Reichhold Inc., Affilliates, File for Bankruptcy Relief in Delaware
NEW YORK — Reichhold Holdings US Inc. and three of its affiliates are seeking bankruptcy relief in Delaware federal bankruptcy court, according to a notice filed in the New York asbestos litigation.
According to an Oct. 3 notice filed in the New York County Supreme Court, defendant Reichhold Holdings and affiliates Reichhold Inc., Canadyne Corp. and Canadyne-Georgia Corp. filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.
The debtors’ Chapter 11 cases are being jointly administered, according to the notice.
In accordance with the automatic stay imposed by Section 362 of the Bankruptcy Code, no cause of action arising prior to, or relating to, the period to the Sept. 29 petition date may be brought or prosecuted against the debtors, the notice says. In addition, no related judgment may be entered or enforced against the debtors outside of the Bankruptcy Court without the court first lifting or modifying the automatic stay for that specific purpose, the notice states.
According to a Sept. 30 press release issued by Reichhold Inc., the company “has arranged $130 million in financing from its bondholders to fund continuing operations, of which $100 million (subject to court approval) will be available to Reichhold Inc. in the form of debtor-in-possession financing.
“The financing will also be used to repay the Company’s and its affiliates’ existing secured financing in North America and Europe. The bondholders will also serve as the stalking horse bidder for the U.S. business in a 363 sale process to be conducted over the next few months,” the press release says. “Reichhold affiliates located outside the U.S. are not included in the filings. These entities will continue to function outside of the Chapter 11 process and they have the necessary liquidity to continue their operations in the ordinary course of business.”
Reichhold Inc., based in Durham, N.C., is one of the world’s largest manufacturers of unsaturated polyester resins and a leading supplier of coating resins to the manufacturing, transportation and construction industries.
Counsel for Reichhold is Mark K. Hsu of Hawkins Parnell & Young in New York.
In re New York City Asbestos Litigation, No. 40000/88 (N.Y. Sup. Ct., N.Y. Cty.)
Document Is Available Call (800) 496-4319 or Search www.harrismartin.com Notice of Suggestion of Bankruptcy
Ref# ASB-1411-03
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