22 Feb Chapter 15 Recognition for Insolvencies North and South of the Border
An update on recent recognition requests from North and South America:
– Railpower Technologies Corp. – The Quebec-based manufacturer of high performance, clean locomotives and power plants for the transportation and related industries obtained provisional relief for its U.S. subsidiary, Railpower Hybrid Technologies Corp., in the Western District of Pennsylvania on February 4. A continued hearing on the requested relief, pending recognition of Railpower’s Canadian proceeding, is scheduled for March 5. A copy of the provisional Order and the memorandum of law in support is available here.
– CPI Plastics – CPI Plastics Group Ltd., which previously obtained recognition in the Bankruptcy Court for the District of Wisconsin in order to protect its primary US asset – a films plant in Pleasant Prairie, Wis. – is now up for sale. The Mississauga, Ontario-based profile and film extruder had been placed into receivership after its primary secured creditor, Bank of Montreal, petitioned to take over the company. It continues to operate pending a sale. According to news reports, the company’s C$3.4 million (US$2.7 million) fourth quarter losses triggered loan covenant violations with the bank. A prior restructuring effort was unsuccessful. The request for relief and the Bankruptcy Court’s subsequent recognition Order and related relief is available here.
– ITSA – Brazilian telecom ITSA obtained recognition from Judge Alan Gropper in New York’s Southern District in furtherance of its proposed plan of reorganization. The company – which petitioned a Brazilian court for ratification of its extrajudicial reorganization plan last April – viewed the ancillary filing in New York as necessary in order to enforce the Brazlilian plan’s treatment of the company’s $35 million in 12% senior secured notes, which are held by U.S. creditors and whose indenture was issued under and governed by New York state law. The company has no other assets or business operations in the United States. Bankruptcy Judge Allan Gropper’s Order granting recognition are available here.
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