Recent Developments

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Starion Energy, Inc., along with two subsidiaries and affiliates, has filed a petition for relief under chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 18-12608).  Starion, headquartered in Middlebury, Connecticut, is a competitive retailer of electricity operating in eleven states.  According to the First Day Declaration, Starion has filed for chapter 11 relief because of a lack of working capital—litigation commenced against Starion by the Commonwealth of Massachusetts on October 15, 2018, has resulted in over $3.5 million of Starion’s funds being frozen pursuant to a preliminary injunction.  Starion has filed an petition for relief Adversary Complaint seeking turnover of the frozen funds.  No claims and noticing agent has been proposed. 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.

Prescription Advisory Systems & Technology, Inc. (“PAST”), a medical technology and software company, has filed a petition for relief under chapter 11 in the Bankruptcy Court for the District of Delaware (Case No. 18-12601).  PAST, based in Jenkintown, PA, estimates its assets to be between $0 – $50,000 and its liabilities to be between $1–$10 million.  The Board Resolution attached to the Petition discloses that PAST is seeking approval of up to $125,000.00 in DIP Financing.  The First Day Declaration explains that PAST has filed in order to effectuate a balance sheet restructuring supported by a majority of its noteholders.  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: Tuesday, November 13, 2018

Case Name: 18-12491 (CSS)

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.

Upcoming Committee Formation Meeting: Thursday, November 15, 2018

Case Name: 18-12537 (MFW)

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: Friday, November 09, 2018

Case Name: 18-12439 (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.

PGHC Holdings, 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. 18-12537).  Based in Dedham, MA, the Debtors collectively own and operate the Papa Gino’s and DeAngelo’s restaurant chains.  The Petition estimates the Debtors’ liabilities to be between $50-$100 million and that the Debtors’ assets will be insufficient for a distribution to unsecured creditors.  The board resolutions attached to the petition contemplate a sale under section 363 of the Bankruptcy Code and authorize the Debtors’ entry into an asset purchase agreement with WC Purchaser LLC for substantially all of the debtors’ assets.  Epiq Corporate Restructuring, LLC 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.

Dixie Electric, LLC, along with twelve affiliates and subsidiaries, has filed a petition for relief under chapter 11 in the Bankruptcy Code for the District of Delaware (Lead Case No. 18-12477).  Dixie Electric, based in Houston, Texas, is a provider of electrical infrastructure materials and services to the upstream and midstream oil industries.  According to the First Day Declaration, Dixie Electric has filed for chapter 11 protection as a result of decreased demand, a tightening labor market and unprofitable lump sum contracts.  Last week, Dixie Electric announced that it had entered into a restructuring support agreement with an ad hoc group of its secured lenders, and would enter chapter 11 with a pre-packaged plan of reorganization.  Dixie Electric is seeking to have a combined hearing on approval of its disclosure statement and confirmation of its prepackaged plan of reorganization held on December 13, 2018.  Prime Clerk LLC 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: Friday, November 02, 2018

Case Name: 18-12394 (KJC)

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.

Egalet Corporation (OCTQX: EGLT), along with two of its affiliates and subsidiaries, has filed a petition for relief under chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 18-12439).  Egalet, based in Wayne, Pennsylvania, is a specialty pharmaceutical company that develop and manufactures pain-relief medications.  According to the First Day Declaration, Egalet began exploring strategic restructuring options after challenges in monetizing its products.  The First Day Declaration further discloses that Egalet has determined that the acquisition of Iroko Pharmaceuticals Inc., a pharmaceutical company based in Philadelphia, PA, presented the most viable restructuring option for Egalet and Egalet enters chapter 11 having entered into an agreement to acquire certain assets and liabilities of Iroko.  Egalet has filed a Joint Plan of Reorganization and intends to pay its unsecured creditors in full.  The Disclosure Statement can be found here.  No claims or noticing agent has been proposed.  The cases have 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.

NSC Wholesale Holdings, LLC, along with 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. 18-12394).  The Debtors operate a chain of general merchandise closeout stores in the northeastern United States under the name “National Wholesale Liquidators.”  According to the First Day Declaration, the Debtors have filed for chapter 11 relief as a result of several unexpected financial and operational setbacks, as well as the industry-wide headwinds facing brick and mortar retailers.  The Debtors have filed a motion for continued use of their pre-petition cash collateral, a $20 million revolving loan from Capital One, NA.  The Debtors are also seeking to assume a consulting agreement with a joint venture between Hilco Merchant Resources and Gordon Brothers, and to proceed with store closings and inventory sales.  Omni Management Group is the proposed claims agent.  The cases have been assigned to the Honorable Kevin J. Carey.

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