Katy Industries, Inc., (OTC:KATY) a manufacturer, importer and distributor of commercial cleaning solutions and customer storage products, and 13 of its affiliates, has filed for chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware (Lead Case No. 17-11101 KJC). The petiton lists between $1 and $10 million in assets and between $50 and $100 million in liabilities. According to the First Day Declaration, the Debtors intend to sell substantially all of their assets and are entering chapter 11 with Jansan Acquisition, LLC, a newly created entity co-owned by Highway Capital, LLC, a third party investor, and affiliates of Victory Park Management, LLC as administrative agent for the prepetition second lien lender, as the Stalking Horse. The Debtors secured $7,500,000 in DIP financing from Jansan Acquisition, LLC. The Debtors are seeking the joint administration of these cases. JND Corporate Restructuring is the proposed claims agent. The Honorable Kevin J. Carey will be presiding over these cases. The company has issues a press release that can be found here.
Contact Norman L. Pernick and Nicholas J. Brannick for more information.