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Specializing in insolvency and complex commercial matters since 1974

Bankruptcy Court Confirms Chapter 11 Plan Of Reorganization For Dunkins Diamonds, Inc. And Affiliates

On August 5, 2009, the United States Bankruptcy Court for the Middle District of Florida, Ft. Myers Division, entered an Order Confirming Debtors' Revised Joint Plan of Reorganization for Dunkin's Diamonds, Inc., and five affiliates. Unlike other well publicized diamond retail cases [which have been total liquidations], in this the companies will continue to operate eight retail locations in Southwest Florida and Ohio post confirmation, with approximately 100 employees. The initial filing on November 6, 2009 followed an involuntary Chapter 7 case filed in Ohio. Stichter Riedel successfully procured a transfer of venue to the Ft. Myers Division of the Middle District of Florida. As of the petition date, the Debtors operated 10 locations. The Chapter 11 filings allowed the Debtors to conduct bankruptcy Court approved going-out-of-business sales in select locations, shut down unprofitable locations, renegotiate their line of credit with Webster Business Credit Corporation, and otherwise restructure obligations to creditors and generally reduce leverage by over $7 million. Stephen R. Leslie and Daniel R. Fogarty led the firm’s representation in these cases.