Filing Alert: Cooperative Laundry Chapter 11
Cooperative Laundry Files Chapter 11 in District of Delaware
KNY 26671 LLC (dba Cooperative Laundry) and its debtor affiliate⁽¹⁾, a Kearny, NJ-based commercial laundry services provider, filed for Chapter 11 protection on Apr. 10 in the U.S. Bankruptcy Court for the District of Delaware.
The company attributes the filing to financial distress stemming from the Covid-19 pandemic and a fire at its operating facility. The situation was worsened by an eight- to nine-month delay in delivery of critical replacement equipment by vendor Herbert Kannegiesser GmbH, and the vendor’s alleged interference in the company’s business interruption insurance claim. These issues led to severe liquidity constraints, defaults on secured debt and lease obligations, and multiple creditor lawsuits.
The company reports $10 million to $50 million in both assets and liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 25-10688.
⁽¹⁾ Deqser LLC.
Top Unsecured Claims
Key Parties
Local Counsel:
- Ronald S. Gellert
- Gellert Seitz Busenkell & Brown, LLC
- Email: rgellert@gsbblaw.com
General Bankruptcy Counsel:
- Mayerson & Hartheimer, PLLC
Signatories:
- Sang Cho – Chief Executive Officer
Equity Security Holders (10% or More):
- Deqser LLC
- Kuzari Investor 26671 LLC
Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.
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