Bankruptcy & Restructuring Law

Welded Construction, L.P., along with its affiliate, Welded Construction Michigan, LLC, has filed a petition for relief under chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 18-12378).  The Petition estimates Welded’s assets and liabilities to both be between $100 – $500 million.  Kurtzman Carson Consultants is the proposed claims and noticing agent.  The cases have not yet been assigned to a judge. Contact Norman L. Pernick, G. David
ONE Aviation Corporation, along with eleven subsidiaries and affiliates, has filed a petition for relief under chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Lead Case No. 18-12309).  ONE Aviation, based in Albuquerque, New Mexico, is an aircraft manufacturer that was formed by the 2015 merger between Eclipse Aerospace and Kestrel Aircraft.  ONE Aviation has filed with a prepackaged plan of reorganization, which is supported by…
Upcoming Committee Formation Meeting: Thursday, October 18, 2018 10:00 AM Case Name: 18-12221 (KJC) Location: Office of the US Trustee 844 King Street, Room 3209, Wilmington, DE 19801 Notice of Formation Meeting for Official Committee of Unsecured Creditors can be found here. See the petition for relief. Contact Norman L. Pernick, G. David Dean or Myles R. MacDonald for more information regarding this matter.…
Mattress Firm, Inc., along with forty (40) affiliates and subsidiaries, has filed a petition for relief under chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Lead Case No. 18-12241).  Mattress Firm’s petition estimates its assets and liabilities to both be between $1–$10 billion.  First Day Pleadings are still being filed.  According to a press release, the Debtors enter chapter 11 having negotiated a prepackaged plan of…
In a recent decision, Heritage Home Group LLC, et al., Case No. 18-11736-KG, 2018 WL 4684802 (Bankr. D. Del. Sept. 27, 2018), Judge Kevin Gross, U.S. Bankruptcy Judge for the District of Delaware, held that a consultant tasked with liquidating the debtors’ assets under a store closing and asset disposition agreement (“Disposition Agreement”) is not a professional, and consequently, not required to be retained under Section 327(a) of the Bankruptcy Code. The Debtors, Heritage Home…
ATD Corporation, along with nine affiliates and subsidiaries, has filed a petition for relief under chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Lead Case No. 18-12221).  ATD, headquartered in Huntersville, North Carolina, is the largest replacement tire distributor in North America, with 122 distribution centers across the United States and another 24 in Canada.  According to the First Day Declaration, ATD’s filing was precipitated by…
Kraus Carpet Inc., along with five subsidiaries and affiliates, has filed a petition for recognition of a foreign proceeding under chapter 15 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Lead Case No. 18-12057).  According to the accompanying Declaration, Kraus, based in Waterloo, Ontario, Canada, operates a carpet and flooring distribution network throughout the United States and Canada.  Kraus is seeking recognition of its foreign proceeding under the Companies’…
Bankruptcy remote structures have become common in recent years to attempt to prevent a borrower from filing for Chapter 11.  One such structure is commonly referred to as a “golden share.”  The “golden share” typically refers to a noneconomic membership interest provided to a lender whose vote would be necessary for the borrower to file Chapter 11. The Fifth Circuit in In re FranchiseServs. of N. Am., Inc., 891 F.3d 198, 209 (5th Cir. 2018), as revised (June 14, 2018), recently considered the enforceability of blocking “golden share” provisions…
Upcoming Committee Formation Meeting: Friday, September 14, 2018 10:00 AM Case Name: 18-12012 (KJC) Location: The Doubletree Hotel, 700 King Street, Wilmington, DE 19801 Notice of Formation Meeting for Official Committee of Unsecured Creditors can be found here. See the petition for relief. Contact Norman L. Pernick, G. David Dean or Myles R. MacDonald for more information regarding this matter.…
Open Roads Films, LLC, along with five of its subsidiaries and affiliates, has filed a petition for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 18-12012).  The Debtors, based in Los Angeles, California, collectively comprise an independent distributor and licensor of motion pictures.  According to the First Day Declaration, while Open Roads was launched in 2011 as a strategic partnership between Regal Entertainment Group and AMC…