Former Delivery Agent enters settlement with Hillair Capital, Connekt

By Caroline Salls

Pittsburgh, May 31 – DA Liquidating Corp., formerly Delivery Agent, Inc., requested court approval of a settlement reached with junior secured creditors Hillair Capital Management LLC and Hillair Capital Investments LP and asset purchaser and Hillair affiliate Connekt Inc., according to a motion filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, DA Liquidating’s Chapter 11 case will be converted to Chapter 7 following the hearing on approval of the settlement.

Under the proposed settlement, Connekt and/or Hillair will assume liabilities of DA Liquidating, including professional fees and expenses, amounts owed to As Seen on TV and Federal Express incurred after the sale closing, sales and franchise taxes incurred after the closing and all liabilities arising from the buyer’s use of any of the DA Liquidating debtors’ shipping accounts post-closing.

Connekt also will release all claims to any holdback amounts previously paid to DA Liquidating by American Express and the current holdback held by American Express in the company’s name, up to $150,000, regardless of whether those amounts were retained by American Express in connection with post-closing receivables.

Connekt confirmed under the settlement that, for each claimant that filed an administrative claim related to consigned inventory, Connekt either entered into an agreement permitting Connekt or its designee to sell the consigned inventory and assumed all related liabilities or discontinued sales of the consigned inventory and has or will arrange for the release of the consigned inventory to the respective claimant upon request.

The parties will also grant mutual releases under the settlement.

A hearing is scheduled for June 6.

Delivery Agent is a San Francisco-based entertainment content solutions company. The company filed bankruptcy on Oct. 13, 2016 under Chapter 11 case number 16-12051.

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