Ascendia Brands' creditors committee seeks Chapter 11 case dismissal

By Jim Witters

Wilmington, Del., June 5 - Ascendia Brands, Inc.'s official committee of unsecured creditors is seeking to have the Chapter 11 case dismissed, according to documents filed June 4 with the U.S. Bankruptcy Court for the District of Delaware.

The committee claims the company's sole director resigned on May 8.

Ascendia sold substantially all its assets in 2008. Its remaining assets consist primarily of accounts receivable and avoidance actions, which are collateral for the debtor-in-possession financing facility, the committee's motion states.

Under the terms of the final DIP order, the first $1.5 million of the net proceeds of avoidance claims are to be shared equally between the prepetition agent and the unsecured creditors committee, the motion states.

The final DIP order expired March 31.

Any remaining proceeds of more than $1.5 million are to be split, with 75% to the prepetition agent and 25% to the committee.

The committee says that all potentially valuable avoidance claims have been prosecuted and settled.

As a result of these settlements, about $771,862 is available for distribution, according to the committee.

The committee is seeking dismissal of the case and distribution of the funds within seven days of the granting of the motion.

A hearing on the dismissal motion is scheduled for noon ET on June 27.

Ascendia is a Hamilton, N.J.-based health and beauty care products company. Its Chapter 11 case number is 08-11787.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.