen under intense scrutiny for what many see as abusing Chapter 11 bankruptcy as
2684-434: The model wars. Despite agencies like Wilhelmina Models taking part in these wars, the primary battle was between Elite Models and Ford Models . Models such as Esmé Marshall left Elite for Ford Models. Casablancas alleged that Eileen Ford was out to get him and Ford responded with a $ 32.5 million suit. Until 1977, Ford was affiliated with Elite until Elite opened up offices in New York and began stealing Ford's models. Due to
2745-405: The plan and making it binding on all parties in the case. Most importantly, the bankruptcy court must find the plan (a) complies with applicable law, and (b) has been proposed in good faith. Furthermore, the court must determine whether the plan is "feasible, " in other words, the court must safeguard that confirming the plan will not yield to liquidation down the road. The plan must ensure that
2806-412: The plan can be confirmed. If at least one class of creditors objects and votes against the plan, it may nonetheless be confirmed if the requirements of cramdown are met. In order to be confirmed over the creditors' objection, the plan must not discriminate against that class of creditors, and the plan must be found fair and equitable to that class. Upon confirmation, the plan becomes binding and identifies
2867-419: The plan is a compromise between the major stakeholders in the case, including, but not limited to the debtor and its creditors. Most chapter 11 cases aim to confirm a plan, but that may not always be possible. Section 1121(b) of the Bankruptcy Code provides for an exclusivity period in which only the debtor may file a plan of reorganization. This period lasts 120 days after the date of the order for relief, and if
2928-412: The plan itself. The plan may be modified before confirmation, so long as the modified plan meets all the requirements of Chapter 11. A chapter 11 case typically results in one of three outcomes: a reorganization; a conversion into chapter 7 liquidation, or it is dismissed. In order for a chapter 11 debtor to reorganize, they must file (and the court must confirm) a plan of reorganization. Simply put,
2989-442: The proper amount of disclosure that the court and other parties are entitled to receive from the members of the creditor's committees that play a large role in many proceedings. Chapter 11 usually results in reorganization of the debtor's business or personal assets and debts, but can also be used as a mechanism for liquidation. Debtors may "emerge" from a chapter 11 bankruptcy within a few months or within several years, depending on
3050-655: The same logo, they have separate ownership and are not part of a business network. Elite Model Management was founded in Paris in 1972 by John Casablancas (1942–2013) and Alain Kittler. Casablancas was inspired by his then-wife Jeanette Christiansen, former model and Miss Universe from Denmark , to open a model agency. Casablancas founded the model agency with his savings. Elite Model opened with several high-profile models including Ingmari Lamy ; Ann Schaufuss, Clive Arrowsmith 's girlfriend; Barry Lategna's wife, Lynn Kohlman ; Paula Brenken; and Paris Plannings Emanuelle Dano. At
3111-723: The satellite office for their new South East Asia operation. Elite Models branches in Indonesia, Malaysia, Thailand, and Philippines were also added in August 2005. In October 2005, the Elite Model Look contest was added in Singapore. By 2006, Casablancas' appointment was short-lived and Elite World SA went public on the Frankfurt Stock Exchange . In 2009, the president of Elite World SA (the parent company of Elite MM), Bertrand Hennet,
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#17328697496943172-402: The size and complexity of the bankruptcy. The Bankruptcy Code accomplishes this objective through the use of a bankruptcy plan. The debtor in possession typically has the first opportunity to propose a plan during the period of exclusivity. This period allows the debtor 120 days from the date of filing for chapter 11 to propose a plan of reorganization before any other party in interest may propose
3233-408: The time, boutique agencies in Paris and Milan fell out of favor with models due to payment issues. Models often found Parisian and Milanese model agencies holding their pay to coerce them into returning without work visas and work. British and American based chains gave models the financial security they needed. In 1977, Casablancas opened up Elite Models in New York. During the 1980s, New York endured
3294-460: The treatment of debts and operations of the business for the duration of the plan. If a plan cannot be confirmed, the court may either convert the case to a liquidation under chapter 7, or, if in the best interests of the creditors and the estate, the case may be dismissed resulting in a return to the status quo before bankruptcy. If the case is dismissed, creditors will look to non-bankruptcy law in order to satisfy their claims. In order to proceed to
3355-509: Was announced group chief executive officer of Elite World Group which oversees Elite MM, The Society Management and Women Management . Allegations of an "ingrained culture" of sexual assault and rape by Elite's male employees, especially its boss Gérald Marie , have dogged the agency for decades. In 1999, a BBC investigation filmed Marie saying he hoped to seduce the contestants at the annual Elite Model Look show, as well as assaulting an undercover journalist and offering her money for sex. He
3416-423: Was arrested on drug charges. At the same time, acquired Elite Models Copenhagen , which was founded in 1966 under the name Copenhagen Models by legendary scout Trice Tomsen and formally a licensee of Elite Models (now Elite Models Management Copenhagen ApS controlled together with its licenses by Elite Licensing Company SA owned by Elite World SA). After Tomsen decided to distance herself from the day to day work, she
3477-506: Was away on assignment, including a 15-year-old girl. Supermodel and actress Carré Otis claimed in her 2011 memoir, Beauty, Disrupted , that she was raped "countless" times in the flat by Marie starting around 1986, when she was 17. Otis and others have also claimed that rape by ancillary employees, such as hairdressers and photographers, was commonplace. In October 2020, Evangelista said: "During my relationship with Gérald Marie, I knew nothing of these sexual allegations against him, so I
3538-463: Was incorporated on Dec. 14, 1999 as an umbrella company and for licensing. In 2002, Elite MM, along with several other New York City model agencies, was sued for hundreds of millions of dollars in a class action that accused them of fixing fees for the past 30 years. The following year, Elite opened offices in Asia. At the same time, an employee was awarded $ 5.2 million in a suit concerning passive smoking in
3599-456: Was replaced by Munir Bouylud, as the new director there. Also in 2009, Elite Models London opened nearly 20 years after its first attempt to have offices in London . It was also in 2009 that Elite Models Chicago and Atlanta severed ties with Elite World SA and were renamed Factor Women. In February 2011, Elite World SA shareholders elected a new Board of Directors. The new board election follows
3660-467: Was temporarily suspended from Elite and in an interview at the time, said: "I'm destroyed ... I'm finished". But Elite countered with a libel action which was quietly settled with an apology from the BBC, who also agreed not to rebroadcast their documentary. Marie was married to Linda Evangelista between 1987 and 1993, at the time of many of the alleged offences; Marie is alleged to have raped several aspiring models in their flat while Evangelista
3721-437: Was unable to help these women. Hearing them now, and based on my own experiences, I believe that they are telling the truth. It breaks my heart because these are wounds that may never heal, and I admire their courage and strength for speaking up today." Elite's activities are also alleged to have been regularly used as a "front" for "pimping out" young models to wealthy men unconnected to the modelling industry. Adnan Khashoggi ,
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