Former CST Industries Holdings Chapter 11 bankruptcy closed by court

By Caroline Salls

Pittsburgh, Sept. 5 – The Chapter 11 case of Tank Holdings Wind-Down Corp., formerly CST Industries Holdings Inc., was closed Thursday by the U.S. Bankruptcy Court for the District of Delaware.

Tank asked the court to dismiss its Chapter 11 bankruptcy cases in April 2018, saying that, as of the Dec. 22, 2017 closing of the sale of its assets, all of the debtors’ employees, including management, became employees of so-called “New CST,” and two of three members of the debtors’ board of directors resigned.

Following the closing, the remaining board member assumed responsibility for the wind-down of the debtors’ estates.

“Unfortunately, there is simply not enough cash left in these estates to satisfy all administrative claims and professional fee claims entitled to priority under section 507(a)(2) of the Bankruptcy Code, let alone claims lower in priority under section 507 of the Bankruptcy Code or general unsecured claims,” the motion said.

“The debtors’ administrative insolvency renders them practically and economically impossible to confirm a plan of reorganization.”

CST, a Kansas City, Mo.-based industrial storage solutions company, filed for bankruptcy on June 9, 2017. The Chapter 11 case number is 17-11292.

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