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

Tag Archives: Delaware Bankruptcy Court

Karmaloop, Inc. Formation Meeting and Section 341 Meeting Scheduled

Posted in Bankruptcy Case Update

In the Karmaloop, Inc. bankruptcy proceeding, a formation meeting has been scheduled for Wednesday, April 1, 2015 at 10:30 a.m. (ET) at the DoubleTree Hotel, 700 King St., Salon C, Wilmington, DE 19801.  Click Here for a copy of the Notice of Formation Meeting for Official Committee of Unsecured Creditors issued by the Office of the United States Trustee.  If… Continue Reading

Trump Decision – Administrative Claims of Employees

Posted in Opinions

In an 11 page opinion (the “Opinion”) released March 9, 2015, in the Trump Entertainment Resorts, Inc. bankruptcy (Case No. 14-12103), Judge Gross interpreted Bankruptcy Code 503(b)(1)(A) in approving the reclassification of a claim from a priority claim to a general unsecured claim.  The Opinion is available here.  Administrative claims are an integral part of… Continue Reading

Trump Wins Relief From Stay – No More Trump Casino in AC?

Posted in Opinions

In a 21 page opinion (the “Opinion”) released February 20, 2015, in the Trump Entertainment Resorts, Inc bankruptcy (Case No. 14-12103), Judge Gross, granted the motion of Trump AC Casino Marks, LLC (“Trump AC”) to modify the automatic stay to allow litigation to proceed, which could result in termination of their license with the Debtors. … Continue Reading

RadioShack Pulls the Plug

Posted in Bankruptcy Case Summaries

In an unsurprising move, RadioShack has become the latest retailer to file for relief under Chapter 11 of the Bankruptcy Code.  RadioShack filed on February 5, 2015 along with 17 of its affiliates.  The cases are jointly administered under Case Number 15-10197 and presided over by Judge Shannon.  The emergency first day motion was held… Continue Reading

Lessons from Chapter 13 – When is 8% Not Really 8%

Posted in Opinions

In ruling on a very unfortunate situation (more on that below), Judge Shannon issued an opinion on July 24, 2014 in the Aro bankruptcy, holding that a state court decision concerning the validity of a lien cannot be challenged in Bankruptcy Court.  In the opinion in this case issued on January 22, 2015 (the “Opinion”),… Continue Reading

Golden Guernsey Dairy – Preference Actions Filed

Posted in Preference Litigation

Introduction On January 6, 2015, Charles A. Stanziale, Jr., the Chapter 7 Trustee (the “Trustee”) for the bankruptcy estate of Golden Guernsey Dairy, LLC (the “Debtor”), began filing complaints to recover what he contends are avoidable preferences.  The Trustee filed the preference actions in the Delaware Bankruptcy Court and argued that the transfers, or payments,… Continue Reading

Liberty Brands Opinion – Preference Litigation and the Bankruptcy Court’s Constitutional Limits

Posted in Opinions

In 6 pages of Findings of Fact and Conclusions of Law released December 19, 2014 in the Liberty Brands bankruptcy (Bank. D. Del. 09-50965), Judge Walrath’s ruling referenced Stern v. Marshall, 131 S.Ct. 2594 (2011).  Judge Walrath’s Findings of Fact and Conclusions of Law are available here (the “Opinion”).  Because of the continuing discussions caused by the Stern opinion, we wanted to… Continue Reading

NOLs – A Recoverable Transfer?

Posted in Opinions

In a 27 page opinion released October 23, 2014 in the Conex Holdings case (Bank. D. Del. 11-10501), Judge Sontchi of the Delaware Bankruptcy Court provided his analysis of the ability of a debtor to recover the value of NOLs used by its parent within consolidated tax returns.  This ruling has implications for any debtor… Continue Reading

Quantum Foods: Committee Files Preference Actions

Posted in Preference Litigation

Introduction On October 28, 2014, The Official Committee of Unsecured Creditors of Q v. AB Foods LLC (the “Committee”), the committee in the Quantum Foods, LLC bankruptcy, began filing complaints to recover what it contends are avoidable preferences.  The Committee filed the preference actions in the Delaware Bankruptcy Court and argue that the transfers, or… Continue Reading

Green Field Energy Files for Bankruptcy Protection in Delaware

Posted in Bankruptcy Case Summaries

Green Field Energy Services, Inc. (“Green Field”), filed for bankruptcy protection yesterday in the United States Bankruptcy for the District of Delaware.  Green Field began in 1969 as Hub City Industries, LLC, a Louisiana limited liability company.  The company changed its name to Green Field Energy Services in 2011, at the same time converting to… Continue Reading

North Texas Bancshares, Inc., Files for Bankruptcy in Delaware

Posted in Bankruptcy Case Summaries

On October 16, 2013, North Texas Bancshares of Delaware, Inc. and North Texas Bancshares, Inc. (collectively, the “Debtors”) filed chapter 11 petitions for bankruptcy in the United States Bankruptcy Court for the District of Delaware.  Debtors are bank holding companies based in Dallas, Texas.  See Declaration in Support of Chapter 11 Petitions and First Day… Continue Reading

Graceway Pharmaceuticals Trustee Files Preference Complaints

Posted in Preference Litigation

On September 13th, the Liquidating Trustee (the “Trustee”) in the Graceway Pharmaceuticals (“Graceway”) bankruptcy filed preference complaints against approximately 25 different defendants. The Trustee is seeking to avoid and recover what he contends are avoidable preferences under section 547 of the United States Bankruptcy Code. Graceway filed chapter 11 petitions for bankruptcy on September 27,… Continue Reading

A Closer Look at the Longview Power Bankruptcy

Posted in Bankruptcy Case Summaries

Introduction On August 30, 2013, Longview Power, LLC, and various related entities (collectively, “Longview”), filed chapter 11 petitions for bankruptcy in the United States Bankruptcy Court for the District of Delaware.  According to the Declaration of Longview’s CEO (the “Declaration” or “Decl.”), Longview was formed in 2003 for the purpose of building and operating a 700… Continue Reading

A Closer Look at the Synagro Technologies Bankruptcy

Posted in Bankruptcy Case Summaries

Introduction On April 24, 2013, Synagro Technologies ("Synagro") and various affiliates filed chapter 11 petitions for bankruptcy in the United States Bankruptcy Court for the District of Delaware.  Synagro recycles biosolid and organic materials generated by municipal and industrial waste water treatment centers.  The company describes its services to include "drying and pelletization, composting, incineration,… Continue Reading

The Scooter Store Files for Bankruptcy in Delaware, Citing Government Regulations and Investigations

Posted in Bankruptcy Case Summaries

Introduction On Monday, April 15, 2013 (the "Petition Date"), The Scooter Store Holdings, Inc. (the "Scooter Store" or "Debtor"), and various related entities filed chapter 11 petitions for bankruptcy in the United States Bankruptcy Court for the District of Delaware.  Based in New Braunfels, Texas, Scooter Store is one of the nation’s largest providers of… Continue Reading

A Summary of the Rotech Healthcare Bankruptcy

Posted in Bankruptcy Case Summaries

Introduction Earlier today, Rotech Healthcare ("Rotech"), filed chapter 11 petitions for bankruptcy in the United States Bankruptcy Court for the District of Delaware.  According to a declaration filed by Rotech’s President and CEO (the "Declaration" or "Decl."), Rotech describes itself as "one of the largest providers of home medical equipment and related products and services… Continue Reading

Pool Supplier, NAMCO, Files for Bankruptcy In Delaware

Posted in Bankruptcy Case Summaries

Introduction On March 24, 2013, NAMCO, LLC ("NAMCO") filed a chapter 11 petition for bankruptcy in the United States Bankruptcy Court for the District of Delaware.  Based in Manchester, Connecticut, NAMCO sales swimming pool accessories and equipment throughout the Northeast and Mid-Atlantic United States.  See Declaration of Lee Diercks in Support of Chapter 11 Petition and… Continue Reading

Majestic Holdco Opinion Discusses Excusable Neglect

Posted in Opinions

Summary In an 8 page decision signed February 21, 2013, Judge Gross of the Delaware Bankruptcy Court denied a Motion for Enlargement of Administrative Claim, holding that the movant failed to prove excusable neglect. Judge Gross’s opinion is available here (the “Opinion”). The Opinion analyzes the motion pursuant to the excusable neglect factors provided in… Continue Reading

Ormet Corporation Files for Bankruptcy in Order to Facilitate Sale of Assets

Posted in Bankruptcy Case Summaries

Background On February 25, 2013 (the "Petition Date"), Ormet Corporation and various related entities filed chapter 11 petitions for bankruptcy in the United States Bankruptcy Court for the District of Delaware.  As stated in the company’s Declaration in Support of First-Day Motions and Applications (the "Decl.") at *4, Ormet began in 1956 as an aluminum manufacturer at… Continue Reading

Handy Hardware Seeks to Reorganize in Delaware Bankruptcy Court

Posted in Bankruptcy Case Summaries

Background On January 11, 2013, Handy Hardware Wholesale, Inc. ("Handy" or the "Debtor") filed a chapter 11 petition for bankruptcy in the United States Bankruptcy Court for the District of Delaware.  As stated in Handy’s court filings, the company is a wholesale purchaser of hardware supplies which it in turn sells to its members at a… Continue Reading

Personal Injury or Wrongful Death Claims against Chapter 11 Debtors: How to Proceed

Posted in Bankruptcy Law Basics

Summary When a company files for bankruptcy, they gain a number of protections under federal law.  One of these protections is the “automatic stay” provided by 11 U.S.C. § 362. The automatic stay makes it illegal to continue prosecuting, or to initiate, an action against the debtor who is in bankruptcy.  Even if that debtor… Continue Reading

Penson Worldwide Files for Bankruptcy in Delaware

Posted in Bankruptcy Case Summaries

Introduction On January 11, 2013, Penson Worldwide ("Penson"), a clearing and settlement provider for the investment trading industry, filed chapter 11 petitions for bankruptcy in the United States Bankruptcy Court for the District of Delaware.  In papers filed with the Bankruptcy Court, Penson describes itself as a company that provides "execution, clearing, custody, settlement, and… Continue Reading