CTI Foods, a custom foodservice manufacturer supplying the top U.S. restaurant chains and branded food companies, announced yesterday that the U.S. Bankruptcy Court for the District of Delaware has confirmed the company’s reorganization plan, according to a press release. The company expects to complete its restructuring and successfully emerge from chapter 11 in the coming weeks. Upon emergence, the company will reduce its debt by more than $400 million, providing significant financial flexibility to support continued investments on behalf of its customers. “We are pleased to have reached this important milestone in our expedited, pre-packaged restructuring process,” said Mike Buccheri, President and Chief Executive Officer of CTI.
A panel of three judges approved a $15 million settlement between McKinsey & Co. and the Justice Department, resolving the government’s allegations that the consulting firm didn’t disclose conflicts of interest in bankruptcy cases it helped steer, WSJ Pro Bankruptcy reported. The settlement, struck in February with the help of a mediator, is one of the largest sums ever paid by a bankruptcy professional for alleged disclosure violations and covers three large chapter 11 cases: coal miner Alpha Natural Resources, solar-energy company SunEdison Inc. and Westmoreland Coal Co. The settlement provides $5 million for unsecured creditors in each case, though exactly how that money will be distributed has yet to be resolved. The deal follows several years of court filings from the Justice Department criticizing McKinsey’s conflicts disclosure practices. Lawyers from the U.S. Trustee Program, an arm of the Justice Department charged with protecting the integrity of the nation’s bankruptcy system, have said that McKinsey’s disclosures didn’t comply with bankruptcy law, because they failed to identity clients with connections to the cases that could pose conflicts of interest. The program’s lawyers also have said that McKinsey “wasn’t forthcoming” about links between its restructuring and investment arms.
Angel Medical Systems has raised $10 million in a new equity round of financing after clearing its chapter 11 bankruptcy plans, MassDevice.com reported. The Eatontown, N.J.-based company developed the FDA-cleared AngelMed implantable cardiac monitor system intended for patients who had prior acute coronary syndrome events, including myocardial infarctions or unstable angina, and who remained at high risk for recurrent ACS events. Angel Medical Systems won approval for its chapter 11 bankruptcy emergence plans in January. The company said last Friday that it has successfully exited from chapter 11 as a private company, adding that the plan was supported by its creditors and that it has converted all existing note holder debt to equity.
