Bankruptcy Appeals Panel Affirms Confirmation of Chapter 11 Plan Despite Objection of Largest Unsecured Creditor

BVLaw
Court Case Digests
June 21, 2023
2679 Converted Paper and Paperboard Products, NEC
322299 All Other Converted Paper Product Manufacturing
bankruptcy
bankruptcy, federal bankruptcy court, equipment costs, chapter 11, asset sale, creditor

Albaad USA, Inc. v. GPMI, Co. (In re GPMI, Co.)
Bankr. LEXIS 1606; 2023 WL 4105896
US
Federal Court
9th Circuit
United States Bankruptcy Appellate Panel
Morris Aaron
Corbit, Lafferty, Brand

Summary

The debtor was a manufacturer of wet wipe cleaning products. It contracted with a new customer to manufacture wipes for the customer in the U.S. and to sell such wipes to the new customer. The customer failed to obtain EPA and state-level product registrations and refused to purchase manufactured wipes or to honor its commitments regarding loans to the debtor for new equipment leases and other costs to expand the debtor’s facilities to meet the demands of the contracts. The debtor ultimately filed for bankruptcy and delivered a Chapter 11 plan that included selling its assets. The Bankruptcy Court approved the plan. The creditor appealed the approval of the plan, but the appeals panel affirmed.

See Also

Albaad USA, Inc. v. GPMI, Co. (In re GPMI, Co.)

The debtor was a manufacturer of wet wipe cleaning products. It contracted with a new customer to manufacture wipes for the customer in the U.S. and to sell such wipes to the new customer. The customer failed to obtain EPA and state-level product registrations and refused to purchase manufactured wipes or to honor its commitments regarding loans to the debtor for new equipment leases and other costs to expand the debtor’s facilities to meet the demands of the contracts. The debtor ultimately filed for bankruptcy and delivered a Chapter 11 plan that included selling its assets. The Bankruptcy Court approved the plan. The creditor appealed the approval of the plan, but the appeals panel affirmed.