Redacted Verified Creditor List

This is a copy of the Verified Creditor List in which addresses of non-business creditors (the majority of whom are ex-Hellerites) have been redacted.

I know that this list is a matter of public record and many have commented or emailed that I should post the entire thing since it is public record.  But paying money to download it from PACER is very different than being able to Google this information.  I do not want to place anyone – shareholder or staff member – in any danger or compromised position by posting this information.  I can only assume that unless I email each every person individually that I can’t post information to which they are entitled some level of control.

That being said, I have made my best efforts to redact all personal information and if there are errors please contact me.  And the redacting was not easy but, hey, as they say: “Mad secretarial skillz.  I haz them.”

As Mr. Sugarman has indicated in his previous email, do not email him with updates to the list.  He did indicate that if your mailing  address has changed or your email has changed, that you should communicate such information to Carol Budinger (

* * *

On a side note,  Mr. Sugarman has stated that the Dissolution Committee will verify the list of creditors against Heller’s “employment records and supplement it as necessary in a later court filing,” but do you really trust anyone on the Dissolution Committee at this point? Or at least trust them to handle a task such as keeping an updated list of employees to whom they owe money because they renegged on promises to pay WARN Act monies, accrued vacation, and more?

And then, as reported by several ex-Hellerites, Mr. Sugarman had the nerve to be rude and condescending in his emails – emails which were polite and civil in tone and merely requested information.  Basically if Mr. Sugarman is going to send out email communications under his own e-mail address then he needs to realize that he may – just might – receive replies.  That’s how email works Mr. Sugarman in case there was any confusion.

There is no reason to be rude to the very staff that worked for you especially at this time.  I highly doubt Mr. Sugarman that you are scrambling for health benefits or looking at a foreclosed mortgage.  And if one of your former underlings has the audicity to simply send you information or ask for clarification, I think it is your duty to either provide the information or pass the request on to someone who can assist.  Perhaps that isn’t in your duties as a member of the Dissolution Committee but maybe it should be.

Over and out,

Heller Drone
Cruise Director


19 Responses to “Redacted Verified Creditor List”

  1. 1 Frustrated 30 December 2008 at 5:24 pm

    I can’t open the link.

  2. 2 Thomas MacEntee 30 December 2008 at 5:28 pm

    Try again – I just made it a live link.

  3. 3 Perplexed 30 December 2008 at 6:25 pm

    Can someone please explain to me why employees who QUIT prior to the dissolution would be on this list?!

    Thank you.

  4. 4 Thomas MacEntee 30 December 2008 at 6:39 pm


    My theory is this: I bet Heller had plans for bankruptcy many, many months ago and prepared a list as part of a possible filing or some sort of contingency. That would explain why some people who quit or were terminated prior to September 26, 2008 would be on the list. It doesn’t account for why some people who have valid claims and had worked at Heller for five or more years weren’t on the list.

  5. 5 Anon 30 December 2008 at 6:52 pm

    I’m on the list as a creditor, and I quit in time to get all my wages and accrued vacation paid out. Seems ridiculous to me that I’m on the list and others with legit claims are not. I frankly don’t appreciate Heller unnecessarily sharing my contact information with the world in a public filing.

  6. 6 Rude 30 December 2008 at 6:52 pm

    Sugarman has been extremely rude in his emails. Interesting to see I’m not the only one who has experienced his rudeness.

  7. 7 Outside counsel 30 December 2008 at 6:56 pm

    One also wonders about the competence of HEWM’s outside counsel. Clearly this list contains many many errors. Not to mention their other “small” mistake– paying the banks $50m+ and then realizing — oops — maybe we didn’t need to pay them afterall. of course outside counsel relies on the information given to them by their client (here HEWM), but it is also outside counsel’s responsibility to trust BUT verify information given by the client.

  8. 8 EyeinLA 30 December 2008 at 7:08 pm

    I am so glad that enough of us emailed the Dissolution Committee that they realized they HAD a big mistake on their hands – I can confirm that I received my layoff email on 10/23 and I am definitely NOT on the list. I should be on it as I have lots and lots of unpaid accrued vacation time coming to me.

  9. 9 anon2 30 December 2008 at 7:24 pm

    After checking the list for SF secretaries, it’s noted that only 25 out of 50 secretaries are on the list. But it includes secretary supervisors that had left 6 months prior. Ok, I’ll give them the benefit of the doubt, they (Heller counsel) were in a hurry to file so they slopped this together in order to amend it later. Just make sure my name is on the list this time!

  10. 10 Hellboy 30 December 2008 at 7:49 pm

    I would be surprised if Sugarboy was anything but rude. He’s a weasel.

  11. 11 LongTimeHellerFirstTimeCaller 30 December 2008 at 10:47 pm

    Sugarman is a NOTORIOUS asshole. Unremitting and unapologetic. Famous firmwide.

  12. 12 Another Former Associate 30 December 2008 at 10:58 pm

    Keep in mind that being on the creditor list does not mean that your claim is in place. You will need to file a proof of claim to be sure that your claim gets a share. Deadline won’t be for a while yet, but it is important not to miss that deadline. I think a proof of claim form can be found at the bankruptcy court web site ( it’s at ).

    I don’t know if I am surprised that the list wasn’t better prepared or not. It appears that the DC had critical timing to make a bk filing, before the time to take a shot at avoiding secured status for the banks expired this week.

  13. 13 I dunno, I worked with him and... 30 December 2008 at 11:16 pm

    I dunno I paralegaled for Paul Sugarman on and off for many years and while he may have had a short fuse, he never lost his temper without provocation. He’s a briliant man who took on a ton of responsibility. I know that would have made me a little less tolerant of bullshit. At his best he was reasonable, prepared, gracious and kind to small animals. At his worst he was volatile, demanding and pretty sharp tongued, but I never saw him be vindictive or spiteful. And who among you would have willingly taken on the burden he has assumed under these circumstances? He had no need to, that’s for sure and I wouldn’t trade places with him for pretty much anything. But I’ll always respect him.

  14. 14 Treading Water 31 December 2008 at 12:35 am

    The Recorder today said it best when they wrote that the fact that Heller filed BK now is not as altrustic as they would like us to believe. In other words, the partners wanted to make sure their pockets were zipped up and zipped up fast!! Hence the sloppy filing just to stop the bleeding for now.

  15. 15 Another Former Associate 31 December 2008 at 2:11 am

    The filing is not altruistic. But is good for us ex-employees:

    They will will cap the 333 Bush landlord’s claim at down by $30MM from their non-bk claim. And, apparently, they have shot at making the banks lesser priority than the priority portion of our wage claims. Whatever it does for them, it is good for us as things have played out.

  16. 16 P-Owed 31 December 2008 at 10:06 am

    Another Former Associate,

    I’m with you. I have no idea whether bk is better for the employees (seems to be) but there should be more transparency and order now…which is definitely a plus.
    But the bottom line is that Heller’s ex-clients need to keep paying their bills because without a pot, there won’t be anything to divide. Hopefully Sugarman wasn’t full of b.s. when he said collections are strong and they expect to collect tens of millions more.

  17. 17 Another Unemployed ex-Hellerite 31 December 2008 at 12:40 pm

    Here’s a direct link to the proof of claim form

  18. 18 d 31 December 2008 at 3:50 pm

    Any insights from folks here on how exactly to file a proof of claim?

  19. 19 Observer 2 January 2009 at 3:02 am

    That part is not hard. I’m sure there will be fairly clear guidance posted here before long.

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