About This Blog
Current decisions, news and commentary regarding commercial bankruptcy cases in Delaware.
Morris James Blogs
Morris James LLP is pleased to announce that fourteen attorneys in six separate practice areas have been ranked among the leading Delaware lawyers in the 2015 edition of Chambers USA: America's Leading Lawyers for Business. The Chancery, Intellectual Property and Labor & Employment practice areas also received recognition from Chambers USA. More ›
On Friday, May 15, 2015, Golden County Foods, Inc. (“GCF”), a business that manufactures prepared foods, filed a voluntary chapter 11 petition in the United States Bankruptcy Court for the District of Delaware. It was joined by two affiliates, GCF Franchisee, Inc. (“GCFF”)and GCF Holdings II, Inc. (“Holdings”). The cases are docketed as case no. 15-11062 and have been assigned to The Honorable Kevin Gross. More ›
A just-issued Court of Chancery decision clarifies, and possibly expands, creditors' rights. In 2007, the Delaware Supreme Court ruled that a corporation's creditors may sue its board of directors for violating its fiduciary duties, but only after the corporation became insolvent, in North American Catholic Educational Programming Foundation v. Gheewalla, 930 A.2d 92 (Del. 2007). While creditors continued to be unable to sue directly, Gheewalla did permit them to file derivative suits in those circumstances. For insolvent entities, D&O insurance may provide a previously unavailable source of funds to pay creditors. Hence, Gheewalla was an important decision. More ›
Delaware Super Lawyers® magazine has recognized four Morris James partners as top legal counsel in Delaware and four "Rising Stars®" attorneys. "Rising Stars®” is a recognition for lawyers who are 40 or under, or who have been practicing for 10 years or less. “Delaware Super Lawyers®” is a listing that reflects the top five percent of the attorneys statewide. More ›
Facing An Involuntary Chapter 7 Case In Colorado, Airborne Media Group, Inc. Files a Voluntary 11 In Delaware
On May 8, 2015, Airborne Media Group, Inc. filed a voluntary chapter 11 petition in the United States Bankruptcy Court for the District of Delaware. The voluntary petition was filed after several creditors commenced an involuntary chapter 11 case in Colorado on April 17, 2015. The chapter 11 case has been docketed as case no. 15-11018 and has been assigned to The Honorable Kevin Gross.
In support of the chapter 11 filing, Airborne filed the Declaration of Cordell R. Brown, CEO of the Debtor. According to the Declaration, the Debtor started in 2011 as an idea to permit patrols at a bar or restaurant to listen to the muted live sports or other events being shown in the venue through their smart phone or ipad. The Debtor created smartphone applications and other products to permit this device interactivity. As of the time of the filing, the Debtor had 9 employees, over 100 equity holders (with $6 million invested) and a $250,000 unsecured line of credit and about $1 million of unsecured debt (not counting a judgment obtained by certain of the shareholders. More ›
On May 4, 2015, one of the largest for-profit post-secondary education companies in the United States and Canada, Corinthian Colleges, Inc., and 24 of its affiliates, filed voluntary chapter 11 petitions in the Bankruptcy Court for the District of Delaware. The cases are docketed as case no. 15-10952 and have been assigned to the Honorable Kevin J. Carey. The petition lists assets of approximately $19.2 million and liabilities of $143.1 million.
In support of the petitions, the Debtors filed the Declaration of William J. Nolan, the Chief Restructuring Officer of the Debtors and a Senior Managing Director with FTI Consulting, Inc. According to the Nolan Declaration, as of March 31, 2015, the Debtors had over 100 campuses, 74,000 students and 10,000 employees. The Nolan Declaration states that in addition to approximately $105 million of outstanding obligations under their prepetition secured credit agreement, the Debtors have another $100 million of unsecured debt owing to landlords, trade creditors, lessors, employees and students, as well as regulatory refunds, fines and penalties. More ›
On April 19, 2015, Frederick’s of Hollywood, Inc., a well-known retailer of women’s lingerie, filed for chapter 11 protection in the United States Bankruptcy Court for the District of Delaware. In addition to the petition filed by Frederick’s, petitions were filed by five other related entities. The cases have been assigned to The Honorable Kevin Gross, and are docketed as case no. 15-10836.
William Soncini, the Chief Operating Officer for each of the debtors since July 2014, has filed a declaration in support of the various petitions. According to the Soncini declaration, the Debtors sell high quality women’s apparel and related products under their proprietary Frederick’s of Hollywood® brand. According to Mr. Soncini, the debtors previously went through a bankruptcy filing between 2000 and 2003. Recently, “in the face of growing liquidity issues and concerns about their ability to continue operating as a publicly listed company and a going concern, the Debtors were taken private by a consortium consisting of HGI Funding, LLC . . . , Tokarz Investments, LLC, TTG Apparel, LLC, Arsenal group, LLC, Fursa Alternatives Strategies LLC and William F. Harley, III, . . . , for an aggregate transaction value of approximately $24.8 million.” More ›
On April 6, 2015, Northwest Missouri Holdings, Inc. and three affiliates, filed voluntary chapter 11 petitions in Delaware. The three affiliates are Oregon Farmers Mutual Long Distance Inc., The Oregon Farmers Mutual Telephone Company and South Hold Cablevision, Inc. As of this post, only the petition is on file. The case is docketed as case no. 15-10728 and has been assigned to The Honorable Brendan Linehan Shannon.
On April 2, 2015, Littleford Day, Inc., located in Florence, Kentucky, filed a chapter 11 bankruptcy petition in Delaware. “[A] recognized leader for the supply of Industrial Mixers, Dryers and Reactors”, according to its website, www.littleford.com, Littleford has been in business since 1882. The case is docketed as case no. 15-10722 and has been assigned to The Honorable Kevin Gross. More ›
Morris James LLP has formed a Data Privacy and Information Governance Group. The Data Privacy and Information Governance Group is an interdisciplinary team of corporate and fiduciary duty attorneys, attorneys well-versed in electronic data storage and discovery, attorneys with bankruptcy and insurance-related backgrounds, and non-attorney IT staff knowledgeable about trends in data security and technology. Together, the group advises boards of directors and officers in assessing and managing risk and defending claims for alleged breach of fiduciary duty arising from data breaches. More ›