New Delaware Chapter 11 Filing – Orchids Paper Products Company et al. (Lead Case No. 19-10729)
Orchids Paper Products Company, along with two subsidiaries and affiliates, has filed a petition for relief under chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 19-10729). Orchid, based in Brentwood, TN, is a national supplier of consumer tissue products (i.e., paper towels, bathroom tissue and paper napkins). A First Day Declaration has not yet been filed. According to a press release issued by Orchid, Orchid enters chapter 11 intending to sell substantially all of its assets to a stalking horse bidder, Orchid Investments LLC, which is indirectly owned by a fund affiliated with Black Diamond Capital Management, L.L.C. and Brant Paper Investment Company LLC. Prime Clerk is the proposed claims and noticing agent. The cases have been assigned to the Honorable Mary F. Walrath.
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.