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Delaware Bankruptcy Litigation Information on Corporate Bankruptcy Proceedings in Delaware and Throughout the United States

Category Archives: Bankruptcy Case Update

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Tuscany Bankruptcy: No Unsecured Creditors’ Committee Formed

Posted in Bankruptcy Case Update

In the Tuscany International Drilling bankruptcy action, filed in the United States Bankruptcy Court for the District of Delaware, the United States Trustee recently filed a Statement that the Unsecured Creditors’ Committee Has Not Been Formed.  The Statement indicates that there was “insufficient response to the United States Trustee’s communications/contact for service on the committee.”… Continue Reading

Tuscany International Drilling’s “First Day” Motions Granted; Section 341 Meeting of Creditors Scheduled

Posted in Bankruptcy Case Update

As discussed in the prior post, Tuscany International Drilling Inc., and its subsidiary, Tuscany International Holdings (U.S.A.) Ltd. (“Tuscany” or the “Debtors”) filed for bankruptcy on February 2, 2014 with the United States District Court for the District of Delaware.  On February 4, 2014, the Court held a “First Day” hearing to hear a number… Continue Reading

Notice: Order in AFA Investment, Inc. Has Substantial Effect on Creditors — Guest Post Written by Jay Strock

Posted in Bankruptcy Case Update

On May 8, 2012, the U.S. Bankruptcy Court for the District of Delaware (the “Court”) entered its Order (the “Order”) Establishing Procedures to Assert Claims Arising under Section 503(b)(9) of the Bankruptcy Code (“503(b)(9) Claims”) in the chapter 11 cases of AFA Investment, Inc. and its affiliated debtors (collectively, the “Debtors”) (Bankr. D. Del. 12-11127… Continue Reading

Washington Mutual’s Plan of Reorganization has been Confirmed

Posted in Bankruptcy Case Update

At approximately 10:15 this morning, Judge Walrath of the Delaware Bankruptcy Court made an oral ruling confirming Washington Mutual’s chapter 11 plan of reorganization. Over the last three and one-half years, hundreds of attorneys and other professionals have worked thousands of hours in an effort to help WAMU obtain a measure of relief from its debts so… Continue Reading

Apparel Retailer, Orchard Brands, Files for Bankruptcy in Delaware

Posted in Bankruptcy Case Update

Introduction On January 19, 2011, Orchard Brands, also known as "Appleseed’s Intermediate Holdings," filed petitions for bankruptcy in the United States Bankruptcy Court for the District Delaware.  According to the Declaration of T. Neale Attenborough, Orchard Brands’ CEO, the company sells clothing and home goods under 17 different brands including Monterey Bay, Norm Thompson, Draper’s… Continue Reading

Trustee In DBSI Bankruptcy Files Adversary Actions

Posted in Bankruptcy Case Update

Introduction Earlier this month, the chapter 11 trustee (the "Trustee") in the DBSI bankruptcy began filing adversary actions seeking the avoidance and recovery of alleged fraudulent transfers.  The Trustee filed the adversary actions against various defendants, some of whom the Trustee identifies as "John Doe 1 -10."  This post will look briefly at the DBSI bankruptcy proceeding, why… Continue Reading

Third Circuit Affirms Delaware Bankruptcy Court Stub Rent Decision

Posted in Bankruptcy Case Update

Below is a post from Michael Temin, senior counsel with Fox Rothschild.  —————————————————————————– Bankruptcy Code § 365(d)(3) requires the trustee or the debtor in possession to "timely perform all the obligations of the debtor . . .arising from and after the order for relief under any unexpired lease of nonresidential real property, until such lease is… Continue Reading

Frenville Overruled

Posted in Bankruptcy Case Update

I am proud to introduce a contributing "blogger" to the Delaware Bankruptcy Litigation Blog.  As a frequent author and speaker on corporate bankruptcy, Michael Temin needs no introduction.  Michael is senior counsel with Fox Rothschild, a contributing author to Collier on Bankruptcy, Collier Bankruptcy Practice Guide and co-editor of the Pennsylvania Ethics Handbook (2008).  The following… Continue Reading

American Safety Razor Files for Bankruptcy, Citing Slow Growth and Increased Competition

Posted in Bankruptcy Case Update

Introduction American Safety Razor Company (“ASR”),  one of the largest manufacturers of shaving razors and blades, filed for bankruptcy protection in Delaware on July 28, 2010.  According to the  Declaration of ASR’s Chief Financial Officer, Andrew Bolt (the “Bolt Declaration“), the company’s net sales for 2009 totaled $330 million, down from the $351 million in sales achieved in 2008. … Continue Reading

Specialty Products Holding Corp Plans to Implement “Shaping Litigation” to Manage Asbestos Exposure

Posted in Bankruptcy Case Update

Introduction Earlier this week I wrote about the Specialty Products Holding Corp. ("SPHC" or the "Debtor") bankruptcy.  My prior post looked at the SPHC’s business, the events leading to company’s bankruptcy and what SPHC sought to achieve by filing for bankruptcy.  Simply stated, SPHC filed for bankruptcy in order control its costs arising from asbestos litigation.  Whereas my first post relied upon… Continue Reading

Xerium Technologies Files Bankruptcy, Hoping to Cut Its Debt by $160 Million

Posted in Bankruptcy Case Update

Equipment maker, Xerium Technologies, filed chapter 11 petitions for bankruptcy on March 30th in the United States Bankruptcy Court for the District of Delaware.  According to the Declaration filed by Xerium’s CEO (the "Declaration"),  the company filed for bankruptcy in order to trim its debt down from $640 million to $480 million.  To achieve this, Xerium… Continue Reading

Decision in Fedders Bankruptcy Looks at Whether Lenders Aided and Abetted Debtor in Breach of Duty of Care

Posted in Bankruptcy Case Update

Introduction In January of this year, Judge Brendan L. Shannon of the United States Bankruptcy Court for the District of Delaware issued a decision addressing whether a debtor’s lenders had aided and abetted the directors of debtor, Fedders North America, Inc. ("Fedders"), in breaching their duty of care (read the Fedders’ Decision here).  The aiding and… Continue Reading

JL French Automotive Castings Files for Bankruptcy Three Months After the Close of its 2006 Bankruptcy

Posted in Bankruptcy Case Update

Introduction JL French Automotive ("JLF"), the Wisconsin-based automotive supplier, filed for bankruptcy on July 13, 2009.  JLF filed for bankruptcy in the United States Bankruptcy Court for the District of Delaware.  According to the Declaration in Support of First Day Motions (the "Declaration"), JLF previously filed for bankruptcy in Delaware in February of 2006. On April 17,… Continue Reading

A Closer Look at the Dayton Superior Bankruptcy

Posted in Bankruptcy Case Update

 Introduction On April 19, 2009, Dayton Superior Corporation filed for bankruptcy in the United States Bankruptcy Court for the District of Delaware.  According to Dayton’s bankruptcy petition,  the Debtor has assets totaling $288 million and liabilities of $406 million.  As stated in Dayton’s Declaration in Support of First Day Motions,  Dayton "manufactures, markets and distributes specialized… Continue Reading

Trustee Commences Preference Actions in Adva-Lite Bankruptcy

Posted in Bankruptcy Case Update, Preference Litigation

The chapter 7 trustee for the Adva-Lite bankruptcy recently filed over 70 adversary complaints seeking to recover what the trustee considers avoidable transfers under sections 547, 548, 549 and 550 of the Bankruptcy Code.  The preference actions are before the Honorable Kevin J. Carey, Chief Judge of the Delaware Bankruptcy Court.  As reflected in the Adva-Lite complaints,… Continue Reading

Decision in Goody’s Holds That Administrative Claims Under 503(b)(9) Apply to Goods, Not Services

Posted in Bankruptcy Case Update, Recent Developments in Bankruptcy Law

Introduction The Honorable Christopher S. Sontchi, presiding over the Goody’s bankruptcy in the United States Bankruptcy Court for the District of Delaware, issued a decision recently regarding the scope of administrative claims under 11 U.S.C. 503(b)(9).  Section 503(b)(9) provides that after notice and a hearing, there shall be an allowed administrative expense claim for "the… Continue Reading

Decision in SemCrude Interprets “Mutuality” Requirement for Setoffs Under Section 553 of the Bankruptcy Code

Posted in Bankruptcy Case Update, Recent Developments in Bankruptcy Law

Introduction The Bankruptcy Code allows for the setoff of "mutual debts" in a bankruptcy proceeding under 11 U.S.C. 553(a).  Section 553 makes no reference to non-mutual debts, which courts interpret to mean that non-mutual debts are not subject to setoff under the Bankruptcy Code.  Recently, in the SemCrude bankruptcy, the Honorable Brendan L. Shannon issued a… Continue Reading

NetVersant Solutions Seeks Injunction Against its Suppliers and Subcontractors in Anticipation of the Sale of Its Assets

Posted in Bankruptcy Case Update

As many are aware, NetVersant Solutions, Inc. ("NetVersant" or "Debtors"),  a provider of voice, video and data communication services, filed for bankruptcy in the United States Bankruptcy Court, District of Delaware, on November 19, 2008.  Contemporaneous with its bankruptcy,  NetVersant filed an adversary action with the Bankruptcy Court seeking injunctive relief against against a long list… Continue Reading

Court Appointed Examiner in SemCrude Bankruptcy Files Preliminary Work Plan

Posted in Bankruptcy Case Update

On October 14, 2008,  the United States Bankruptcy Court for the District of Delaware appointed Louis Freeh, the former Director of the FBI, as examiner in the SemCrude bankruptcy.  Five weeks after his appointment,  Freeh submitted the Examiner’s Preliminary Work Plan as required under the order granting his appointment (the "Examiner Order").  Pursuant to the… Continue Reading