Bankruptcy Case Summaries

On April 7, 2016, Pacific Sunwear of California, Inc. (aka PacSun, aka Pacific Sunwear) filed for chapter 11 protection in the United States Bankruptcy Court for the District of Delaware.

Through the bankruptcy, Pacific Sunwear is seeking bankruptcy protection in order to get rid of two thirds of its debt and restore its balance sheet,

The Spanish renewable energy solar company giant, Abengoa SA and its American affiliates, have filed for bankruptcy protection before the U.S. Bankruptcy Court for the District of Delaware.  The Spanish energy company continues talks with its banks and bondholders to agree on its plan to restructure billions of dollars in debt.


Abengoa is one

Court Pillars
Copyright: bbourdages / 123RF Stock Photo

In an Alert published today, Audrey Noll examines the Seventh Circuit’s recent decision in Official Comm. of Unsecured Creditors v. T.D. Invs. I, LLP (In re Great Lakes Quick Lube LP):

A landlord who terminates a lease before the tenant’s bankruptcy may later

On March 2, 2016, each of the seven debtors which collectively comprise Sports Authority filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code. The cases are jointly administered under Case No. 16-10527 before the Honorable Mary F. Walrath.   The “first day” hearing occurred on Thursday, March 3, 2016, and the “second day”

U.S. Court of Appeals for the Ninth Circuit
Copyright: ericbvd / 123RF Stock Photo

In an Alert published today, Audrey Noll examines the Ninth Circuit’s recent decision in U.S. Bank N.A. v. The Village at Lakeridge, LLC (In re The Village at Lakeridge, LLC), 2016 WL 494592 (9th Cir. Feb. 8, 2016):

Earlier this month, the Ninth Circuit

On February 2, 2016, Hancock Fabrics, Inc. and 6 affiliates filed for relief under chapter 11 of the Bankruptcy Code.  The cases are jointly administered under Case Number 16-10296 and presided over by Judge Shannon.  The first day hearing was held on February 3, 2016.  The second day hearing is scheduled for February 22, 2016

In a 16 page opinion released January 28, 2016 in the Casino Caribbean, et al. v. Money Centers of America adversary proceeding (Bank. D. Del. Adv. No. 14-50437), Judge Christopher S. Sontchi of the Delaware Bankruptcy Court granted the motion of Quapaw Casino to intervene in the adversary proceeding.  Judge Sontchi’s opinion is available here

On December 17, 2015, New Gulf Resources, LLC and 3 affiliated debtors (collectively, the “Debtors”) each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.  The cases are jointly administered under Case No. 15-12566 and are pending before the Honorable Brendan Linehan Shannon. The first day hearing was held on December 18, 2015.  The “second day” hearing is scheduled for January 19, 2016 at 12:00 p.m.

A majority of the information available about the Debtors can be found in one of three places: the Declaration of Danni Morris in Support of the Debtors’ First Day Motions [D.I. 13] (the “Declaration”); the website established by the Debtors’ claims agent, Prime Clerk,; and the website created by the Debtors to inform investors about the bankruptcy,  The Debtors constitute yet another in a growing stream of energy providers to have declared bankruptcy in recent months.  In this case, they were engaged in the acquisition, development, exploration and production of oil and natural gas properties, focused primarily in the East Texas Basin.  As of November 2015, the Debtors’ properties were producing approximately 3500 net barrels of oil equivalents per day.  Declaration at *3.  The intent of the Debtors in filing this bankruptcy is to ‘right-size’ their balance sheets so that they can move forward profitably.

The Debtors represent on their website (linked above and last accessed on 1/4/2016) that as of the petition date, they had entered into a Restructuring Support Agreement (“RSA”) with an ad hoc committee of creditors holding more than 72% of its second lien notes and 22% of its subordinated PIK notes, who have agreed, subject to the terms thereof, to provide at least $125 million of new capital to increase liquidity post-reorganization and permanently pay down existing first lien debt. Specifically, the RSA provides for $75 million in debtor-in-possession (“DIP”) secured credit financing to be funded by, and a $50 million rights offering to be backstopped by, the ad hoc committee RSA.  The Debtors are represented by Baker Botts L.L.P. and Young Conaway Stargatt & Taylor, LLP in these bankruptcy proceedings.
Continue Reading

On December 22, 2015, an involuntary bankruptcy petition was filed against Metrogate, LLC, in the United States District Court for the District of Delaware.  The petitioning creditors are various Taberna Preferred Funding entities.

For a link to a brief post discussing involuntary bankruptcies in general, click here.  Under Section 303 of the Bankruptcy Code,