iPic Gold-Class Entertainment’s Chapter 11 cases dismissed by court

By Sarah Lizee

Olympia, Wash., Oct. 1 – iPic Gold-Class Entertainment, LLC’s Chapter 11 bankruptcy cases were dismissed on Wednesday by the U.S. Bankruptcy Court for the District of Delaware.

“Following the court-approved sale of substantially all of the debtors’ assets effectuated through a credit bid by their secured pre-petition lenders, the debtors are running out of cash and time and cannot remain in Chapter 11 much longer,” the debtors said in a motion filed with the court on April 27.

“Thus, the debtors submit that dismissal of these Chapter 11 cases and the distribution of their remaining cash on hand to creditors is the most practical and cost-effective means to bring closure to the administration of the estates.”

iPic said its asset sale closed on Nov. 15, 2019 and the buyer agreed to pay some pre-bankruptcy priority and administrative claims as part of a global settlement. The company said it is prepared to implement the court-approved settlement as part of dismissal of the cases.

According to the motion, the iPic debtors explored the possibility of proposing a plan in connection with a restructuring support agreement, “but the cash remaining in the estates is not sufficient to pay all priority claims in full and adequately fund a post-confirmation trust and the administrative claims would continue to dissipate the recovery to priority claims unless the case is wound down promptly.”

iPic is a Boca Raton, Fla.-based luxury restaurant and theater company. The company filed bankruptcy on Aug. 5, 2019 under Chapter 11 case number 19-11739.

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