April 25, 2019 – The Debtors' Official Committee of Unsecured Creditors (the “Committee”) filed a motion to requesting conversion of the Debtors'  Chapter 11 cases to cases under Chapter 7 [Docket No. 1152], arguing that the ill-fated, ill-managed  Debtors are now insolvent and that the "bleeding should come to an end." The Committee aslo filed…

April 25, 2019 – The Debtors objected [Docket No. 337] to a motion filed by the their Official Committee of Unsecured Creditors' (the "Committee," joined in objecting by Delaware Trust Company as Indenture trustee for the Debtors’ unsecured 5.25% Senior Notes) which requested an adjournment of a scheduled Disclosure Statement hearing [Docket No. 268]. The…

April 25, 2019 – The Debtors filed a Revised First Amended Plan and a related Disclosure Statement [Docket Nos. 348 and 349], each of which include redlines showing changes from versions of the documents filed on April 22, 2019 [Docket Nos. 321 and 329, respectively].  The Court subsequently (i) approved the adequacy of the Disclosure…

April 24, 2019 – The Debtors' Official Committee of Unsecured Creditors (the “Committee”) objected [Docket No. 331] to the Debtors’ Disclosure Statement, arguing that it is woefully inadequate as to information on the Recapitalization Transaction and amounts to nothing more than a "placeholder" for a "patently unconfirmable Plan." The Committe is not reticent as to…

April 24, 2019 – The U.S. Trustee for Region 3 objected to the Debtors' bidding procedures motion, arguing that the proposed break-up and expense reimbursement fees "are not truly bid protections, but rather blocking devices to make it more costly for other bidders to propose a qualified bid. Approving a Break-Up Fee and Expense Reimbursement…

April 23, 2019 − WMC Mortgage LLC ("WMC" or the "Debtor") filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 19-10879. The Company, an indirectly held subsidiary of General Electric Company ("GE") historically involved in the origination of home mortgage loans, is represented by Russell C….

April 23, 2019 – The Debtor requested Court authority to (i) access $25.0mn in debtor-in-possession (“DIP”) financing, ($1.8mn on an interim basis) to be provided by GE Capital US Holdings, Inc. ("GECUSH," the sole member of the DebtorFN1) [Docket No. 7] and (ii) file certain confidential information related to the DIP financing (ie, details as…

April 22, 2019 − Fuse, LLC and eight affiliated Debtors (“Fuse” or the “Company”) filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 19-10872. The Company, a cross-platform entertainment media brand for multicultural youth, is represented by James E. O'Neill of Pachulski, Stang, Ziehl & Jones…

April 22, 2019 – The Court hearing the Sears Holdings Corporation case issued an order approving the appointment of Paul E. Harner as independent fee examiner [Docket No. 3307]. Fees to date in the Sears cases have now well eclipsed the $50.0mn mark (February 2019 M.O.R. notes $52.9mn, including the U.S. Trustee), with Lazard Freres…

The winners of our the Bankruptcy Data Industry Best rankings for 2018 received their awards last week at the American Bankruptcy Institute's annual meeting in DC.  In a ceremony during the Friday Luncheon, New Generation Research CEO James Hammond revealed the winners in the for categories tracked:  Investment Bank, Law Firm, Financial Advisory, and Claims…