New Delaware Chapter 11 Filing – Katy Industries, Inc. (17-11101)
Katy Industries, Inc., (OTC:KATY) a manufacturer, importer and distributor of commercial cleaning solutions and customer storage products, and 13 of its affiliates, has filed for chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware (Lead Case No. 17-11101 KJC). The petiton lists between $1 and $10 million in assets and between $50 and $100 million in liabilities. According to the First Day Declaration, the Debtors intend to sell substantially all of their assets and are entering chapter 11 with Jansan Acquisition, LLC, a newly created entity co-owned by Highway Capital, LLC, a third party investor, and affiliates of Victory Park Management, LLC as administrative agent for the prepetition second lien lender, as the Stalking Horse. The Debtors secured $7,500,000 in DIP financing from Jansan Acquisition, LLC. The Debtors are seeking the joint administration of these cases. JND Corporate Restructuring is the proposed claims agent. The Honorable Kevin J. Carey will be presiding over these cases. The company has issues a press release that can be found here.
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.
Join Our Mailing List
Stay up to date with the latest insights, events, and more