Constellation Enterprises asks court to convert cases to Chapter 7

By Caroline Salls

Pittsburgh, June 26 – Constellation Enterprises, LLC asked the U.S. Bankruptcy Court for the District of Delaware to convert its Chapter 11 case to Chapter 7, according to a motion filed Friday.

Constellation said the remaining cash in its wind-down fund and any other cash that it may be able to utilize is not sufficient to pay accrued administrative expenses and the administrative expenses that may be incurred if the company remains in Chapter 11 to complete its wind down and conclude the cases.

While there were several contributing factors that caused the depletion of the wind-down fund before the Constellation debtors completed the wind down of their estates, the company said the primary contributing factors were that a settlement motion, which called for a case-ending resolution mechanism, was not approved, and the settlement hearing was ultimately held several months after the originally expected hearing date.

“As a result, the debtors are, or shortly will be, administratively insolvent,” the motion said.

A hearing is scheduled for July 14.

Constellation Enterprises is based in Youngstown, Ohio. Its divisions manufacture tank head and tank head accessories, highly engineered, specialty alloy, open die forgings and steel alloy materials and deep-drawn and fabricated aluminum cases, molded plastic cases, enclosures and assemblies. The company filed for bankruptcy on May 16, 2016 under Chapter 11 case number 16-11213.

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