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

Kid Brands Chapter 11 Petition Filed

Kid Brands and six affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of New Jersey, lead case number 14-22582. The Company, which designs, imports, markets and distributes branded infant and juvenile consumer products, is represented by Kenneth A. Rosen and Samuel Jason Teele of Lowenstein Sandler. Concurrent with this Chapter 11 filing, Kid Brands also announced that it plans to pursue a sale of substantially all of the assets of the Company or one or more of its subsidiaries. Kid Brands intends to operate its current business in the ordinary course during the Chapter 11 process and has secured commitments for $49 million in debtor-in-possession financing from Salus Capital Partners and Sterling National Bank, its existing lenders. In addition to Kid Brands’ ongoing cash flow, this D.I.P. financing will enable the Company to fund its financial obligations. According to documents filed with the Court, “The Company’s long-standing and legacy contingent liabilities are the primary drivers of the Company’s current situation. These liabilities resulted in excess cost, diversion of the attention of the Company’s management, and stymied the Company’s ability to attract more capital and funding.”

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