Upcoming Committee Formation Meeting:Wednesday, March 20

Case Name: 19-10488 (LSS)

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 petitions for relief.

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

CTI Foods, LLC, along with sixteen affiliates and subsidiaries, has filed a petition for relief under chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 19-10497).  CTI, headquartered in Saginaw, TX, is one of the leading independent providers of custom food solutions to major chain restaurants in North America.  According to the First Day Declaration, CTI has filed as a result of competitive pressures combined with increased debt from capital outlays made to improve operations and food safety at CTI’s facilities.  According to a press release issued by CTI, CTI enters chapter 11 having agreed to a restructuring support agreement with its prepetition equity sponsor and a large segment of its secured lenders (comprising ~79% of CTI’s first lien debt and ~52% of CTI’s second lien debt, by principal amount).  CTI has filed a prepackaged plan of reorganization and seeks to have a joint hearing on confirmation of the prepackaged plan and approval of CTI’s disclosure statement on May 3, 2019.  Prime Clerk is the proposed claims and noticing agent.  The cases have 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.

Z Gallerie, LLC and Z Gallerie Holding Company, LLC, have filed petitions for relief under chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 19-10488).  Although a First Day Declaration has not yet been filed, the Debtors have issued a press release announcing that they intend to close as many as seventeen stores and will seek approval of $28 million in DIP Financing to be provided by their existing secured lender, KeyBank NA.  The Debtors appear to intend to pursue a “toggle” reorganization, and have filed both a bid procedures motion and a plan of reorganization.  A creditor matrix can be found here.  Stretto is the proposed claims and noticing agent.  The cases have been assigned to the Honorable Laurie Selber Silverstein.

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

F+W Media, Inc., along with eight affiliates and subsidiaries, has filed a petition for relief under chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 19-10479).  F+W Media, headquartered in New York, NY, is a leading publisher of specialized content for enthusiast communities (e.g., crafts, art, writing, design, knitting, quilting, and outdoors).  According to the First Day Declaration, F+W Media effectuated an out-of-court debt for equity swap with its senior creditors in May 2017 and replaced its management in January 2018, but has filed as a result of continued operational difficulties and intends to sell substantially all of its assets under section 363 of the Code.  F+W Media is seeking approval of $8 million in super priority DIP financing from a subset of its existing senior lenders.  A consolidated list of creditors can be found here.  Epiq 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.

Diesel USA Inc., the US subsidiary of high-end fashion retailer Diesel S.p.A., has filed a petition for relief under chapter 11 in the Bankruptcy Court for the District of Delaware (Case No. 19-10432).  According to the First Day Declaration, Diesel USA, which is headquartered in New York, NY, has filed primarily as a result of sustained operating losses caused by ill-timed investments by prior management in long-term storefront leases.  The First Day Declaration further explains that Diesel does not have significant secured debt, is paying trade creditors in the ordinary course of business, intends to shortly file a Plan and Disclosure Statement to effectuate an operational restructuring and seeks to have a combined hearing on approval of the Disclosure Statement and Confirmation of the Plan on April 11, 2019.  Stretto is the proposed claims and noticing agent.  The case has been assigned to the Honorable Christopher S. Sontchi.

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

Upcoming Committee Formation Meeting: Friday, March 1, 2019

Case Name: 19-10323 (CSS)

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.

Upcoming Committee Formation Meeting: Monday, March 4, 2019

Case Name: 19-10289 (LSS)

Location: The Doubletree Hotel 700 King Street ,Salon C, 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, February 27, 2019

Case Name: 19-10316 (LSS)

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.