New Delaware Chapter 11 Filings – DirectBuy Holdings, Inc. et al.
DirectBuy Holdings, Inc., and seven of its U.S. affiliates have filed chapter 11 petitions before the United States Bankruptcy Court for the District of Delaware (lead case no. 16-12435). The cases have been assigned to the Honorable Christopher S. Sontchi. The debtors operate a members-only buying club. The debtors have entered into an asset purchase agreement with a new entity formed at the direction of a majority of their pre-petition secured lenders and filed a motion seeking authority to sell substantially all of their business assets on a going concern basis pursuant to a competitive sale process. The debtors have also filed a motion seeking relief to protect the interests of their members. The petitions (including consolidated list of top 40 creditors), first day declaration and docket are available through Prime Clerk.
Contact Norman L. Pernick and Nicholas J. Brannick for more information.
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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