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