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Business Wire
4 days ago
- Business
- Business Wire
Design Group Americas Voluntarily Files for Chapter 11 Protection, Initiates Sale Process Aimed at Maximizing Value Through Going Concern Transactions
BERWICK, Pa.--(BUSINESS WIRE)--IG Design Group Americas, Inc. and its domestic subsidiaries (collectively, 'DGA' or the 'Company'), a design, manufacturing, sourcing, and distribution company of branded and private label consumer products, announced today that it has voluntarily filed for chapter 11 relief in the United States Bankruptcy Court for the Southern District of Texas (the 'Court') to facilitate a court-supervised marketing and sale process pursuant to section 363 of the Bankruptcy Code. The Company intends to pursue a value maximization strategy by engaging with buyers who are interested in purchasing certain of the Company's business segments as a going concern, while concurrently winding down its domestically manufactured woven ribbon products business and supporting assets. DGA includes over 50 product categories and brands, some of which were established over a century ago. Like many companies in the consumer products sector, DGA has been navigating a challenging operating landscape for several years, compounded by the loss of a major customer, who entered liquidation and significantly impacted DGA's revenue as well as new trade tariffs imposed in 2025 that increased operational costs, affected pricing strategies, and contributed to reduced customer orders. The Company's decision to pursue an in-court process was driven by liquidity constraints, substantial working capital requirements, and the seasonal nature of significant portions of its business. 'Following DGA's sale to an affiliate of Hilco Capital Group, we have worked diligently with our advisors to evaluate the optimal path forward for the business,' said Sue Buchta, Chief Executive Officer of DGA. 'We enter the court-supervised sale process in dialogue with multiple interested parties for certain of our business segments as a going concern and intend to leverage chapter 11 to maximize the value of our assets. We thank our employees, customers, and partners for their support and will work diligently to minimize any potential impact during the process.' Additional Information about the Court-Supervised Process DGA has secured an agreement for approximately $53 million in committed debtor-in-possession ('DIP') financing from an affiliate of Hilco to support its value maximizing strategy throughout its Chapter 11 cases, subject to Court approval. Additionally, to uphold its commitments to its stakeholders, DGA has filed several customary 'first day' motions. These motions, upon approval by the Court, will provide authorization for the continued payment of employee wages and benefits arising under programs that were in effect as of the petition date, the maintenance of certain customer programs, payments to certain critical vendors for prepetition amounts owed, payment to vendors for amounts owed on post-petition goods and services delivered to the Company, and other relief measures standard in these circumstances. DGA's non-U.S. affiliates are not part of the chapter 11 cases and will continue to operate while the Company considers the impact of asset sales and the optimal plan to maximize the value of the interests it holds in those subsidiaries. Additional information is available at Stakeholders with questions may call the Company's claims agent Kroll, toll-free at (877) 307-2977 (U.S. and Canada) or (646) 290-6127 (International), or email at dgateam@ Advisors Latham & Watkins LLP is serving as legal counsel, Huron Consulting Group LLC is serving as financial advisor and investment banker, and C Street Advisory Group is serving as strategic communications advisor to DGA. About DGA Design Group Americas (DGA) is a diverse group of companies operating across multiple regions, categories, seasons, and brands. The company employs over 1,400 people and works with customers in the US and around the world, with offices and operations in the United States, UK, Australia and Asia. DGA products are found in over 100,000 retail outlets internationally, with products reaching millions of consumers of all ages. Design Group Americas creates, designs, and manufactures products that help the world celebrate life's special occasions. They are proud to serve the best retailers around the globe with a complete end-to-end service from design to distribution. Design Group America's products are found within six core categories: Gift packaging: DGA is one of the world's largest producer of celebrations products, including gift wrap, gift bags, ribbons & bows Party: Party-ware, balloons and accessories Ribbon: Craft, décor, ribbon for branded or floral business Craft: Craft and creative play products that empower consumers of all ages to express themselves, learn new skills, as well as create individual looks, unique gifts and keepsake items Stationery: Wide range of stationery products for consumers of all ages, for use in education, commercial, and home settings including both standard and fashion ranges Homeware/Décor: Seasonal and everyday décor such as florals, holiday signs, tabletop décor and ornaments
Time of India
7 days ago
- Business
- Time of India
Govt eyes IBC route for STC, PEC closure
New Delhi: The government will have a relook at the closure of State Trading Corporation of India Limited (STC) and PEC Limited through the Bankruptcy Code, the first instance of pursuing closure of central public sector enterprises or CPSEs through this mechanism. Both these firms are categorised as a nonperforming asset or NPA with lenders. A senior government official confirmed that the closure of these two firms under the ministry of commerce and industry is now being examined through the Insolvency and Bankruptcy Code (IBC) mechanism. "Last month, after discussions at the level of the Prime Minister Office (PMO), it was decided to explore this route while also taking into consideration the existing guidelines for closure of sick and loss-making CPSEs," he said, adding that inter-ministerial discussions involving the finance, commerce and law ministries are now being pursued. A cabinet note on this matter is also being discussed. "We will examine the possible options and challenges involved because this would be the first such case," he added. A senior bank executive said closure through IBC route of state-owned firms will set a bad precedent, and may impact their lending strategies to government-owned firms. "That means there is no implied sovereign guarantee while extending credit to CPSEs, and that they should be treated at par with private sector firms. This will impact the ratings of these firms in the short term, and raise questions on government backing in these companies."
Business Standard
17-06-2025
- Business
- Business Standard
Rajeswari Sengupta Rajeswari Sengupta
Rajeswari Sengupta India's overzealous anti-dumping response may gradually fuel protectionism Its liberal use of anti-dumping duties risks turning into protectionism - and may do more harm than good Bhushan Power and Steel case: A test for India's insolvency regime In a major reversal, the Supreme Court ruled that the resolution plan for BPSL, approved by the committee of creditors (CoC) and cleared by both the insolvency and the appellate tribunals Updated On : 19 May 2025 | 11:09 PM IST India must watch out for GDP growth with third chance at doorstep Having missed two chances to boost manufacturing, India can't afford to miss the third one now at its doorstep Updated On : 14 Apr 2025 | 11:09 PM IST Updated On : 18 Mar 2025 | 3:20 PM IST Budget 2025: Balancing reforms and fiscal consolidation to revive growth The two key questions are: What is the diagnosis of the economic slowdown? And what can the Budget do to address it? Updated On : 20 Jan 2025 | 11:37 PM IST Rajeswari Sengupta & Anirudh Burman: Ushering in insolvency professionals Countries such as the United Kingdom and Canada have a well-developed cadre of self-regulated insolvency professionals Updated On : 20 Nov 2016 | 9:30 AM IST GDP conundrum: Is India booming? While CSO insists India is the world's fastest-growing large economy, private economists say the country is struggling to recover from its post-2010 downturn Updated On : 17 Nov 2016 | 4:19 PM IST Anirudh Burman & Rajeswari Sengupta: Clear the air before enforcing Bankruptcy Code Poor regulation of the insolvency professional industry will lead to poor bankruptcy outcomes Updated On : 09 Oct 2016 | 9:59 PM IST Pratik Datta & Rajeswari Sengupta: RBI should not regulate asset reconstruction companies Banking and stressed asset management are two separate businesses Updated On : 02 Jul 2016 | 10:02 PM IST
Business Wire
28-05-2025
- Business
- Business Wire
Everstream Reaches Agreement for Sale of Business to Bluebird Fiber
CLEVELAND--(BUSINESS WIRE)--Everstream (the 'Company'), a business-only fiber network, today announced that it has reached an agreement to sell substantially all of its operations to an affiliate of Bluebird Fiber ('Bluebird'), a regional provider of fiber-based connectivity solutions for businesses. The transaction will enable the Company to advance its core market optimization strategy from a strengthened financial position. This step follows Everstream's sale of its Illinois and St. Louis metropolitan area networks and its previously announced plan to wind down its Pennsylvania operations. 'Over the last decade, Everstream has established itself as a leading provider of fiber connectivity across the Midwest and Mid-Atlantic, distinguished by our speed, reliability, and expert support,' Everstream CEO Ken Fitzpatrick said. 'As we focus on advancing our core market optimization strategy, we have determined that a sale of our business is the best path to ensure Everstream meets the evolving connectivity needs of the businesses we serve for years to come. Under new ownership, we can continue to invest responsibly across our core markets for the benefit of our valued customers, employees, and other stakeholders.' 'We share Everstream's passion for providing mission-critical, high-quality business fiber services and putting our customers at the center of everything we do,' Bluebird CEO Jason W. Adkins said. 'We are excited about the opportunity to benefit from Everstream's best-in-class network, complementary footprint, and talented team members.' To complete this value-maximizing transaction in an efficient manner, Everstream and certain of its affiliates commenced voluntary chapter 11 proceedings in the United States Bankruptcy Court for the Southern District of Texas (the 'Court'). During these proceedings, Everstream will operate as usual, serving its valued enterprise, wireless, and wholesale customers without interruption. The Company has secured a commitment for $55 million of new money debtor-in-possession (DIP) financing from certain of its existing lenders, which, subject to Court approval and when combined with cash on hand, will fund the business through completion of the sale. The 'stalking horse' agreement with Bluebird was reached following an extensive marketing process and provides for the purchase of substantially all assets as well as the assumption of certain liabilities. The Company is seeking approval of this agreement pursuant to section 363 of the Bankruptcy Code, thereby making it subject to higher or otherwise better offers from other interested parties. If Bluebird is ultimately the successful bidder, it intends to retain the vast majority of the Company's employees across Everstream's markets at close. Completion of the sale to Bluebird, if the successful bidder, is targeted by year end, subject to satisfaction of all closing conditions, including regulatory approvals. The Company is also filing with the Court a series of customary motions to maintain business-as-usual operations and uphold commitments to its stakeholders during the process. These 'first day' motions include requests to continue to pay wages and provide benefits to employees in the ordinary course as well as maintain existing customer programs. Suppliers and contractors will be paid in the ordinary course for authorized goods received and services rendered after the filing. Additional information about the chapter 11 cases and proposed sale can be found at Suppliers and contractors with questions can call (855) 761-1230 (toll-free) or +1 (725) 240-7006 (international) or email EverstreamInquiries@ Weil, Gotshal & Manges LLP is serving as legal advisor, Alvarez & Marsal North America, LLC is serving as restructuring advisor, Bank Street Group is serving as M&A advisor, PJT Partners LP is serving as investment banker, and Kekst CNC is serving as strategic communications advisor to the Company. Kirkland & Ellis LLP is serving as legal advisor, Leo Berwick is serving as financial due diligence and tax advisor, and TD Securities is serving as sole financial advisor to Bluebird Fiber. About Everstream® Everstream has raised the bar for business connectivity, delivering a business-only fiber network with the speed, reliability, scale and performance that today's enterprises demand. With approximately 24,000 route miles of fiber and speeds up to 100 Gbps, Everstream's enterprise-grade network delivers robust business fiber services, including dedicated internet access, dark fiber, Ethernet and data center solutions. Through its 'Do What You Say You Will Do' approach, Everstream is a valued partner dedicated to the success of business customers. For more information, visit About Bluebird Fiber Bluebird Fiber is a communications infrastructure provider and data center operator. Since 1999, Bluebird Fiber, headquartered in Missouri, has provided internet and transport services, via its fiber infrastructure, to Carriers and Enterprises in Missouri, Illinois, Kansas, Iowa, and the surrounding states. Bluebird owns two data centers: an underground facility in Springfield, MO, and a facility in the Quad Cities. Bluebird operates more than 11,000 fiber route miles of high-speed broadband and fiber-optic connections with over 82,000 on-net and near-net buildings and 163 Points of Presence (PoP) sites spanning the Midwest, including the major cities of Chicago, St. Louis, Kansas City, Springfield (MO and IL), Tulsa, Peoria, Bloomington, Normal and the Quad Cities. To learn more, please visit our website and follow us on LinkedIn, Facebook and X (formerly, Twitter).
Yahoo
28-05-2025
- Business
- Yahoo
Everstream Reaches Agreement for Sale of Business to Bluebird Fiber
Provides Strengthened Financial Position to Advance Strategy of Core Market Optimization Customers to Continue Receiving Same Speed, Reliability, and Expert Support Commences Chapter 11 Proceedings to Complete Value-Maximizing Transaction Secures $55 Million in New Money DIP Financing to Support Ongoing Ordinary Course Operations CLEVELAND, May 28, 2025--(BUSINESS WIRE)--Everstream (the "Company"), a business-only fiber network, today announced that it has reached an agreement to sell substantially all of its operations to an affiliate of Bluebird Fiber ("Bluebird"), a regional provider of fiber-based connectivity solutions for businesses. The transaction will enable the Company to advance its core market optimization strategy from a strengthened financial position. This step follows Everstream's sale of its Illinois and St. Louis metropolitan area networks and its previously announced plan to wind down its Pennsylvania operations. "Over the last decade, Everstream has established itself as a leading provider of fiber connectivity across the Midwest and Mid-Atlantic, distinguished by our speed, reliability, and expert support," Everstream CEO Ken Fitzpatrick said. "As we focus on advancing our core market optimization strategy, we have determined that a sale of our business is the best path to ensure Everstream meets the evolving connectivity needs of the businesses we serve for years to come. Under new ownership, we can continue to invest responsibly across our core markets for the benefit of our valued customers, employees, and other stakeholders." "We share Everstream's passion for providing mission-critical, high-quality business fiber services and putting our customers at the center of everything we do," Bluebird CEO Jason W. Adkins said. "We are excited about the opportunity to benefit from Everstream's best-in-class network, complementary footprint, and talented team members." To complete this value-maximizing transaction in an efficient manner, Everstream and certain of its affiliates commenced voluntary chapter 11 proceedings in the United States Bankruptcy Court for the Southern District of Texas (the "Court"). During these proceedings, Everstream will operate as usual, serving its valued enterprise, wireless, and wholesale customers without interruption. The Company has secured a commitment for $55 million of new money debtor-in-possession (DIP) financing from certain of its existing lenders, which, subject to Court approval and when combined with cash on hand, will fund the business through completion of the sale. The "stalking horse" agreement with Bluebird was reached following an extensive marketing process and provides for the purchase of substantially all assets as well as the assumption of certain liabilities. The Company is seeking approval of this agreement pursuant to section 363 of the Bankruptcy Code, thereby making it subject to higher or otherwise better offers from other interested parties. If Bluebird is ultimately the successful bidder, it intends to retain the vast majority of the Company's employees across Everstream's markets at close. Completion of the sale to Bluebird, if the successful bidder, is targeted by year end, subject to satisfaction of all closing conditions, including regulatory approvals. The Company is also filing with the Court a series of customary motions to maintain business-as-usual operations and uphold commitments to its stakeholders during the process. These "first day" motions include requests to continue to pay wages and provide benefits to employees in the ordinary course as well as maintain existing customer programs. Suppliers and contractors will be paid in the ordinary course for authorized goods received and services rendered after the filing. Additional information about the chapter 11 cases and proposed sale can be found at Suppliers and contractors with questions can call (855) 761-1230 (toll-free) or +1 (725) 240-7006 (international) or email EverstreamInquiries@ Weil, Gotshal & Manges LLP is serving as legal advisor, Alvarez & Marsal North America, LLC is serving as restructuring advisor, Bank Street Group is serving as M&A advisor, PJT Partners LP is serving as investment banker, and Kekst CNC is serving as strategic communications advisor to the Company. Kirkland & Ellis LLP is serving as legal advisor, Leo Berwick is serving as financial due diligence and tax advisor, and TD Securities is serving as sole financial advisor to Bluebird Fiber. About Everstream® Everstream has raised the bar for business connectivity, delivering a business-only fiber network with the speed, reliability, scale and performance that today's enterprises demand. With approximately 24,000 route miles of fiber and speeds up to 100 Gbps, Everstream's enterprise-grade network delivers robust business fiber services, including dedicated internet access, dark fiber, Ethernet and data center solutions. Through its "Do What You Say You Will Do" approach, Everstream is a valued partner dedicated to the success of business customers. For more information, visit About Bluebird Fiber Bluebird Fiber is a communications infrastructure provider and data center operator. Since 1999, Bluebird Fiber, headquartered in Missouri, has provided internet and transport services, via its fiber infrastructure, to Carriers and Enterprises in Missouri, Illinois, Kansas, Iowa, and the surrounding states. Bluebird owns two data centers: an underground facility in Springfield, MO, and a facility in the Quad Cities. Bluebird operates more than 11,000 fiber route miles of high-speed broadband and fiber-optic connections with over 82,000 on-net and near-net buildings and 163 Points of Presence (PoP) sites spanning the Midwest, including the major cities of Chicago, St. Louis, Kansas City, Springfield (MO and IL), Tulsa, Peoria, Bloomington, Normal and the Quad Cities. To learn more, please visit our website and follow us on LinkedIn, Facebook and X (formerly, Twitter). View source version on Contacts Media Contacts:For EverstreamKekst CNCJeremy Fielding / Sherri L. Toub / Daniel HoadleyEverstreamMedia@ For Bluebird FiberJill Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
