Filing Alert: Design Group Americas Chapter 11
IG Design Group Americas and Affiliates File Chapter 11 in Southern District of Texas
IG Design Group Americas, Inc. and its debtor affiliates including Lion Ribbon Texas Corp.⁽¹⁾, a Berwick, PA-based designer, manufacturer, and distributor of branded and private label consumer products, filed for Chapter 11 protection on Jul. 3 in the U.S. Bankruptcy Court for the Southern District of Texas.
The filing is intended to facilitate a §363 sale of certain business segments as going concerns, while concurrently winding down its domestic woven ribbon business. The company, an affiliate of Hilco Capital Group, cites liquidity challenges resulting from the loss of a major customer to liquidation and the impact of recent trade tariffs.
The company has secured a commitment for approximately $53 million in DIP financing from a Hilco affiliate to fund the Chapter 11 process and enters bankruptcy in active discussions with multiple interested parties regarding certain of its business segments.
The company reports $100 million to $500 million in both assets and liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 25-90164.
⁽¹⁾ The company's non-U.S. affiliates are not included in the Chapter 11 cases and will continue operating in the ordinary course while the company evaluates strategic alternatives for these entities in connection with the U.S. restructuring process. For a complete list of debtor entities, see the Chapter 11 Debtors table.
Chapter 11 Debtors
Top Unsecured Claims
Key Parties
Counsel:
- Caroline A. Reckler
- Latham & Watkins LLP
- Email: caroline.reckler@lw.com
Investment Banker and Financial Advisor:
- Huron Consulting Services LLC
Tax Services Provider:
- Deloitte Tax LLP
Conflicts Counsel:
- Liskow & Lewis, APLC
Communications Advisor:
- C Street Advisory Group, LLC
Signatories:
- Brett M. Anderson – Chief Strategy Officer
Claims Agent:
Equity Security Holders:
- Lion Ribbon Company, LLC – 100% Equity Interest
Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.
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