Delaware Bankruptcy Court Off to Busy Start in 2008
Lending credence to speculation that 2008 will be a busy year for the United States Bankruptcy Court for the District of Delaware, several large cases have filed in Delaware in the opening weeks of the year.
On January 18, 2008, Domain Home Furnishings filed a petition for relief under Chapter 11 of the Bankruptcy Code. This case is being jointly administered under case number 08-10132. Judge Walsh is presiding over this case. Domain is a furniture retailer with twenty-seven locations throughout the Northeast and Mid-Atlantic. According to papers that the debtor filed in the case, Domain hopes to reorganize its business.
On January 22, 2008, Buffets Holdings, Inc. and its related debtors commenced Chapter 11 cases. These cases are being presided over by Chief Judge Mary F. Walrath, and are being jointly administered under case number 08-10141. The debtors operate 626 restaurants in thirty-nine states under the Tahoe Joe’s Famous Steakhouse, Old Country Buffet, HomeTown Buffet, Ryan’s and Fire Mountain brands. The debtors, who employ 37,000 people, have obtained debtor-in-possession financing of $385 million. Indications are that the debtors intend to reorganize their businesses, and continue to operate.
Also on January 22, 2008, Answer Financial, Inc. filed a Chapter 11 petition. This case is being presided over by Chief Judge Mary F. Walrath, under case number 08-10140. Answer Financial is an insurance agency that operates over the Internet and phone. According to its petition, the debtor has between $1,000,001 and $10 million in assets, and between $50,000,001 and $100 million in liabilities.
