Introduction
On May 13, 2019, (the “Petition Date”), JRV Group USA L.P. (the “Debtor”) filed voluntary petitions for relief under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.
The Debtor is represented by Pachulski Stang Ziehl & Jones LLP. The case has been assigned to the Honorable Judge Christopher S. Sontchi. A hearing on the Debtor’s first day motions was held on May 15, 2019. A meeting to form the Official Committee of Unsecured Creditors is scheduled for May 21, 2019.
Background
Headquartered in Ontario, California, the Debtor’s business focuses on adding features to vehicles, such as a tent for camping, which makes the vehicles more desirable for recreational vehicle dealers to sell to end users/consumers (the “Modified Vehicles”). The Debtor employs approximately twenty-six employees as of the Petition Date.
Through various court filings, the Debtor indicates that it has encountered financial difficulty due to Debtor’s safety risks associated with the Debtor’s Modified Vehicles and the non-compliance with certain United States regulations regarding same, which exceed the applicable gross vehicle weight ratings.
Financial Condition
As of the Petition Date, the Debtor estimates that it owes approximately $3.5 million in secured debt. Erwin Hymer Group Holding USA L.P. is owed approximately $3 million and Corner Flag LLC (“Corner Flag”) is owed approximately $490,000 under secured promissory notes. The Debtor estimates that it has approximately $1.1 million of unpaid unsecured vendor and other claims against it.
DIP Financing Motion
The Debtor is seeking authority to enter into a Debtor-in-Possession facility with Corner Flag. The Debtor is requesting a senior secured super-priority debtor-in-possession facility in the amount of $3.3 million.
Wages and Benefits Motion
The Debtors seek interim authority to pay certain employee obligations and maintain and continue employee benefits programs and schedule a final hearing on the motion in an aggregate interim amount not to exceed $100,000.00. As of the Petition Date, the Debtor employed approximately twenty-six individuals. The Debtor is current on its employee wages, salaries, gratuities, overtime pay, and other compensation. The Debtor asserts that no employee will be paid more than the $13,650, the prepetition wages and benefits limit.