New Delaware Chapter 11 Filing – CTI Foods, LLC, et al.

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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.

As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.

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