Chromcraft Revington, Inc. and Sport-Haley Holdings, Inc. file Chapter 11

Morris James LLP

On March 5, 2015, Chromcraft Revington, Inc.(“Chromcraft”) and Sport-Haley Holdings, Inc. (“Sport-Haley”) filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code.  Copies of the petitions are linked here: Chromcraft petition and Sport-Haley petition. Debtors offer the Declaration of Samuel A. Kidston in support of their petitions.  According to Mr. Kidston’s Declaration, Debtors seek to wind down and liquidate Chromcraft.

Chromcraft has two private sales of its property lined up, while it continues to look for buyers for its distribution and warehouse facilities.  Through its pre-bankruptcy filing efforts, Chromcraft received two offers for its assets and entered into two separate asset purchase agreements.  Chromcraft seeks to sell substantially all of its intellectual property and potentially other assets to Arts And Crafts Industries Ltd. Through an asset purchase agreement with Myron Bowling Auctioneers, Inc., Chromcraft seeks to sell substantially all of its furniture, fixtures and equipment.  Chromcraft intends to sell its assets through private sales but will entertain higher offers received prior to the sale hearing. Chromcraft continues to market its two distribution and warehouse facilities for sale.  Chromcraft owns a facility in Senatobia, Mississippi and another in Delphi, Indiana.

As of the bankruptcy filing, Chromcraft had outstanding secured debt totaling approximately $9 million and approximately $2 million in outstanding unsecured debt and other obligations.  Chromcraft’s secured obligations are to Merchant Factors Corp. (“Merchant”).  Mr. Kidston’s declaration indicates that Merchant has a lien on and a security interest in substantially all of Chromcraft’s assets, including Accounts, Books and Records, Inventory, Equipment, and Intangibles as provided in its loan agreements and a mortgages on certain real property.

The cases have been assigned to Bankruptcy Judge Kevin Gross for purposes of administration.  Debtors have sought to jointly administer the two bankruptcy cases under case no. 15-10482 (KG).

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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