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.
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