All items from Delaware Business Bankruptcy Report

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.  A copy of the AWI petition is linked here: Voluntary Petition (Associated Wholesalers, Inc.).    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 day motions.  A copy of the Booth Declaration is found here:  Declaration of Douglas A. Booth.  Mr. Booth is the Chief Restructuring Officer of the Debtors.  According to the Booth Declaration, AWI acquired Di Giorgio Corporation (later renamed White Rose, Inc.) in June 2006 and have since faced significant economic changes.   Since approximately June 2014, Debtors have attempted to sell substantially all of their assets. As a result of this process, Debtors entered into an Asset Purchase Agreement with C&S Wholesale Grocers, Inc. (“C&S”) on September 9, 2014, who will serve as the stalking horse bidder through the Bankruptcy Court’s sale process.
The cases have been assigned to Bankruptcy Judge Kevin J. Carey for administration.  The lead case has been docketed as case no. 14-12093 (KJC).



Posted 6 days 15 hours ago

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 creditors and it estimated assets between $100 and $500 million with liabilities estimated between $100 million and $500 million. As of the petition date, Debtors’ books and records reflected an account payable due and owning relating to trade debt of $13.5 million.
Debtors offered the declaration of Robert Griffin in support of the petitions and related first-day motions and applications.  A copy is found here:  Declaration of R. Griffin in Support of First Day Motion.  Mr. Griffin is TER’s Chief Executive Officer. Debtors own two casino hotels in Atlantic City, New Jersey:  the Trump Taj Mahal Casino Resort and the Trump Plaza Hotel and Casino. Debtors emerged from bankruptcy in 2010, but according to the Griffin Declaration they continued to face significant challenges due to the prolonged economic downturn and increased competition from with the Atlantic City market, and the lingering effects of Superstorm Sandy.



Posted 6 days 15 hours ago

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 with liabilities estimated between $1 million and $10 million.
The debtor offered the Declaration of J. Joyce in Support of its First Day Motions and provided an organizational chart in the Exhibit A attached to the declaration. As set forth in the Joyce Declaration, Ambient has entered into a stalking horse purchase agreement with a potential purchaser, Ericsson, Inc. and intends to seek approval of bid protections and bidding procedures to complete the marketing process of the sale of its assets.
The case has been assigned to The Honorable Kevin Gross for administration (lead case no. 14-11791-KG).



Posted 7 weeks 13 hours ago

Eric Monzo will be a panel member at the July 24th American Bankruptcy Institute’s 19th Annual Southeast Bankruptcy Workshop in Amelia Island, Florida.
More states are adopting asset-protection trust statutes and as a result, there is an increasing trend of cases discussing the validity of these trusts in the bankruptcy context. Mr. Monzo will be discussing these decisions and will provide practical tips on how to avoid common pitfalls relating to the creation and litigation involving such trusts, specifically Delaware domestic asset protection trusts.



Posted 8 weeks 3 days ago

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). A list of the top 35 creditors was filed with the petition.
Debtors offer the Declaration of Stephen Dube, Source Home Entertainment, LLC’s Chief Restructuring Officer and Senior Manager of FTI Consulting, Inc.,  in support of their first day motions.  Attached here is the Declaration of Stephen Dube.  According to the Dube Declaration, the Debtors are comprised of two primary units:  (a) the distribution business, primarily operated by Source Interlink Distribution, LLC (“Source Distribution”) and (b) the retail checkout display manufacturing business (the “Retail Display Business”), which is primarily operated by Source Interlink Manufacturing LLC (“Source Manufacturing”).



Posted 12 weeks 18 hours ago

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 estimated assets are listed between $50 million and $100 million with liabilities estimated between $100 million and $500 million.
The case has been assigned to Bankruptcy Judge Christopher S. Sontchi (lead case no. 14-11528-CSS).



Posted 12 weeks 19 hours ago

On Monday June 16, 2014, Bay St. Louis, Mississippi based, large diameter high pressure steel pipe manufacturer PSL - North America LLC and affiliated debtor PSL USA INC. filed chapter 11 petitions in Delaware.  A copy of PSL - North America LLC's bankruptcy petition containing a consolidated list of the largest unsecured creditors is here.   According to the petition, PSL - North America LLC estimates that it has between 100 and 199 creditors.  Its assets are estimated between $50M to $100M with liabilities estimated between $100M to $500M.
A motion to jointly administer the cases has been filed.  The cases have been assigned to Bankruptcy Judge Peter J. Walsh.  The proposed lead case number is no. 14-11477-PJW.



Posted 13 weeks 18 hours ago

On Monday June 16, 2014, Bay St. Louis, Mississippi based, large diameter high pressure steel pipe manufacturer PSL – North America LLC and affiliated debtor PSL USA INC. (collectively, the "Debtors") filed chapter 11 petitions in Delaware.  A copy of PSL – North America LLC’s bankruptcy petition containing a consolidated list of the largest unsecured creditors is here.   According to the petition, PSL – North America LLC estimates that it has between 100 and 199 creditors.  Its assets are estimated between $50M to $100M with liabilities estimated between $100M to $500M.
In support of their chapter 11 petitions and first day motions, Debtors offered the Declaration of Brian J. Vaill (the "Vaill Declaration").   As set forth in the Vaill Declaration (found here), Debtors’  cash and liquidity position has continued to deteriorate and Debtors’ sought to restructure their debt obligations.  Debtors have identified Jindal Tubular USA LLC as a potential "stalking horse" purchaser of substantially all of their assets in exchange for aggregate consideration of cash and certain assumed liabilities totaling approximately $100M.  



Posted 13 weeks 19 hours ago

On June 11, 2014, California based Natrol Inc. and seven affiliated debtors filed petitions for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware.  
A copy of Natrol's petition and the list of the creditors holding the 30 largest unsecured claims on a consolidated basis is attached here.  According to the petition, Natrol estimates that it has between 1,000 and 5,000 creditors.  Natrol estimates its assets between $100M and $500M, with liabilities between $50M to $100M.
The cases have been assigned to Bankruptcy Judge Brendan Linehan Shannon for administration and Natrol's petition was docketed as Case 14-11446.
 



Posted 13 weeks 5 days ago

On June 11, 2014, California based Natrol Inc. and seven affiliated debtors filed petitions for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware.  
A copy of Natrol’s petition and the list of the creditors holding the 30 largest unsecured claims on a consolidated basis is attached here.  According to the petition, Natrol estimates that it has between 1,000 and 5,000 creditors.  Natrol estimates its assets between $100M and $500M, with liabilities between $50M to $100M.
The cases have been assigned to Bankruptcy Judge Brendan Linehan Shannon for administration and Natrol’s petition was docketed as Case 14-11446.
 



Posted 13 weeks 5 days ago