Help Center

Bankruptcy Headlines

November Commercial Bankruptcy Filings Up 26 Percent over Previous Year, Total Filings Down 10 Percent

Total U.S. commercial bankruptcy filings increased 26 percent in November 2016 over November of last year, according to data provided by Epiq Systems, Inc. Commercial filings totaled 2,908 in November 2016, up from the November 2015 total of 2,311. November is the thirteenth consecutive month with a year-over-year increase in commercial filings. However, total commercial chapter 11 filings decreased in November 2016, as the 385 filings were 2 percent less than the 392 commercial chapter 11 filings registered in November 2015. The total bankruptcy filings of 59,300 in November 2016 represented a 10 percent decrease from the November 2015 total of 65,562. Consumer filings also decreased as the 56,392 filings in November 2016 were down 11 percent from the November 2015 consumer filing total of 63,251.

Oral Argument in Jevic Case Scheduled for Tomorrow at Supreme Court

The Supreme Court is scheduled to hear oral argument in Czyzewski v. Jevic Holding Corp. (15-649) tomorrow at 10 a.m. ET. ABI’s Bill Rochelle will be covering the oral argument in Jevic tomorrow and will provide a video recap on ABI’s social media networks (Twitter, Facebook and Linked In) and a summary in the Rochelle Daily Wire. For more on the Jevic case, please click here.

Werthan Packaging Files for Bankruptcy

Paper packaging supplier Werthan Packaging Inc. filed for bankruptcy protection with a plan to sell itself to a rival company, the Wall Street Journal reported today. Cash-strapped Werthan, based in White House, Tenn., filed for chapter 11 and plans to sell itself to competitor Gateway Packaging Co. LLC for $7.2 million, according to papers filed in U.S. Bankruptcy Court in Nashville, Tenn. The company is asking a bankruptcy judge to sign off on a speedy sale. Court papers say that the sale procedures must be approved within 10 days of the bankruptcy filing, and the sale itself needs to be approved within a month.

Caesars Entertainment, CEOC Receive Creditor Support for CEOC Reorganization Plan

Caesars Entertainment Corp. and Caesars Entertainment Operating Company, Inc. (CEOC) and its chapter 11 debtor subsidiaries announced yesterday that substantially all voting creditor classes have voted to accept CEOC's proposed plan of reorganization, according to a press release. The plan was accepted by more than 90 percent of voting creditors. Each of the creditor classes for the debtors' first lien noteholders, first lien bank lenders, second lien noteholders, subsidiary-guaranteed noteholders, and unsecured noteholders voted to accept the plan in numbers well in excess of what is necessary to confirm the plan. The overwhelming support for the plan is an important milestone toward CEOC confirming its plan and emerging from bankruptcy protection in 2017.

Analysis: Role of Abengoa in Spotlight at U.S. Bankruptcy Showdown

A leading U.S. subsidiary of Abengoa SA heads to court today to seek approval for a bankruptcy exit plan that opponents argue violates the law by prioritizing the Spanish parent and its international backers ahead of U.S. creditors, Reuters reported yesterday. Abeinsa Holding Inc. is one of dozens of global Abengoa subsidiaries that filed for U.S. chapter 11 and 15 bankruptcy this year while their Seville-based renewable energy parent thrashed out a debt restructuring deal in Spain to avoid its own bankruptcy. The U.S. subsidiaries, which range from small ethanol plants to construction and engineering firms like Abeinsa, were guarantors of $10 billion of debt held by the parent, creating one of the most complex cross-border restructurings of the past decade. A Spanish court approved Abengoa's restructuring agreement last month, giving a group of lenders including Spain's Santander equity in exchange for debt. Now the company needs a U.S. court to approve the plan and repayment terms for creditors of the U.S. subsidiaries. To win U.S. creditor support, Abengoa has proposed investing over $30 million cash in exchange for retaining full control of the U.S. units, allowing the Spanish company to maintain its position in one of its most important markets. Read more.

Cover all aspects of the UNCITRAL Model Law on Cross-Border Insolvency as well as chapter 15 of the Bankruptcy Code with ABI’s Chapter 15 for Foreign Debtors

American Apparel Warns 3,500 Southern California Workers of Possible Layoffs

American Apparel has told nearly 3,500 employees in Southern California that they may lose their jobs in January depending on the outcome of a likely sale to Canadian clothing maker Gildan Activewear, the Los Angeles Times reported today. The maker of colorful basics, which in November filed for bankruptcy for the second time, has notified workers at three American Apparel production facilities that they could be laid off Jan. 6, according to the California Employment Development Department. If all of these workers lost their jobs next year, it would be a huge blow to Southern California apparel manufacturing, which has steadily declined over the years, analysts said. This year, American Apparel laid off at least 500 workers as it cut production.