OM Industries Chapter 11 case converted to Chapter 7 to allow operations wind down

By Caroline Salls

Pittsburgh, March 30 - OM Industries, Inc.'s Chapter 11 case was converted to Chapter 7 Friday by the U.S. Bankruptcy Court for the District of Massachusetts.

As previously reported, the conversion will allow the company to wind down its operations following the sale of substantially all company assets.

According to the motion, the court approved the asset sale on Feb. 26, and now Malden Mills expects to wind down its cases under an orderly Chapter 7 wind down.

Under the company's wind-down order, all administrative claims incurred through the conversion and other claims detailed in a wind-down budget that are incurred through the closing date will be paid.

As a result of the case conversion, motions to terminate the company's exclusivity and to appoint a responsible officer were rendered moot.

OM Industries, formerly Malden Mills, is a Lawrence, Mass.-based textile company that filed for bankruptcy on Jan. 10 in the U.S. Bankruptcy Court for the District of Delaware. The case was transferred to the Massachusetts court on Jan. 16. Its Chapter 11 case number is 07-40124.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.