Noble House seeks dismissal or conversion of Chapter 11 case

By Sarah Lizee

Olympia, Wash., March 28 – Noble House Home Furnishings LLC asked the U.S. Bankruptcy Court for the Southern District of Texas to dismiss its Chapter 11 bankruptcy case or convert it to Chapter 7, according to a motion filed Thursday.

On Oct. 27, the company received the court’s approval to sell its assets to GigaCloud. The sale closed on Oct. 31.

The debtors no longer maintain active business operations and are winding down their affairs while assisting the official committee of unsecured creditors in its investigation of causes of action.

The company said it has explored options to bring the Chapter 11 cases to a conclusion and believes that a dismissal is the most expeditious and cost-effective mechanism to wind down the debtors’ affairs.

Noble House said it does not have enough funds available to pay estimated prepetition claims or to consummate a Chapter 11 plan.

Following the sale and the payment to the debtor-in-possession lenders on account of the DIP loans, the DIP lenders are still owed about $5 million.

The DIP lenders provided a carveout to fund the administration of the Chapter 11 cases, but that is insufficient to keep the cases open, the company said.

The committee has not identified causes of action that are worthwhile for a Chapter 7 trustee to pursue to generate additional value for the debtors’ estates, and the debtors are not aware of any remaining material assets, the company added.

Noble House said if the court does not approve dismissal, then conversion to Chapter 7 is the only feasible resolution.

The Chatsworth, Calif.-based home furniture company filed bankruptcy on Sept. 11, 2023 under Chapter 11 case number 23-90773.

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