WMC Mortgage, LLC, a Woodland Hills, CA-based mortgage loan originator that has been winding down operations since 2007, has filed a petition for relief under chapter 11 in the Bankruptcy Court for the District of Delaware (Case No. 19-10879).  According to the First Day Declaration, WMC ceased originating new mortgages in 2007 during the Great Recession and has since focused solely on winding up its affairs.  The Declaration further explains that since 2007, WMC has paid over $1.5 billion in settlements of numerous third party claims, primarily through funding from its parent, GE Capital.  The Debtor is seeking $25 million in debtor-in-possession financing to be provided by GE Capital.  Epiq is the proposed claims and noticing agent.  The case has been assigned to the Honorable Chief Judge Christopher S. Sontchi.

Contact Norman L. Pernick, G. David Dean or Myles R. MacDonald for more information regarding this matter.

Fuse, LLC, along with eight affiliates and subsidiaries (“Fuse Media”), has filed a petition for relief under chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 19-10872).  Fuse Media, a multicultural media company composed principally of two cable networks, Fuse and FM, is headquartered in Glendale, CA.  According to the First Day Declaration, Fuse Media has filed for chapter 11 as a result of the general headwinds facing the pay-tv industry, which led to Comcast and Verizon Fios dropping the Fuse network on December 31, 2018.  Fuse Media has filed a prepackaged plan of reorganization, which is supported by approximately 82% of its senior secured noteholders, and is seeking to have a combined confirmation and disclosure statement approval hearing during the first week of June 2019.  The Disclosure Statement can be found here and the Plan Supplement can be found hereKurtzman Carson Consultants is the proposed claims and noticing agent.  The cases have been assigned to the Honorable Kevin Gross.

Contact Norman L. Pernick, G. David Dean or Myles R. MacDonald for more information regarding this matter.

Upcoming Committee Formation Meeting: Tuesday, April 23, 2019

Case Name: 19-10844 (BLS)

Location: Delaware State Bar Association 405 King Street, 2nd Floor Wilmington, DE 19801

Notice of Formation Meeting for Official Committee of Unsecured Creditors can be found here. See the petition for relief.

Contact Norman L. Pernick, G. David Dean or Myles R. MacDonald for more information regarding this matter.

NanoMech, Inc., a manufacturer of proprietary lubricants, specialty chemicals, pastes, paints, coatings, and advanced textiles based in Springdale, Arkansas, has filed a petition for relief under chapter 11 in the Bankruptcy Court for the District of Delaware (Case No. 19-10851).  The Petition estimates NanoMech’s assets and liabilities to both be between $10 – $50 million.  According to the First Day Declaration, NanoMech enters chapter 11 intending to either reorganize its capital structure or sell its assets under section 363 of the Bankruptcy Code.  The case has been assigned to the Honorable Chief Judge Christopher S. Sontchi.

Contact Norman L. Pernick, G. David Dean or Myles R. MacDonald for more information regarding this matter.

Achaogen, Inc. (NASDAQ: AKAO), a biopharmaceutical company focused on the development and commercialization of innovative antibiotic treatments headquartered in South San Francisco, CA, has filed a petition for relief under chapter 11 in the Bankruptcy Court for the District of Delaware (Case No. 19-10844).  According to the First Day Declaration, Achaogen has filed as a result of an industry-wide pullback from antibiotic research, which has dried up the financing needed by Achaogen to commercialize its primary product, ZEMDRI.  The First Day Declaration further explains that Achaogen has engaged in a prepetition marketing process, which did not result in any acceptable bids, and enters chapter 11 intending to sell substantially all of its assets under section 363 of the Bankruptcy Code.  Kurtzman Carson Consultants is the proposed claims and noticing agent.  The case has been assigned to the Honorable Brendan Linehan Shannon.

Contact Norman L. Pernick, G. David Dean or Myles R. MacDonald for more information regarding this matter.

 

Upcoming Committee Formation Meeting: Monday, April 15, 2019

Case Name: 19-10729 (MFW)

Location: Sheraton Suites 422 Delaware Avenue Wilmington, DE 19801

Notice of Formation Meeting for Official Committee of Unsecured Creditors can be found here. See the petition for relief .

Contact Norman L. Pernick, G. David Dean or Myles R. MacDonald for more information regarding this matter.

Upcoming Committee Formation Meeting: Wednesday, April 10, 2019

Case Name: 19-10684  (KG)

Location: The Doubletree Hotel 700 King street Wilmington, DE 19801

Notice of Formation Meeting for Official Committee of Unsecured Creditors can be found here. See the petition for relief.

Contact Norman L. Pernick, G. David Dean or Myles R. MacDonald for more information regarding this matter.

L.K. Bennett U.S.A., Inc., the New York, NY-based subsidiary of British luxury retailer L.K. Bennett Limited, has filed a petition for relief under chapter 11 in the Bankruptcy Court for the District of Delaware (Case No. 19-10760).  First day pleadings have not yet been filed.  L.K. Bennett Limited entered administration proceedings under the insolvency laws of the United Kingdom last month.  According to the shareholder resolutions attached to the Debtor’s petition, the Debtor intends to sell substantially all of its assets under section 363 of the Bankruptcy Code.  No claims and noticing agent has been proposed.  The case has been assigned to the Honorable Kevin Gross.

Contact Norman L. Pernick, G. David Dean or Myles R. MacDonald for more information regarding this matter.

Hexion Holdings LLC, along with seventeen subsidiaries and affiliates, has filed a petition for relief under chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 19-10684).  Hexion, headquartered in Columbus, Ohio, is a chemicals company specializing in thermoset resins.  According to the First Day Declaration, Hexion, although profitable, has filed for chapter 11 as a result of an oversized debt load and intends to de-lever through its chapter 11 cases.  A press release issued by Hexion further explains that Hexion enters chapter 11 having entered into a restructuring support agreement with a majority of the holders of each of its notes issuances and will seek approval of up to $700 million in DIP financing to be provided by a consortium of lenders.  Omni Management Group is the proposed claims and noticing agent.  The cases have been assigned to the Honorable Kevin Gross.

Contact Norman L. Pernick, G. David Dean or Myles R. MacDonald for more information regarding this matter.

Southcross Energy Partners, L.P. (OTCMKTS: SXEE), along with twenty-six affiliates and subsidiaries, has filed a petition for relief under chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 19-10702).  Southcross is a midstream provider of services to the natural gas industry, whose operations are concentrated in the Eagle Ford Shale region of South Texas.  A press release issued by Southcross further explains that Southcross enters chapter 11 intending to engage in a marketing process for the sale of substantially all of its assets, but may ultimately engage in a standalone restructuring.  According to the First Day Declaration, Southcross—whose “business depends almost entirely on the demand for processing of newly extracted natural gas”—has filed as a result of the continued headwinds facing the natural gas industry.  The First Day Declaration further explains that Southcross intends to pay all of its trade creditors in the ordinary course of business and is seeking approval of a $255 million DIP Financing facility provided by certain of its prepetition lenders, which will include up to $127.5 million in new money.  Kurtzman Carson Consultants is the proposed claims and noticing agent.  The cases have been assigned to the Honorable Mary F. Walrath.

Contact Norman L. Pernick, G. David Dean or Myles R. MacDonald for more information regarding this matter.