Delaware Bankruptcy Blog

Review of Bankruptcy Proceedings and Legal Developments in Delaware and Throughout the Country

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In October 2019, Bayou Steel BD Holdings, LLC, and its affiliated debtors (“Bayou Steel” or “Debtors”) filed for bankruptcy before the District of Delaware.  By way of background, the company sought protection from creditors after a “severe lack in liquidity” led to a default on its senior secured debt.  Bayou, which produces steel products like reinforcing bars and beams, has offloaded much of its remaining inventory and sell its assets during bankruptcy. Since the bankruptcy…
Tonopah Solar Energy LLC, the owner of a Nevada solar energy power plant, filed for bankruptcy on on July 30th before the United States Bankruptcy Court for the District of Delaware.  According to its petition, the debtor has between $100 million and $500 million in liabilities. Tonopah Solar Energy LLC still owes $425 million on a loan from the U.S. Department of Energy, but reached a settlement under which the department will recover at least…
IMH Financial Corporation (“IMH” or the “Company”) has recently filed for chapter 11 bankruptcy protection before the United States Bankruptcy Court for the District of Delaware. IMH is a real estate investment holding company with assets consisting of: (i) the MacArthur Place Hotel & Spa in Sonoma California, (ii) thousands of undeveloped acreage and related water rights outside of Albuquerque New Mexico, (iii) other real estate assets, and (iv) significant tax attributes. According to the…
On July 28, 2020, an involuntary bankruptcy petition was filed against SonoCiné, Inc., an imaging ultrasound company.  A copy of the involuntary petition can be found here.  According to the petition, Global Link Medical Group, Inc. possesses a claim against the debtor for over $1.5 million. Under Section 303 of the Bankruptcy Code, a debtor can potentially be “forced” into an involuntary bankruptcy.  11 U.S.C.§ 303(b)(1).  If a company has 12 or more creditors,…
Bruin E&P Partners LLC and its affiliates (“Bruin”), a Houston oil and gas company backed by private equity firm ArcLight, filed for Chapter 11 bankruptcy  protection on July 16, 2020 in the Southern District of Texas. Like other companies in the oil & gas industry, the coronavirus pandemic has reduced global need for fuel and has affected the profitability of energy companies, causing a major disruption to the business. Through the bankruptcy, Bruin seeks to…
Global Eagle Entertainment Inc. filed for bankruptcy in Delaware on Wednesday, July 22, 2020, becoming the latest travel-related bankruptcy during the pandemic.  Global Eagle provides Wi-Fi services to airlines and ships, and plans to turn ownership over to Apollo Global Management Inc. and other lenders. The debtors receive approximately a fifth of their revenue from Southwest Airlines Co. Global Eagle said it will continue serving customers throughout the bankruptcy proceeding, and plans to emerge from…
The United States District Court for the District of Delaware recently issued a Revised Standing Order Concerning the Use of Face Mask and Coverings in Public Areas of the District and Bankruptcy Court.  Per the Revised Standing Order, court staff are required to wear a face mask when interacting with the public.  Likewise, visitors of the courthouse, including attorneys, litigants, vendors, etc. must wear a mask when interacting with court staff and in common…
Muji USA Ltd., the U.S. division of the iconic Japanese home and goods fashion retailer, filed for Chapter 11 bankruptcy on July 10, 2020 in the United States Bankruptcy Court for the District of Delaware, with plans to reposition the brand’s e-commerce division. Chapter 11 bankruptcy filings permit a struggling businesses to continue its operations and improve their financial health through reorganization. Various first day motions were filed by the debtors, including a motion authorizing…
When a defendant in a personal injury lawsuit files for bankruptcy, the “drill” is familiar: a suggestion of bankruptcy is filed, the case is stayed, and no further action can be taken to liquidate the personal injury plaintiff’s claims until the automatic stay is lifted. So how does a personal injury claimant go about lifting the automatic stay in order to liquidate his or her claim against the debtor?  Answer: the claimant will need to…
Background on the Debtors The iconic retail brand, Brooks Brothers, filed for Chapter 11 bankruptcy protection on Wednesday, July 8, 2020 in the Delaware Bankruptcy Court. Founded in 1818, Brooks Brothers is one of the country’s oldest retailers.  In light of the coronavirus, rent had become a significant burden for the retailer.  To date, Brooks Brothers has closed or is in the process of closing 51 of its retail locations.  More store closures could be…