Forma Brands gets exclusivity extension to complete review of claims

By Sarah Lizee

Olympia, Wash., May 26 – Forma Brands, LLC secured an extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the court extended the exclusive plan filing period through Aug. 10 from May 12 and the exclusive solicitation period through Oct. 9 from July 11.

The company said in its motion that now that it has closed its asset sales and the bar dates have passed, it has turned its attention to reviewing and resolving administrative and priority claims filed against its estates.

To date, more than 130 claims alleging entitlement to administrative expense and other priority have been filed against the estates.

Additionally, the debtors’ schedules and statements identified 83 claims that may be entitled to administrative expense and other priority.

“Although the debtors’ professionals have been actively reviewing these claims as they are filed, reviewing the debtors’ books and records and negotiating with claimants regarding resolution of each of these claims is a time-consuming process,” the company said in its motion.

“Only after this process is complete, will the debtors have a full picture of the estates’ financial condition and the viability of filing, soliciting and consummating a successful Chapter 11 plan of reorganization in these Chapter 11 cases.”

To give the debtors time to accomplish the claims review process and continue to administer the cases, the debtors sought an extension of the exclusive periods.

The Los Angeles-based beauty brand developer filed bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on Jan. 12 under Chapter 11 case number 23-10025.

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