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.
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