Kraus Carpet Inc., along with five subsidiaries and affiliates, has filed a petition for recognition of a foreign proceeding under chapter 15 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Lead Case No. 18-12057). According to the accompanying Declaration, Kraus, based in Waterloo, Ontario, Canada, operates a carpet and flooring distribution network throughout the United States and Canada. Kraus is seeking recognition of its foreign proceeding under the Companies’ Creditors Arrangement Act, which is pending before the Ontario Superior Court of Justice (File No. CV-18-604759), as a foreign main proceeding. Kraus is also seeking to sell its distribution business, pursuant to section 363 of the Bankruptcy Code and an order to be entered by the Canadian Court, to Roberts Company Canada Ltd. 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.