Chapter 11

An official notice from the Judicial Conference of the United States was just published announcing that certain dollar amounts in the Bankruptcy Code will be increased ever

The Supreme Court’s decision last term in Baker Botts v. Asarco, in which the Court ruled that professionals that are paid from a debtor’s bankruptcy estate cannot be compensated for time spent defending their fee applications, continues to rankle bankruptcy practitioners.  Moreover, a recent decision in a Delaware bankruptcy case shows that the impact of Asarco will not be easily circumvented.

On Friday, December 11, 2015, Cubic Energy Inc. and affiliated debtors (“Debtors” or “Cubic”) filed a voluntary Chapter 11 with the United States Bankruptcy Court for the District of Delaware.  This is a prepack bankruptcy, with Cubic filing a proposed Chapter 11 plan of reorganization and disclosure statement on the same day it filed for bankruptcy.

In addition, Cubic filed the standard “first-day” motions, including a motion to approve use of cash collateral, motion to pay employee wages, motion to appoint claims agent, and a motion to schedule a confirmation hearing, etc.

On October 30, 2015, Fresh & Easy, LLC (“Debtor”) filed a petition for bankruptcy under Chapter 11 of the United States Bankruptcy Code.  Exide filed for bankruptcy in the United States Bankruptcy Court for the District of Delaware. At the time of its bankruptcy filing, Fresh & Easy had 97 stores in California, Arizona and Nevada.

Chief financial officer Peter McPhee signed court documents indicating the company has assets of $10 million to $50 million and debts of between $100 million and $500 million.