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Nasal spray maker Egalet Corp. filed for bankruptcy on Tuesday with a plan to turn over ownership of the Philadelphia-area business to bondholders and to another painkiller company, WSJ Pro Bankruptcy reported. The proposed deal, outlined in filings in U.S. Bankruptcy Court in Wilmington, Del., calls for Egalet’s unsecured bondholders to swap the $48.6 million that they are owed for 31.6 percent of the new equity in the reorganized company. They’re expected to recover 55 cents on the dollar of what they’re owed, according to the company’s plan disclosure statement. A group of existing senior bondholders, owed about $80 million, will also convert their debt into a 19.4% equity stake in the new company, a court filing says. The senior bondholders will also be issued $50 million in new notes. They are expected to recover 91 cents on the dollar, according to a court filing.

West Hempstead-based retailer National Wholesale Liquidators Inc., which recently disclosed plans to lay off 392 workers in New York State, has filed for chapter 11 bankruptcy and "is winding down its operations," Newsday reported. The Wednesday night bankruptcy filing by NSC Wholesale Holdings LLC estimates it has assets of $10 million to $50 million and liabilities in the same range. A news release Wednesday said the company has engaged two companies to help it sell the inventory and fixtures at its stores. The filing in U.S. Bankruptcy Court in Wilmington, Delaware, put the number of creditors at 200 to 999. The largest listed creditor, Arett Sales Corp. of Pennsauken, New Jersey, had an unsecured claim of $3.4 million, according to the filing.

Westmoreland Coal Co. filed for bankruptcy protection yesterday with an agreement to sell the mining business to a group of lenders, subject to better bids, in a transaction intended to reduce its $1.4 billion in debt, WSJ Pro Bankruptcy reported. The Englewood, Colo.-based company and a handful of its affiliates, including Westmoreland Resource Partners LP, filed chapter 11 petitions in the U.S. Bankruptcy Court in Houston. The filing comes after Westmoreland warned in April that it could file for bankruptcy as it negotiated with lenders on ways to address its debt.

American Tire Distributors Inc., buffeted by the defection of two big manufacturers, filed for chapter 11 protection in Delaware after reaching a deal with most of its bondholders to cut about $1.1 billion of debt, Bloomberg News reported. Bondholders will get equity in a new, reorganized version of the company through a plan that is still subject to court approval, according to the filing. The company said it has a deal for $250 million in new financing from a group of noteholders, including $200 million of incremental liquidity. The company said that it will also retain access to its current $980 million revolving credit facility. The company has yet to reach a deal with a group of senior lenders, however, and it said those talks continue.

Ruby’s Diners Inc. intends to file for bankruptcy protection next week, just days after it put some of some of its Southern California restaurants into chapter 11 to fend off a bid by one of its lenders to foreclose on its assets, WSJ Pro Bankruptcy reported. Bankruptcy lawyer William Lobel told a judge on Friday that Ruby’s Diner Inc. would file for bankruptcy on Tuesday. Lobel, a lawyer at Pachulski Stang Ziehl & Jones, was speaking at the initial hearing of Ruby’s SoCal Diners LLC. He said his team had “been burning the midnight oil” to place the Ruby’s Diner subsidiary and five of its company-owned restaurants into chapter 11 in U.S. Bankruptcy Court in Santa Ana, Calif. Douglas S. Cavanaugh, Ruby’s founder and chief executive, said in a declaration with the court that the chapter 11 filing was prompted by a bid by lender Opus Bank for the appointment of a receiver. The bank, which had loaned Ruby’s $5.9 million, claimed Ruby’s was in breach of its lending agreements. The bank is seeking a receiver so it can foreclose on the restaurants.

Real Mex Restaurants agreed to sell its assets to Z Capital Group and to facilitate the sale it voluntarily filed for chapter 11 protection, said the U.S. restaurant chain’s holding company RM Holdco LLC, Reuters reported. Real Mex, which operates Chevys Fresh Mex, El Torito, and other full-service Mexican restaurant brands, will remain open and operate as usual during the chapter 11 process, the company said. RM Holdco lists assets in the range of $50 million to $100 million and liabilities in the range of $100 million to $500 million, according to a filing in the U.S. Bankruptcy Court for the District of Delaware. Z Capital agreed to buy all of Real Mex’s assets and assume certain liabilities, and along with co-owner Tennenbaum Capital Partners has agreed to provide $5.5 million in debtor-in-possession financing, the company said. Sidley Austin LLP is serving as legal adviser, Alvarez & Marsal is its financial adviser, and Piper Jaffray & Co. is the M&A adviser, Real Mex said.

Brookstone Inc. filed for chapter 11 protection listing assets of $50 million to $100 million and liabilities of $100 million to $500 million, Bloomberg News reported. This will be Brookstone’s second trip to bankruptcy court since 2014, when the Merrimack, N.H.-based company filed a chapter 11 petition with a deal to sell its assets to Spencer Spirit Holdings Inc. for about $146.3 million. A group of Chinese buyers backed by retailing conglomerate Sanpower Group and Hong Kong-based private-equity firm Sailing Capital subsequently outbid Spencer with a deal valued at about $174 million. The 53-year-old company began with an ad placed in Popular Mechanics, according to its website, and was named after the farm where the founders lived. In 1973, it expanded from its catalog offerings (with items like self-watering plant pots) to open its first store. The company says it helped introduce brands such as Fitbit and iRobot to American consumers.

The owner of New York’s Flatiron Hotel filed for bankruptcy yesterday with a plan to sell a 50 percent stake in the boutique hotel to an affiliate of Uzi Ben Abraham’s real-estate investment company Premier Equities, WSJ Pro Bankruptcy reported. The 62-room hotel’s owner, a company called 1141 Realty Owner LLC, filed for chapter 11 protection in U.S. Bankruptcy Court in New York. The hotel is owned — through a series of interlocking companies — by Jagdish Vaswani. The hotel owner filed for bankruptcy after Wilmington Trust, as the trustee for the lenders, said that it had defaulted on a $22.5 million loan. Wilmington Trust had sued Flatiron last year in federal court, claiming the hotel had defaulted on its loan by selling alcohol without a license and misappropriating funds.

Heritage Home Group LLC, which was cobbled together out of a 2013 bankruptcy of the Thomasville, Broyhill and Lane furniture brands, is back in chapter 11 and looking for buyers to help it pay down $280 million worth of debt, WSJ Pro Bankruptcy reported. Heritage sold its Lane-branded lines of business late last year, but didn’t reveal the price on the deal. Plans for the chapter 11 proceeding that was launched on Sunday include at least one auction and the sale of the rest of the brands. The furniture company blamed its financial problems on changing consumer patterns and industry conditions, sharper competition and a loss of faith by retailers in its ability to deliver product. About $250 million of the company’s debts consists of loans from financial institutions, including owner KPS Capital Partners, LP. Heritage has a $17.45 million offer for its luxury line, consisting of the Hickory Chair, Pearson, Maitland-Smith, and La Barge brands, according to papers filed in the U.S. Bankruptcy Court in Wilmington, Del. The offer comes from Hickory Chair, LLC, a newly formed entity of RHF Investments Inc., which owns the Century, Hancock & Moore, and Highland House.