Delaware Business Bankruptcy Report

Delaware Business Bankruptcy Report

Category Archives: Case Summaries

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Delaware USDC Rejects Chapter 7 Trustee’s Request for Direct Appeal to Third Circuit

Posted in Adversary Proceedings, Appeals, Avoidance Actions, Case Summaries, Judge Leonard P. Stark, New Value, Preferences, United States District Court - District of Delaware
In the on-going saga of the Conex v. Car-Ber Testing, Inc. adversary proceeding (see our prior post here), Judge Leonard P. Stark, of the United States District Court for the District of Delaware, denied the Chapter 7 Trustee’s request to allow a direct appeal to the Third Circuit Court of Appeals of the Bankruptcy Court’s… Continue Reading

Streetwear Company, Karmaloop, Inc., Files for Chapter 11 Protection

Posted in Delaware Chapter 11 Filings, Delaware Chapter 11 News, Judge Kevin Gross, News, United States Bankruptcy Court - District of Delaware
On March 23, 2015, Karmaloop, Inc., and one of its affiliates, KarmaloopTV, Inc., filed voluntary petitions under chapter 11 of the Bankruptcy Code in Delaware.  Karmaloop is based in Boston Massachusetts.  The cases are docketed as case 15-10635, and have been assigned to The Honorable Kevin Gross. The Declaration of Brian L. Davies, Jr. was filed in… Continue Reading

USDC For Delaware Affirms Bankruptcy Court’s Denial Of Derivative Standing

Posted in Adversary Proceedings, Appeals, Avoidance Actions, Case Summaries, Judge Leonard P. Stark, United States District Court - District of Delaware
On March 13, 2015, the United States District Court for the District of Delaware, in the case of Walnut Creek Mining Company v. Cascade Investment, LLC, Civ. No. 14-738-LPS (In re Optim Energy, LLC, Bankr. Case No. 14-10262-BLS), affirmed an order of the United States Bankruptcy Court for the District of Delaware which denied derivative… Continue Reading

USA Synthetic Fuel Corporation Files Bankruptcy; Will Pursue A Sale

Posted in Delaware Chapter 11 Filings, Delaware Chapter 11 News, Judge Mary F. Walrath, News, United States Bankruptcy Court - District of Delaware
On March 17, 2015, following the lead of Quicksilver Resources Inc., USA Synthetic Fuel Corporation filed its own voluntary chapter 11 case in Delaware.  A copy of the petition is here.  The case is docketed as case no. 15-10599, and has been assigned to The Honorable Mary F. Walrath. The Declaration of Dr. Steven C.… Continue Reading

Four Non-Core Matters and A RICO Claim Don’t Justify Immediate Withdrawal of Reference, USDC Rules

Posted in Adversary Proceedings, Case Summaries, Core/Non-Core, Judge Leonard P. Stark, United States District Court - District of Delaware
On March 12, 2015, Judge Leonard P. Stark, of the United States District Court for the District of Delaware denied a defendant’s motion to withdraw the reference from the Bankruptcy Court. In the case of Richard W. Barry, as Chapter 11 Trustee v. Santander Bank, N.A., Civ. No. 14-677-LPS, Adv. Pro. No. 14-50020, (In re Liberty… Continue Reading

The Standard Register Company Files Bankruptcy

Posted in Delaware Chapter 11 Filings, Delaware Chapter 11 News, Judge Brendan Linehan Shannon, News, United States Bankruptcy Court - District of Delaware
On March 12, 2015, The Standard Register Company, based in Ohio, and several affiliates filed a voluntary chapter 11 bankruptcy petition in Delaware.  The case has been docketed as case no. 15-10541, and has been assigned to the Honorable Brendan Linehan Shannon. In support of the filing, the company has filed the Declaration of Kevin Carmody. … Continue Reading

Allied Nevada Gold Corp. Files For Chapter 11 Bankruptcy Protection

Posted in Delaware Chapter 11 Filings, Delaware Chapter 11 News, Judge Mary F. Walrath, News, United States Bankruptcy Court - District of Delaware
On March 10, 2015, Allied Nevada Gold Corp. and thirteen (13) affiliates filed voluntary chapter 11 petitions in Delaware.  The petition lists approximately $941.2 million in total assets and $663.7 million in total debts.  The case has been docketed as case no. 15-10503, and has been assigned to The Honorable Mary F. Walrath. According to the… Continue Reading

Chromcraft Revington, Inc. and Sport-Haley Holdings, Inc. file Chapter 11

Posted in Delaware Chapter 11 Filings, Delaware Chapter 11 News, Judge Kevin Gross
On March 5, 2015, Chromcraft Revington, Inc.(“Chromcraft”) and Sport-Haley Holdings, Inc. (“Sport-Haley”) filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code.  Copies of the petitions are linked here: Chromcraft petition and Sport-Haley petition. Debtors offer the Declaration of Samuel A. Kidston in support of their petitions.  According to Mr. Kidston’s Declaration, Debtors seek to wind down… Continue Reading

ProNerve Holdings, LLC, A Colorado Based Provider of Intraoperative Neurophysiologic Monitoring (IOM) Files for Chapter 11 Protection

Posted in Delaware Chapter 11 Filings, Delaware Chapter 11 News, Judge Kevin J. Carey, United States Bankruptcy Court - District of Delaware
On February 24, 2015, ProNerve Holdings, LLC and 8 affiliated companies filed voluntary chapter 11 petitions in Delaware.  The case is docketed at 15-10373, and has been assigned to The Honorable Kevin J. Carey. According to the Declaration of George D. Pillari filed in support of the petition, the Debtors are headquartered in a suburb of Denver,… Continue Reading

Allen Systems Group, Inc. and Certain Affiliates File a Prepackaged Chapter 11 Case

Posted in Delaware Chapter 11 Filings, Judge Kevin J. Carey, News, Plans, United States Bankruptcy Court - District of Delaware
On February 18, 2015, Allen Systems Group, Inc., ASG Federal Inc. and Viasoft International, LLC all filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code.  The cases are docketed at 15-10332, and have been assigned to The Honorable Kevin J. Carey. As prepackaged cases, the Debtors have, simultaneously with their petitions,… Continue Reading

Saladworks, LLC files Chapter 11 in Delaware

Posted in Delaware Chapter 11 Filings, Judge Laurie Selber Silverstein, United States Bankruptcy Court - District of Delaware
On February 17, 2015, Saladworks, LLC filed a chapter 11 bankruptcy case in Delaware.  The case has been docketed as case no. 15-10327 and has been assigned to The Honorable Laurie Selber Silverstein. The petition lists assets and liabilities between $10 million and $50 million.  According to the Declaration of Paul Steck (the “Steck Declaration”), President and member… Continue Reading

U.S. District Court of Delaware Reverses and Remands A Bankruptcy Settlement Effected With No Notice

Posted in Adversary Proceedings, Appeals, Avoidance Actions, Case Summaries, Judge Leonard P. Stark, Releases, Settlements, United States District Court - District of Delaware
On January 16, 2015, Chief Judge Leonard P. Stark of the United States District Court for the District of Delaware issued an opinion that reversed an order of the Delaware Bankruptcy Court that approved a settlement, and remanded to the Bankruptcy Court for further proceedings. In the underlying bankruptcy case, debtor ManagedStorage International, Inc., and certain… Continue Reading

Altegrity, Inc., Global Provider of Risk Solutions, Files Chapter 11

Posted in Delaware Chapter 11 Filings, Judge Laurie Selber Silverstein, News, United States Bankruptcy Court - District of Delaware
Altegrity, Inc., who bills itself on its website as “The world’s leading brands in risk solutions, security, ediscovery, data recovery and employment screening,” filed for chapter 11 protection in Delaware on February 8, 2015.  It was joined by 37 of its affiliates.  The bankruptcy case is docketed as case no. 15-10226, and has been assigned… Continue Reading

RadioShack Corporation Files Its Long-Awaited Bankruptcy Case

Posted in Delaware Chapter 11 Filings, Judge Kevin J. Carey, United States Bankruptcy Court - District of Delaware
RadioShack Corporation and 17 of its affiliates have filed its chapter 11 case in Delaware.  The case is docketed as Case No. 15-10197, and is currently assigned to The Honorable Kevin J. Carey. The long-anticipated petition includes a list of the 50 largest creditors.  Wilmington Trust is indenture trustee for some $329 million in debt.  In… Continue Reading

Women’s Clothing Retailer, Cache Inc., Seeks Protection Inside Chapter 11

Posted in Delaware Chapter 11 Filings, Judge Mary F. Walrath, News, United States Bankruptcy Court - District of Delaware
On February 4, 2015, women’s clothing retailer, Cache Inc., filed a chapter 11 bankruptcy case in Delaware.  The petition lists the top 30 unsecured creditors.  Two of the largest creditors are landlords Simon Property Group and General Growth Properties.  Reports indicate that Cashe is in default of about 50 of their retail leases.  According to… Continue Reading

The New Delaware Bankruptcy Local Rules Are Here!

Posted in Local Rules, Rules, United States Bankruptcy Court - District of Delaware
The 2015 edition of the Local Rules of Bankruptcy Practice and Procedure of the United States Bankruptcy Court for the District of Delaware are now live on the Delaware Bankruptcy Court’s website.  The new local rules became effective on February 1, 2015. Among other changes, significant revisions appear in the rules relating to appeals.  Provision… Continue Reading

Delaware Bankruptcy Court Grants Summary Judgment Based On Ordinary Course of Business Defense

Posted in Case Summaries, Judge Christopher S. Sontchi, Ordinary Course of Business, United States Bankruptcy Court - District of Delaware
On December 18, 2014, Bankruptcy Judge Christopher Sontchi issued an opinion (a copy of which is found here)  granting summary judgment in favor of defendant and against trustee who sought to avoid and recover $1,181,583.84 as preferential transfers pursuant to 11 U.S.C. sections 547 and 550.  The Court granted the defendant’s motion seeking summary judgment that… Continue Reading

URGENT: Delaware U.S. District Court Sets 6:00 p.m. Filing Deadline

Posted in Rules
Effective tomorrow, October 16, 2014, the filing deadline for pleadings filed with the United States District Court for the District of Delaware will be 6:00 p.m. prevailing Eastern Time. Per the letter from Chief Judge Leonard Stark, “the 6:00 p.m. Eastern Time deadline applies to every filing and service deadline in every case in the… Continue Reading

Associated Wholesalers, Inc. Lands in Bankruptcy Court

Posted in Delaware Chapter 11 Filings, Judge Kevin J. Carey
Robesonia, Pennsylvania-based Associated Wholesalers, Inc. (“AWI”) and ten associated debtors (collectively, the “Debtors”) filed Chapter 11 petition in the Bankruptcy Court for the District of Delaware.  AWI provides distribution and retail services to its member retailers, who in turn operate supermarkets. The Debtors offer the declaration of Douglas A. Booth in support of their first… Continue Reading

Trump Entertainment Resorts, Inc. Is Back In Bankruptcy

Posted in Delaware Chapter 11 Filings, Judge Kevin Gross
On Tuesday, September 9, 2014, Trump Entertainment Resorts, Inc. (“TER”) and seven affiliated debtors (collectively, the “Debtors”)  filed for chapter 11 protection in Delaware.  A copy of TER’s petition is found here:  Voluntary Petition.  A list of the top 30 creditors was filed with this petition.  According to the petition, TER has between 1 and 49… Continue Reading

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… Continue Reading

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).… Continue Reading

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… Continue Reading