Partner Phillip M. Hudson, III convinced a bankruptcy judge to authorize distribution of more than $60,0000 to three local children’s hospitals. The donated funds come from the Chapter 11 bankruptcy case of Arrow Air Holdings Corp., et al. pending in the U.S. Bankruptcy Court for the Southern District of Florida.

As counsel to the Official Committee of Unsecured Creditors and to the Official Post Confirmation Committee of Unsecured Creditors, Hudson made the unusual request that the Bankruptcy Court approve and distribute the available funds to recognized charitable organizations. “The Post-Confirmation Unsecured Creditors Committee requested the Bankruptcy Court approve donations to, among other charitable organizations, three local children’s hospitals. I wanted some good to come out of this case since none of the creditors were going to be paid out of the bankruptcy,” Hudson said.

The committee represents several thousand unsecured creditors who are owed a total of approximately $30 million dollars. Chief U.S. Bankruptcy Judge Emeritus, Jay A. Cristol, signed an order on September 19, 2006 authorizing the funds, otherwise available to unsecured creditors, be donated to, among others, the Holtz Children’s Hospital, Miami Children’s Hospital Foundation, Joe DiMaggio Children’s Hospital Foundation and the United Way for Miami-Dade County. The funds that were available were divided in quarters and each of these entities received an equal amount. Other entities also received funds based on the request to Judge Cristol. Karen Dudley, vice president of development at Miami Children’s Hospital Foundation said, “We appreciate this investment in the future of Miami Children’s Hospital and the patients and families we serve. And we appreciate the manner in which this donation was made. Mr. Hudson turned an ugly situation into one that will help the community at large.”

“Although not a large donation, the creditors and the committee made the decision to pursue this unique and positive course of action and are pleased that some good could come from the few dollars collected,” said Hudson.