On September 27, 2022, Phoenix Services Topco LLC, a steel mill service provider with approximately 2,600 employees, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 22-10906).  The company reports $500 million to $1 billion in both assets and liabilities.  According to the First Day Declaration, the company will seek approval of DIP financing from an ad hoc group of first-lien lenders, which includes up to $50 million in new money and a $150 million roll up.  Under the terms of the proposed DIP, the deadline to confirm a plan of reorganization is 155 days from the petition date, or March 1, 2023.

Cole Schotz does not represent the Debtors in this case.  We are posting this for informational purposes only.  If you have received a notice and have any questions, you should contact Debtors’ counsel.

Cole Schotz’s nationally renowned Bankruptcy & Corporate Restructuring group practices in Delaware, Maryland, New Jersey, New York, and Texas.

On August 28, 2022, Hauppauge, N.Y.-based Packable Holdings, LLC, a privately-owned tech-enabled e-commerce company, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 22-10797).  The company reports $100 million to $500 million in both assets and liabilities.  According to the first day declaration, the company was unable to obtain a long-term solution to its liquidity needs and was forced to commence a wind-down of its operations.  Therefore, the company filed for chapter 11 protection to facilitate the sale of its assets and ensure that the wind-down is conducted in an orderly and value-maximizing manner.

Cole Schotz does not represent the Debtors in this case.  We are posting this for informational purposes only.  If you have received a notice and have any questions, you should contact Debtors’ counsel.

Cole Schotz’s nationally renowned Bankruptcy & Corporate Restructuring group practices in Delaware, Maryland, New Jersey, New York, and Texas.

On August 23, 2022, College Park, Georgia-based ExpressJet Airlines LLC, a leading regional airline connecting millions of passengers to North America monthly, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 22-10787).  The company reports $10 million to $50 million in both assets and liabilities.  In the First Day Declaration, the company states it failed to: (i) grow sufficiently to be able to spread overhead costs across a growing fleet and achieve competitive unit costs; (ii) generate sufficient revenues, particularly through commissions and incremental revenues from bundling hotel and air travel offerings; and (iii) maintain costs at business-plan levels.  By filing for chapter 11 protection, the company seeks to market and sell its physical assets, which include valuable new and used commercial aircraft parts.  The company also states that if a third-party investor wants to acquire the rights to the company’s FAA-issued operating certificate and associated intangible property, the company will pursue a potential sale of the residual entity associated with that asset.

Cole Schotz does not represent the Debtor in this case.  We are posting this for informational purposes only.  If you have received a notice and have any questions, you should contact Debtor’s counsel.

Cole Schotz’s nationally renowned Bankruptcy & Corporate Restructuring group practices in Delaware, Maryland, New Jersey, New York, and Texas.

On August 23, 2022 (the “Petition Date”), Rochester, New York-based Carestream Health, Inc. along with several affiliates (the “Debtors”), which provide worldwide X-ray imaging systems for medical, non-destructive testing and precision contract coating services for industrial, medical and electronic applications, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 22-10778).  The company reports $1 billion to $10 billion in both assets and liabilities.  The terms of the proposed restructuring are memorialized in a restructuring support agreement (the “RSA”) that serves as the foundation of the prepackaged Plan.  Under the RSA, the Debtors will eliminate approximately $470 million of prepetition funded debt and raise up to $75 million of new equity capital, while also leaving general unsecured claims unimpaired.  The Debtors state that as of the Petition Date, the Plan has been fully solicited and accepted by all creditor classes entitled to vote, including lenders collectively holding approximately 73% of the Debtors’ prepetition first lien revolver and term loan debt and approximately 98% of the Debtors’ prepetition second lien term loan debt.

Cole Schotz does not represent the Debtors in this case.  We are posting this for informational purposes only.  If you have received a notice and have any questions, you should contact Debtors’ counsel.

Cole Schotz’s nationally renowned Bankruptcy & Corporate Restructuring group practices in Delaware, Maryland, New Jersey, New York, and Texas

On August 6, 2022, OSG Group Holdings, Inc., which provides transactional, marketing, and payment solutions to various industries, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 22-10718).  The company also filed a prepackaged plan of reorganization.  Under the plan, OSG’s secured debt and unsecured notes would receive a combination of new and refinanced debt and substantially all reorganized equity, while unsecured claims would receive payment in full or be reinstated.  The company reports $500 million to $1 billion in assets and $1 to $10 billion in liabilities.

Cole Schotz does not represent the Debtors in these cases.  We are posting this for informational purposes only.  If you have received a notice and have any questions, you should contact Debtors’ counsel.

Cole Schotz’s nationally renowned Bankruptcy & Corporate Restructuring group practices in Delaware, Maryland, New Jersey, New York, and Texas.

On July 11, 2022, genomic sequencing company GenapSys Inc. of Redwood City, CA filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 22-10621). The company reports $10 million to $50 million in both assets and liabilities.

Cole Schotz does not represent the Debtor in this case.  We are posting this for informational purposes only.  If you have received a notice and have any questions, you should contact Debtor’s counsel.

Cole Schotz’s nationally renowned Bankruptcy & Corporate Restructuring group practices in Delaware, Maryland, New Jersey, New York, and Texas.

On July 5, 2022, New York-based cryptocurrency exchange, Voyager Digital Holdings, Inc. along with its publicly traded Canadian affiliate, Voyager Digital Ltd., filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of New York (Case No. 22-10943). The company reports $1 to $10 billion in both assets and liabilities.  The Debtors will pursue reorganization both through Chapter 11 in the U.S. and under the Companies’ Creditors Arrangement Act in Canada.

On July 5, 2022, the Toronto stock exchange halted trading of Voyager Digital Ltd.  The Debtors say their filings were driven by the recent drops in cryptocurrency prices and a significant payment default from borrower Three Arrow Capital, who filed its own Chapter 15 petition on July 1.  The Debtors are pursuing a plan sponsor to effectuate a stand-alone restructuring, which, as contemplated, would entitle account holders to certain liquid assets, recoveries from prepetition borrowers, and nearly all reorganized common equity.

Cole Schotz does not represent the Debtors in these cases.  We are posting this for informational purposes only.  If you have received a notice and have any questions, you should contact Debtors’ counsel.

Cole Schotz’s nationally renowned Bankruptcy & Corporate Restructuring group practices in Delaware, Maryland, New Jersey, New York, and Texas.

On July 5, 2022, Scandinavian airline SAS AB, along with several affiliates, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of New York (Case No. 22-10925), reporting $10 to $50 billion in assets and $1 to $10 billion in liabilities. According to SAS, the COVID-19 pandemic and related policies dramatically cut its revenue during fiscal years 2020 and 2021 by approximately 56% and 70%, respectively, compared to fiscal year 2019. The company now seeks to restructure its debt and its aircraft lease agreements, which it believes are significantly above market. The company continues to negotiate DIP lending for approximately $700 million.

Cole Schotz does not represent the Debtors in these cases.  We are posting this for informational purposes only.  If you have received a notice and have any questions, you should contact Debtors’ counsel.

Cole Schotz’s nationally renowned Bankruptcy & Corporate Restructuring group practices in Delaware, Maryland, New Jersey, New York, and Texas.

On June 30, 2022, Palo Alto, California-based mobile technology retailer pairing company Enjoy Technology, Inc., along with two affiliates,  who provide a revolutionary commerce-at-home experience for consumers through the companies’ network of mobile retail stores, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 22-10580).  The company reports $100 million to $500 million in assets and $10 million to $50 million in liabilities.  The company states that since going public in 2021 through a special purpose acquisition company transaction, the company has been unable to achieve profitability due to the ongoing operating costs associated with the development and growth of their platform.  The company says they have received a proposal and signed letter of intent from Asurion LLC for a sale of substantially all of their U.S. assets.  Asurion has agreed to provide a small prepetition short-term bridge loan of $2.5 million and has agreed to fund a DIP facility of $55 million, including $52.25 million of new money and an interim rollup of the prepetition bridge loan.  The companies state they have an imminent need for the DIP because of their deteriorating cash position, which is currently insufficient to fund critical expenses, including payroll.

Cole Schotz does not represent the Debtors in this case.  We are posting this for informational purposes only.  If you have received a notice and have any questions, you should contact Debtors’ counsel.

Cole Schotz’s nationally renowned Bankruptcy & Corporate Restructuring group practices in Delaware, Maryland, New Jersey, New York, and Texas.

On June 30, 2022, Plano, Texas-based mortgage lender First Guaranty Mortgage Corp. (“FGMC”), filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 22-10584).  FGMC reports $500 million to $1 billion in both assets and liabilities.  According to a press release from FGMC, the filing has no impact on closed mortgages and FGMC is finalizing DIP financing that will enable it to close and fund approved consumer loans, under existing terms and conditions.  In addition, FGMC has further identified one or more potential partners to provide optionality to support the pipeline of in-process loans.  FGMC also says that the bankruptcy has “no impact on closed mortgages” and that it is in the process of developing an employee incentive and retention program.

Cole Schotz does not represent the Debtor in this case.  We are posting this for informational purposes only.  If you have received a notice and have any questions, you should contact Debtor’s counsel.

Cole Schotz’s nationally renowned Bankruptcy & Corporate Restructuring group practices in Delaware, Maryland, New Jersey, New York, and Texas.