Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11

Event Rentals Chapter 11 Petition Filed

Privately-held Event Rentals (aka Classic Party Rentals) and 12 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 14-10282. The Company, which the nation’s largest provider of event rental products and related services, is represented by Jeffrey M. Schlerf of Fox Rothschild. According to documents filed with the Court, “The Debtors’ financial performance was particularly vulnerable in the face of the global economic downturn for three main reasons. First, individual and corporate clients alike scaled back on discretionary spending, which, for many, included spending on the Debtors’ event rental and tenting services. Second, given the government bailouts of banks, automotive companies, and insurance companies that occurred during the downturn and the resultant ‘AIG Effect,’ as well as the high unemployment rate, even those clients successfully weathering the economic storm were cautious about flaunting their good fortunes, resulting in further reduction in demand for the Debtors’ services. Third, the diminished demand resulting from clients’ lack of resources or desire to hold events led to overcapacity in the rental market and, consequently, lower pricing, both directly and indirectly through increased discounting, and reduced profitability for the Debtors.” Event Rentals listed more than $100 million in assets on its Chapter 11 petition.

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