New Delaware Chapter 15 Filing – Kraus Carpet Inc., et al.
Kraus Carpet Inc., along with five subsidiaries and affiliates, has filed a petition for recognition of a foreign proceeding under chapter 15 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Lead Case No. 18-12057). According to the accompanying Declaration, Kraus, based in Waterloo, Ontario, Canada, operates a carpet and flooring distribution network throughout the United States and Canada. Kraus is seeking recognition of its foreign proceeding under the Companies’ Creditors Arrangement Act, which is pending before the Ontario Superior Court of Justice (File No. CV-18-604759), as a foreign main proceeding. Kraus is also seeking to sell its distribution business, pursuant to section 363 of the Bankruptcy Code and an order to be entered by the Canadian Court, to Roberts Company Canada Ltd. The cases have been assigned to the Honorable Kevin Gross.
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