Delaware Chapter 11 Filings - 2008
Commercial Chapter 11 case filings in the United States Bankruptcy Court for the District of Delaware in 2008:
Continue Reading...Court Holds That Funds Collected From Amp'd Mobile Customers for Insurance on Cellphones Are Property of the Estate, and Not Held in Trust for Insurer
Asurion Ins. Servs., Inc. v. Amp’d Mobile, Inc. (In re Amp’d Mobile, Inc.), 377 B.R. 478 (Bankr. D. Del. 2007) (Judge Brendan Linehan Shannon)
The United States Bankruptcy Court for the District of Delaware denied a vendor’s request for a determination that funds that the debtor received in connection with a contract between the parties were not property of the estate, and that such funds were held in a constructive trust. The vendor, Asurion Insurance Services, Inc., was party to an agreement with the debtor to offer insurance to the debtor’s customers against loss or damage to the participating customers’ cellular phones. The Court found that there was no fiduciary relationship between Asurion and the debtor so as to warrant a finding that the premium payments the debtor received from its customers were anything other then property of the debtor’s estate.
Continue Reading...Delaware Chapter 11 Filings - 2007
Commercial Chapter 11 case filings in the United States Bankruptcy Court for the District of Delaware in 2007:
Continue Reading...When Is Failure to Disclose Ownership of a License Plate Indicative of Bad Faith Chapter 7 Filing?
In re Murray, 377 B.R. 464 (Bankr. D. Del. 2007) (Judge Brendan L. Shannon)
Although our purpose here at the Delaware Business Bankruptcy Report is to provide news and commentary on commercial bankruptcy cases here in Delaware, the Court published an opinion this week in a consumer case that we want to share with our readers. First, a little background information is helpful. In Delaware, license plates are freely transferable. There is a vigorous trade in low-digit license plates. The most coveted plates of all are those with a single digit. Similarly, two-digit and three-digit plates are hot commodities that can sell for eye popping prices.
Continue Reading...Court Denies Landlord's Request for Section 365(d)(3) Treatment for Obligations Incurred Pre-Petition But Invoiced Post-Petition
In re Pac-West Telecomm, Case No. 07-10562 (BLS), -- B.R. --, 2007 WL 2910093 (Bankr. D. Del. Oct. 5, 2007) (Judge Brendan L. Shannon) Debtor Pac-West Telecomm, Inc. commenced its bankruptcy case on April 30, 2007. Carlyle One Wilshire II, L.P., a landlord of the debtor, filed a motion under 11 U.S.C. § 365(d)(3) to compel the debtor to pay amounts allegedly coming due post-petition under the leases between the parties. The motion related to two sets of charges. The first was to recapture amounts undercharged for electricity usage prior to the commencement of the case. The second was for late charges and attorneys’ fees allegedly owing under the leases. The United States Bankruptcy Court for the District of Delaware denied the request for payment under section 365(d)(3), finding that the amounts invoiced were pre-petition obligations of the debtor.
Fedders Bankruptcy Case Files in Delaware
Fedders North America, Inc. and sixteen affiliated debtors, including its parent company, the Fedders Corporation filed petitions under Chapter 11 of the Bankruptcy Code in Delaware earlier today. Judge Brendan Linehan Shannon will preside over these cases.
Continue Reading...Amp'd Mobile, Inc. Files Chapter 11 Petition
On June 1, 2007, Amp’d Mobile, Inc. filed a voluntary petition for relief under Chapter 11 in the United States Bankruptcy Court for the District of Delaware. Judge Brendan Linehan Shannon has been assigned to the case.
Amp’d, a provider of mobile phone and entertainment services, proposes to continue to operate out of cash collateral while continuing to seek debtor-in-possession financing. On June 5, 2007, Judge Shannon approved the debtor’s cash collateral motion on an interim basis, pending a final hearing on June 20, 2007.
InSight Health Services files Chapter 11 Petition; Proposes Prepackaged Plan of Reorganization
On May 29, 2007, InSight Health Services Holdings Corp. (Case No. 07-10700) and InSight Health Services Corp. (Case No. 07-10701) filed voluntary petitions in the United States Bankruptcy Code for the District of Delaware for relief under Chapter 11 of the Bankruptcy Code. The debtors are proposing a prepackaged plan that effects a debt to equity swap to alleviate the burdens upon the debtors from extensive senior subordinated note debts.
Equity Committee Appointed in Hancock Fabrics Case
On May 22, 2007, United States Trustee Kelly Beudin Stapleton appointed an Official Committee of Equity Security Holders in the Hancock Fabrics, Inc. case (07-10353 (BLS)). The members of the committee are Berg & Berg Enterprises LLC of Cupertino, California, Trellus Management of New York and Warren B. Kanders of Stamford, Connecticut. Sonnenschein Nath & Rosenthal of New York and Morris Nichols Arsht & Tunnell LLP of Wilmington, Delaware will serve as counsel to the equity committee.
Continue Reading...Pac-West Telecomm, Inc. and Various Affiliates File Chapter 11 Petitions
Yesterday, April 30, 2007, Pac-West Telecomm, Inc. and certain related entities filed chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware. The case has been assigned case number 07-10562. The petition lists assets of approximately $54 million and liabilities of approximately $66 million.
Other filing entities are PWT of New York, Inc., PWT Services, Inc., Pac-West Telecomm of Virginia, Inc., Installnet, Inc., and U.S. Net Solutions, Inc.
Court Denies Motion To Reject Settlement Agreement
In re LG Philips Displays USA, Inc., Case No 06-10245 (BLS), 2006 WL 1748671 (Bankr. D. Del. June 21, 2006) (Judge Brendan L. Shannon)
Debtor moved to reject a settlement agreement under which debtor conveyed option to purchase real estate, as the Debtor wished to purchase the property itself. The party holding the purchase option objected to the motion. The Court denied the motion, holding that the settlement agreement was not an executory contract that could be rejected under the Bankruptcy Code.
Continue Reading...