New Delaware Chapter 11 Filing – Diesel USA Inc.
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.
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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