Bankruptcy Debrief for the Week of Oct. 22nd

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National Wholesale Liquidators May Be Liquidated in Chapter 11

National Wholesale Liquidators (NSC Wholesale Holdings) filed chapter 11 and has plans to liquidate the entire company, but also left the door open to selling the entire business as a going concern. The company operates 11 stores in four states (New Jersey, New York, Massachusetts and Pennsylvania) with almost 700 employees.

The company said that the filing didn’t result from poor performance at stores, but rather unanticipated factors such as construction-related damages and delays in opening new stores. Well-known liquidators Hilco Merchant Resources and Gordon Brothers Retail Partners are set to liquidate all the stores for the benefit of creditors if a purchaser is not identified.

As of the filing, the company had about $37 million of outstanding debt, comprising mostly  about $9.4 million to secured lender Capital One and unsecured debt of $27.2 million.

Read Chief Restructuring Officer Mark Samson’s declaration in support of the first day motions here

View the Chapter 11 Petition here

 

Sorenson Media Seeks Protections in Chapter 11 to Reject Sinclair Contract

Sorenson Media returns to bankruptcy court just over four years after it left the Delaware bankruptcy court. This time, the Salt Lake City-based media company ended up in Utah bankruptcy court. Sorenson said it had not commercialized as it had anticipated when entering an agreement with its now-largest creditor, Sinclair Broadcasting. Therefore, the company is using the chapter 11 process to reject the contract with Sinclair, which is listed as having a $22.5 million claim.

Sorenson has listed total liabilities at over $100 million with assets of only $10 million to $50 million. The bankruptcy case will be funded by a debtor-in-possession loan from JLS Holdings.

View the Chapter 11 Petition here

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