Delaware Business Bankruptcy Report

Delaware Business Bankruptcy Report

Ambient Corporation files Chapter 11 in Delaware

Posted in Delaware Chapter 11 Filings, Judge Kevin Gross

On Monday, July 28, 2014, Massachusetts based Ambient Corporation filed for chapter 11 protection in Delaware.  Attached here is a copy of the petition that includes a list of the top 20 unsecured creditors.  According to the petition, Ambient has between 50 and 99 creditors. Ambient’s estimated assets are listed between $1 million and $10 million with liabilities estimated between $1 million and $10 million.

The debtor offered the Declaration of J. Joyce in Support of its First Day Motions and provided an organizational chart in the Exhibit A attached to the declaration. As set forth in the Joyce Declaration, Ambient has entered into a stalking horse purchase agreement with a potential purchaser, Ericsson, Inc. and intends to seek approval of bid protections and bidding procedures to complete the marketing process of the sale of its assets.

The case has been assigned to The Honorable Kevin Gross for administration (lead case no. 14-11791-KG).

Eric Monzo to Speak at the ABI’s 19th Annual Southeast Bankruptcy Workshop

Posted in Events
Monzo

Eric Monzo will be a panel member at the July 24th American Bankruptcy Institute’s 19th Annual Southeast Bankruptcy Workshop in Amelia Island, Florida.

More states are adopting asset-protection trust statutes and as a result, there is an increasing trend of cases discussing the validity of these trusts in the bankruptcy context. Mr. Monzo will be discussing these decisions and will provide practical tips on how to avoid common pitfalls relating to the creation and litigation involving such trusts, specifically Delaware domestic asset protection trusts.

Source Home Entertainment, LLC seeks Chapter 11 protection

Posted in Delaware Chapter 11 Filings, Judge Kevin Gross

On Monday, June 23, 2014, magazine publisher and distributor Source Home Entertainment, LLC and its affiliate debtors (the “Debtors”) filed for chapter 11 protection in Delaware.  The Bonita Springs, Florida company lists assets of $205 million and liabilities of $290 million.   A copy of Source Home Entertainment’s bankruptcy petition is attached here (Voluntary Petition). A list of the top 35 creditors was filed with the petition.

Debtors offer the Declaration of Stephen Dube, Source Home Entertainment, LLC’s Chief Restructuring Officer and Senior Manager of FTI Consulting, Inc.,  in support of their first day motions.  Attached here is the Declaration of Stephen Dube.  According to the Dube Declaration, the Debtors are comprised of two primary units:  (a) the distribution business, primarily operated by Source Interlink Distribution, LLC (“Source Distribution”) and (b) the retail checkout display manufacturing business (the “Retail Display Business”), which is primarily operated by Source Interlink Manufacturing LLC (“Source Manufacturing”).

According to Mr. Dube, the bankruptcy was caused, at least in part, by “the continuing fundamental technological shift away from traditional consumption of print media toward online magazines and e-book readers.”   Debtors have reached an agreement with certain lenders to sell substantially all of Source Manufacturing’s assets and other assets related to the Retail Display Business owned by the Debtors, with the remainder of the Debtors’ assets to be administrated through a chapter 11 plan of liquidation.

The case has been assigned to Bankruptcy Judge Kevin Gross (lead case no. 14-11553-KG).

American Optical Services, Inc. files Chapter 11

Posted in Delaware Chapter 11 Filings, Judge Christopher S. Sontchi

On Friday, June 20, 2014, Nevada based American Optical Services, Inc. filed for chapter 11 protection in Delaware. A copy of American Optical’s bankruptcy petition is attached here (Voluntary Petition). A list of the top 30 creditors was filed with the petition. According to the petition, American Optical has between 1,000 and 5,000 creditors. American Optical’s estimated assets are listed between $50 million and $100 million with liabilities estimated between $100 million and $500 million.

The case has been assigned to Bankruptcy Judge Christopher S. Sontchi (lead case no. 14-11528-CSS).

PSL North America seeks Chapter 11 protection in Delaware

Posted in Delaware Chapter 11 Filings, Judge Peter J. Walsh

On Monday June 16, 2014, Bay St. Louis, Mississippi based, large diameter high pressure steel pipe manufacturer PSL – North America LLC and affiliated debtor PSL USA INC. (collectively, the "Debtors") filed chapter 11 petitions in Delaware.  A copy of PSL – North America LLC’s bankruptcy petition containing a consolidated list of the largest unsecured creditors is here.   According to the petition, PSL – North America LLC estimates that it has between 100 and 199 creditors.  Its assets are estimated between $50M to $100M with liabilities estimated between $100M to $500M.

In support of their chapter 11 petitions and first day motions, Debtors offered the Declaration of Brian J. Vaill (the "Vaill Declaration").   As set forth in the Vaill Declaration (found here), Debtors’  cash and liquidity position has continued to deteriorate and Debtors’ sought to restructure their debt obligations.  Debtors have identified Jindal Tubular USA LLC as a potential "stalking horse" purchaser of substantially all of their assets in exchange for aggregate consideration of cash and certain assumed liabilities totaling approximately $100M.  

A motion to jointly administer the cases has been filed.  The cases have been assigned to Bankruptcy Judge Peter J. Walsh.  The proposed lead case number is no. 14-11477-PJW.

Natrol, Inc. files Chapter 11

Posted in Delaware Chapter 11 Filings, Judge Brendan Linehan Shannon

On June 11, 2014, California based Natrol Inc. and seven affiliated debtors filed petitions for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware.  

A copy of Natrol’s petition and the list of the creditors holding the 30 largest unsecured claims on a consolidated basis is attached here.  According to the petition, Natrol estimates that it has between 1,000 and 5,000 creditors.  Natrol estimates its assets between $100M and $500M, with liabilities between $50M to $100M.

The cases have been assigned to Bankruptcy Judge Brendan Linehan Shannon for administration and Natrol’s petition was docketed as Case 14-11446.

 

Morris James Receives Top Legal Rankings in Chambers USA 2014

Posted in Case Summaries, News

 Morris James LLPMorris James LLP is pleased to announce that thirteen attorneys in five separate practice areas have been top ranked among the leading Delaware lawyers in the 2014 edition of Chambers USA: America’s Leading Lawyers for BusinessChambers also ranked four of its practice areas as among the top practices in Delaware including Bankruptcy/Restructuring, Chancery, Intellectual Property and Labor & Employment.   Read more.

 

Universal Cooperatives, Inc. and its domestic subsidiaries file Chapter 11

Posted in Judge Mary F. Walrath

On Sunday May 11, 2014, Universal Cooperatives, Inc. and its U.S. subsidiary debtors — Universal Crop Protection Alliance, LLC, Bridon Cordage LLC, Heritage Trading Company, LLC, Agrilon International LLC and Pavalon, Inc. – filed petitions for relief under chapter 11 of title 11 of the United States Code.  A copy of Universal Cooperatives, Inc.’s bankruptcy petition may be found here.  A list of the top 30 unsecured creditors was filed with this petition.  

According to the declaration of Dennis Gyolai offered in support of the debtors’ first day motions, debtors filed the petitions in an effort to preserve and maximize the value of their business assets and estates.  A copy of the Gyolai declaration may be found here.  The debtor has obtained debtor-in-possession financing from Bank of America, debtors’ pre-petition lender.

The cases have been assigned to Bankruptcy Judge Mary F. Walrath for administration (lead case no. 14-11187-MFW).

Glacial Energy Holdings files Chapter 11

Posted in Delaware Chapter 11 Filings, Judge Christopher S. Sontchi

On Thursday, April 10, 2014, electricity and natural gas provider Glacial Energy Holdings and its affiliated debtors filed for Chapter 11 bankruptcy protection in Delaware.  A copy of Glacial Energy’s bankruptcy petition may be found here. According to the petition, Glacial Energy estimates its assets between $500 million to $1 billion with liabilities estimated to be more than $1 billion.  A consolidated list of creditors holding the largest 20 unsecured claims was filed with the petition of Gridway Energy Holdings, Inc.  A copy of Gridway Energy’s petition and list of creditors is found here.  

Debtors offer the declaration of Randy Lennan in support of their first day motions and applications.  A copy of the Lennan Declaration is attached here.  According to the Lennan Declaration, Debtors have reached an agreement with its lender, Vantage Commodities Financial Services I LLC to provide debtor in possession financing and act as the stalking horse bidder in the sale of the Debtors’ assets through an auction.

The lead case is Gridway Energy Holdings Inc., case no. 14-10833-CSS. The cases have been assigned to The Honorable Christopher S. Sontchi for administration. 

Brookstone Holdings Corp. and its affiliated debtors file Chapter 11 Bankruptcy in Delaware

Posted in Delaware Chapter 11 Filings, Judge Brendan Linehan Shannon

On Thursday, April 3, 2014, Brookstone Holdings Corp. and its affiliated debtors ("Debtors") sought chapter 11 protection in Delaware. A copy of Brookstone Holdings’s bankruptcy petition along with a list of the top 30 creditors and other supporting documents is here.

According to the petition, Brookstone has between 1,000 and 5,000 creditors. Brookstone’s estimated assets are listed between $100 million and $500 million with liabilities also estimated between $100 million and $500 million.

Debtors submitted the declaration of James M. Speltz. Brookstone Company, Inc.’s President and Chief Executive Officer, in support of their petitions and first day filings.  A copy of the Declaration of James M. Speltz in Support of Chapter 11 Petitions and First Day Pleadings may be found here.

According to the Speltz Declaration, Debtors have entered into a restructuring agreement and agreements with an affiliate of Spence Spirit Holdings, Inc. that contemplate, among other things, the filing of a Chapter 11 plan within 20 days of the bankruptcy filing.  The agreements further contemplate competitive bidding and an auction process for the right to serve as plan sponsor.  

The cases have been assigned to The Honorable Brendan L. Shannon (lead case no. 14-10752-BLS).