DirectBuy Holdings, Inc., and seven of its U.S. affiliates have filed chapter 11 petitions before the United States Bankruptcy Court for the District of Delaware (lead case no. 16-12435). The cases have been assigned to the Honorable Christopher S. Sontchi. The debtors operate a members-only buying club. The debtors have entered into an asset purchase agreement with a new entity formed at the direction of a majority of their pre-petition secured lenders and filed a motion seeking authority to sell substantially all of their business assets on a going concern basis pursuant to a competitive sale process. The debtors have also filed a motion seeking relief to protect the interests of their members. The petitions (including consolidated list of top 40 creditors), first day declaration and docket are available through Prime Clerk.
