On March 31, 2022, Ruby Pipeline, L.L.C., a Houston-based operator of a 680-mile natural gas system from Opal, Wyoming, to interconnections near Malin, Oregon, filed a petition for Chapter 11 relief in the Bankruptcy Court for the District of Delaware (Case No. 22-10278). The company reports $500 million to $1 billion in both assets and liabilities.
On March 30, 2022, MD Helicopters, Inc. of Mesa, AZ filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 22-10263). The company is a helicopter supplier for military, law enforcement, utility, emergency medical services and VIP customers, with more than 2,500 aircraft in service globally.
A director has been found liable in the High Court for fraudulent trading as a result of failing to carry out proper due diligence in a series of transactions which were found to be part of a VAT fraud scheme.
The claim was brought against the director by the Liquidator of JD Group Limited (the “Company”).
Background
Company insolvencies have recently hit a record high and are on an upward trend in the aftermath of the COVID-19 pandemic. This means that we are likely to see an increase in claims against directors, especially in light of new legislation that expands the government’s powers of investigation.
Record high insolvencies
On March 23, 2022, Massachusetts-based Footprint Power Salem Harbor Development LP and certain affiliates, which operate a 674 MW natural gas-fired combined-cycle electric power plant in Salem, Massachusetts, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 22-10239).
On March 17, 2022, New York-based Buyk Corp., a mobile app grocery delivery service operating in New York and Chicago, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of New York (Case No. 22-10328).
On February 3, 2022, Tracer Roofing of Humble, TX filed a petitionfor relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of Texas (Case No. 22-30314). The petition indicates that the debtor intends to proceed under Subchapter V of Chapter 11. Tracer Roofing reports $500,000 to $1 million in assets and $10 million to $50 million in liabilities.
On Friday, January 14, 2022, BH Cosmetics Holdings LLC, a beauty brand based in North Hollywood, California filed a petitionfor chapter 11 relief in the Bankruptcy Court for the District of Delaware (Lead Case No. 22-10050. BH Cosmetics specializes in clean, vegan, and cruelty-free cosmetics and beauty products sold via ecommerce channels and wholesale.
On January 11, 2021, Seadrill New Finance Limited (“NSNCo”), issuer of Seadrill secured notes due 2025, and several affiliates filed a petitionfor relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of Texas (Case No. 22-90001).