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Current decisions, news and commentary regarding commercial bankruptcy cases in Delaware.
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On June 29, 2015, Baha Mar Ltd, the development company behind a $3.5 billion Bahamian resort and its affiliated debtors, filed for chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in the U.S. District Court of Delaware. Attached here is a copy of the petition. Debtors offer the declaration of Thomas M. Dunlap in support of their first day pleadings. A copy of the first day declaration is here. More ›
On May 21, 2015, the United States Court of Appeals for the Third Circuit approved the settlement and dismissal of chapter 11 bankruptcy cases through a structured dismissal in rare instances. See Official Committee of Unsecured Creditors v. CIT Group/Business Credit Inc., Case No. 14-1465, -- F.3d --, 2015 WL 2403443 (May 21, 2015). In the case before it, the Court approved the structured dismissal of the Chapter 11 bankruptcy case even where the dismissal called for a distribution that did not specifically adhere to the priority scheme set forth in Bankruptcy Code section 507. More ›
On June 25, 2015, Molycorp, Inc., the U.S. producer of rare earths, and its North American subsidiaries filed for chapter 11 bankruptcy protection. A copy of the bankruptcy petition is attached here. Debtors offer the declaration of Michael F. Doolan in support of their requested first day motions, a copy of which is attached here. More ›
On Sunday, June 14, 2015, Colt Holding Company LLC and 9 affiliates, including Colt Defense, LLC filed voluntary chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware. The case is docketed as case no. 15-11296 and has been assigned to The Honorable Laurie Selber Silverstein. Filed in support of the petition is the Declaration of Keith A. Maib, the Chief Restructuring Officer of Colt Defense, LLC. More ›
On June 9, 2015, Boomerang Tube, LLC and two affiliates, BTCSP, LLC and BT Financing, Inc., filed chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware. The cases has been assigned to The Honorable Mary F. Walrath and are docketed as case no. 15-11247. More ›
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 ›