Glacial Energy Holdings files Chapter 11

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

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).

  

Ablest, Inc. (d/b/a Select Staffing) files Chapter 11

On Tuesday, April 1, 2014, Santa Barbara, California based Ablest, Inc. d/b/a Select Staffing and its affiliated debtors filed for chapter 11 protection in Delaware.  A copy of Select Staffing's bankruptcy petition is here.  A list of the top 35 creditors was filed with the petition and may be found here. According to the petition, Select Staffing has between 10,000 and 25,000 creditors.  Select Staffing's estimated assets are listed between $100 million and $500 million with liabilities estimated between $500,000 and $1 million.  

The case has been assigned to Bankruptcy Judge Kevin Carey (lead case no. 14-10717-KJC).

Allonhill, LLC files Chapter 11 bankruptcy

On March 26, 2014, Denver, Colorado based Allonhill, LLC  sought chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware.  A copy of the petition along with other supporting documents, including a list of the creditors holding 20 of the largest unsecured claims is attached here.  According to the declaration offered in support of the petition and first day motions, the debtor is a professional services firm that provides loan due diligence and credit risk management services for institutional investors, sellers and servicers of mortgage loans.  A copy of the declaration of Margaret Sue Allon in support of the Chapter 11 petition and first day motions is attached here.  

The debtor sold substantially all of its assets to Stewart Lender Services, Inc. in August 2013.  The debtor's current business consists of managing its remaining assets, as well as managing its rights and complying with its remaining obligations under the Asset Purchase Agreement with Stewart.  Recently, in March 2014, debtor was found liable for breach of contract and fraud in an amount exceeding $25M to Aurora Commercial Corporation f/k/a Aurora Bank FSB.  Debtor has appealed this judgment.  By filing the bankruptcy petition, according to the Allon Declaration, debtor seeks to preserve the value of its assets, maximize the value of its rights under the Stewart APA, resolve issues relating to certain residual contracts and stay immediate execution of the Aurora Judgment.  

The case is no. 14-10663-KG and has been assigned to Chief Bankruptcy Judge Kevin Gross for purposes of administration.  

Simplexity, LLC and Two Affiliates File Chapter 11

Simplexity, LLC, Simplexity Services, LLC and Adeptio INPC Holdings, LLC filed chapter 11 petitions in Delaware on March 16, 2014.  As of this posting, none of the customary “first day” motions have been filed.  A copy of the petition may be found here.  Simplexity is the parent company and operator of Wirefly, an online retailer of wireless services and devices.

Immediately after the filing, a proposed class action adversary complaint alleging violations of the WARN act was filed against Simplexity, LLC on behalf of approximately 350 former employees arising from an alleged mass layoff just days before the filing.

The cases have been assigned to The Honorable Kevin Gross and are being administered as case no. 14-10569.

Quiznos Serves Up Its Pre-Packaged Bankruptcy

 On Friday, March 14, 2014, QCE Finance LLC and various affiliates filed for chapter 11 protection in Delaware.  A copy of QCE’s bankruptcy petition is attached here.

The bankruptcy was filed as a prepackaged case; a reorganization plan was filed with the petition, and solicitation of votes in favor of the plan occurred before the filing. 

The case is being jointly administered as case no. 14-10543, and has been assigned to The Honorable Peter J. Walsh.

Uranium Supplier, USEC, Inc. Files Chapter 11

Listing more than $1 billion in potential liabilities, and assets of $50 to $100 million, USEC, Inc., a global supplier of low enriched uranium for use in nuclear power plants, filed for chapter 11 protection in the Bankruptcy Court for the District of Delaware.  The case is being administered as case no. 14-10475, and has been assigned to The Honorable Christopher S. Sontchi.

A copy of the petition is attached here.  For more information about the background of this “pre-arranged” case, please consult the affidavit of John R. Castellano, attached here.

Petition Date Fixes Amount of Defendant's Subsequent New Value

 Authored by Jeffrey R. Waxman
This article was originally published in American Bankruptcy Institute Journal, Vol. XXXIII, No. 3, March 2014.

The ABI Journal published a pair of articles in the March 2012 issue addressing the U.S. Bankruptcy Court for the District of Delaware’s decision in Friedman’s Liquidating Trust v. Roth Staffing Companies LP . This article provides an update following the recent decision of the Court of Appeals for the Third Circuit affirming the decisions of the bankruptcy and district courts.

 

To view the full article, click here.

Sorenson Communications, Inc. and affiliates file pre-packaged Chapter 11 bankruptcy

On March 3, 2014, Sorenson Communications, Inc. and several affiliates filed a pre-packaged Chapter 11 case in Delaware.  A copy of the petition is attached [HERE].  A plan has been filed and the plan was solicited before the filing.  The proposed prepackaged plan provides for a new $550 million first lien term loan exist facility and potentially includes a $25 million first lien revolving credit facility. 

Debtors are providers of telecommunication products and services for hard-of-hearing and speech-impaired individuals.  The case is docketed at 14-10454, and has been assigned to Judge Brendan Linehan Shannon.  For more information about the case, a copy of the declaration filed by Scott Sorensen is attached [HERE].

Event Rentals, Inc., Nation's Largest Provider of Event Rental Products And Related Services, Seeks Shelter In Chapter 11

On February 13, 2014, Event Rentals, Inc. and various affiliates filed for bankruptcy protection under Chapter 11 of the bankruptcy code.  In part, the filings were precipitated by the economic downturn and clients’ scaleback of discretionary spending, resulting in an overcapacity in the rental market.  The debtors have filed the petition to pursue a potential going-concern sale of their businesses.  Further information about the debtors’ filing can be found in the declaration of Jeffrey M. Black, attached here.  A copy of the petition, including a list of largest creditors, can be found here.

The case has been assigned to the Honorable Peter J. Walsh, and is being jointly administered with the other debtor cases at docket no. 14-10282.