Xerium Technologies, Inc. and 15 Affiliates File Chapter 11 to Consummate Pre-packaged Financial Restructuring

Posted on March 30, 2010 by Morris James Delaware

Early this morning, March 30, 2010, Xerium Technologies, Inc. and 15 affiliated debtors filed Chapter 11 in Delaware. The petition lists total assets exceeding $1 billion, and liabilities between $500 million and $1 billion. The main case number is 10-11031 and Judge Kevin J. Carey has been assigned to the case.

According to the declaration in support of the filing made by Stephen Light, CEO and Chairman of the Board of Xerium Technologies, the debtors are “a leading global manufacturer and supplier of two categories of consumable products used in the production of paper products and roll technology products installed in paper-making machines.”  Mr. Light’s declaration points to “decreased demand for [paper producers’] products . . . due to the increasing prevalence of electronic media” as part of the reason for the filing. “The drop in global demand for paper products has resulted in a surplus of paper inventory at paper-making companies and corresponding curtailments and idling of paper-making machines. In addition, as Xerium’s customers have experienced difficulty raising funds in the capital markets, customers’ demands for Xerium’s products and services has [sic] necessarily contracted.”

 

On March 2, 2010, the debtors commenced a pre-petition solicitation of votes in favor of a pre-packaged plan and disclosure statement. Mr. Light’s declaration indicates that the plan has been overwhelmingly supported by the two classes entitled to vote. Accordingly, the debtors will be seeking to exit bankruptcy in mid-May, 2010.

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Greatwide Logistics Worldwide Files Bankruptcy Cases in Delaware

Posted on October 21, 2008 by Morris James LLP

Yesterday, GWLS Holdings, Inc. and its related debtors filed petitions under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The debtors have requested that these cases be jointly administered under case number 08-12430. The Honorable Peter J. Walsh is presiding over these cases.

The debtors’ principal business is Greatwide Logistics Worldwide. According to its website, Greatwide was founded in Dallas, Texas in 2000, and “is a third-party logistics services company with annual revenues of approximately $1.2 billion. Greatwide is ranked No. 11 on the Transport Topics Top 50 and is one of the fastest growing companies in the Dallas/Fort Worth area. The company has four primary lines of business: dedicated transport, truckload management, truckload brokerage and distribution logistics.”

According to the affidavit of Chief Financial Officer Stephen Bishop in support of the debtors’ first day pleadings, among the most significant challenges faced by the debtors in the run-up to the filing of these cases were the recent significant increases in fuel costs, industry-wide freight declines, and unexpected demands from their insurers for additional collateral. The debtors have commenced these cases to accomplish a sale of their assets to certain of their prepetition lenders under section 363 of the Bankruptcy Code, subject to a competitive bidding process. The debtors contemplate closing such a sale by January 31, 2009.
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HRP Myrtle Beach Holdings, LLC and affiliates, Operators of Theme Park, Seek Chapter 11 Protection

Posted on September 25, 2008 by Morris James LLP

On September 24, 2008, HRP Myrtle Beach Holdings, LLC, HRP Myrtle Beach Operations, LLC, HRP Myrtle Beach Holdings Capital Corp., HRP Myrtle Beach Capital Corp. and We Got Your Back Security Co., LLC, HRP Myrtle Beach Management, LLC, and HRP Global Management, LLC filed for Chapter 11 protection in the United States Bankruptcy Court for the District of Delaware.  Chief Judge Kevin J. Carey has been assigned to these cases.  A copy of the petition filed by HRP Myrtle Beach Holdings, LLC is here.

Reasons cited by Mr. Goodwin for the filing include the collapse of the housing market, skyrocketing energy and gasoline prices and steadily increasing food costs which have resulted in a decline in discretionary spending by consumers.  These factors resulted in lower-than-expected attendance levels at the Park in 2008 and left the debtors facing a liquidity crisis.

The Debtors’ expressed goal of the bankruptcy filings is the development of a business plan that will recast and streamline the Debtors’ capital and expense structures to position the Debtors to attract consumers’ discretionary funds. The Debtors hope to restructure their operations and emerge from chapter 11 prior to the start of the next tourist season in April 2009.
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