Delaware Business Bankruptcy Report : Delaware Business Bankruptcy Report : Morris James LLP Lawyers & Attorneys

In re Amicus Wind Down Corporation, Case No. 11-13167 (KG) (Jointly Administered), (February 24, 2012) (C.J. Gross)

On March 17, 2008, Friendly Ice Cream Corporation (“Friendly” or “Debtors”) and Park Tysen Associates LLC (the “Over-Landlord”) entered into a lease for property (the “Over-Lease”) located at 2720 Hylan Boulevard, Staten Island, New York (the “Premises”). Subsequently, on March 28, 2008, Friendly entered into a sublease with Rappan Restaurants, Inc. (the “Subtenant”) for the Premises (the “Sublease”). The Subtenant had sole possession of the premises from the date the Sublease was executed until the opinion was issued.

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The petitions were filed on February 12 and 13, 2012.  The Debtors offered a declaration of Barry Kasoff in support of their Chapter 11 petitions. 

The cases have been assigned to Chief Bankruptcy Judge Kevin Gross.  The Debtors have filed a motion for joint administration of the cases under Case No. 12-10505 (KG). 

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On February 10, 2012, LSP Energy Limited Partnership ("LSP") and three (3) affiliated entities, LSP Energy, Inc., LSP Batesville Holding, LLC and LSP Batesville Funding Corporation   (collectively, the "Debtors") filed Chapter 11 petitions in the U.S. Bankruptcy Court for the District of Delaware.  According to the Affidavit of Thomas Favinger offered in support of the Debtors' first-day motions, LSP is the owner and operator of an  electric generation facility (the "Facility") located in Batesville, Mississippi.  The Facility and the fifty-eight (58) acre parcel of real property on which the Facility is located are asserted as LSP's principal assets.  It is asserted that LSP, while having sufficient liquidity to fund its operations in the near term, lacks sufficient liquidity to continue funding operations and also fully service secured obligations going forward.

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Industrial Enterprises of America, Inc. v. Burtis (In re Pitt Penn Holding Co., Inc.), Case No. 09-11475 (BLS) (Jointly Administered), Adv. No. 11-51868 (BLS) (January 24, 2012) (J. Shannon)

The Court was faced with numerous adversary proceedings filed on similar factual bases including, in relevant part, claims under 11 U.S.C. § 548 to recover transfers which occurred more than two years prior to the petition date.  In the Industrial Enterprises of America, Inc. v. Burtis adversary (the “Burtis Adversary”), the Court granted the motion to dismiss of two of the defendants (the “Collyer Defendants”) with respect to the § 548 claims alleged against them in light of the fact that the claims were based entirely upon transfers which occurred prior to the two-year look-back period.

Plaintiff Industrial Enterprises of America, Inc. (the “Plaintiff” or “IEAM”) filed a motion for reconsideration, arguing that the Court’s grant of the motion to dismiss was both inconsistent with the Court’s rulings in other IEAM adversaries wherein the Court equitably tolled the two-year look-back period and with the case law.  When the inconsistent rulings and grounds for the motion for reconsideration were brought to the Court’s attention at a hearing, the Court welcomed submissions from defendants in other similar pending IEAM adversaries. 

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On January 30, 2011, a group of Saab Dealers signed on to an Involuntary Chapter 11 petition against Saab Cars North America, Inc.  Most of the petitioning creditors list unreimbursed warranty obligations.  Late last year, Saab Automobile AB, Saab Automobile Tools AB, and Saab Powertrain AB filed for bankruptcy in Sweden.  At the time, according to a letter from Tim Colbeck, President and COO of Saab Cars North America, Inc. (“SCNA”), SCNA had sought to pursue an out of court solution for its North American operations.  The case has been assigned case number 12-10344.

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