On October 8, 2015, Malibu Lighting Corporation and 6 affiliates filed for relief under chapter 11 of the Bankruptcy Code. The cases are jointly administered under Case Number 15-12080 and presided over by Judge Gross. The first day hearing was held on October 9, 2015. The second day hearing is scheduled for October 27, 2015 at 10:00 a.m.
The majority of the information available about the Debtors comes from the Declaration of David M. Baker in Support of First Day Motions (D.I. 3) (the "Declaration"). There are three primary debtors in these cases: Malibu Lighting Corporation ("MLC"), Outdoor Direct Corporation ("ODC"), and National Consumer Outdoors Corporation ("NCOC"). The Debtors filed these chapter 11 cases in order to effectuate an orderly disposition of their assets in a manner that will maximize recoveries by all constituents, including a going concern sale of the operating assets of NCOC and orderly liquidation sales of assets of MLC and ODC.
MLC was a manufacturer and supplier of outdoor and landscape lighting products. MLC's assets currently consist primarily of inventory, accounts receivable, intellectual property, and equipment. The bulk of its assets are currently being marketed for sale by the Debtors' proposed investment banker, Piper Jaffray & Co.
Another debtor, ODC, was a manufacturer and supplier of a variety of consumer goods, but began winding down operations after its principal customer, Home Depot, terminated its relationship with the company. The debtors plan to sell the assets of ODC through its bankruptcy proceeding.
NCOC is a leading manufacturer and supplier of pet bedding and pet accessory products. In addition, it markets and sells boat covers manufactured primarily from Chinese suppliers. This is a profitable company. For the fiscal year ending January 31, 2105, NCOC generated $117.8 million in gross sales and positive EBIDTA of $9.6 million on a stand-alone basis. NCOC reported net income of $5.4 million for the fiscal year 2014. The debtors intend to sell NCOC as a going concern.
While it does not appear that there will be a great number of landlords affected by this bankruptcy case. There will be a large number of claims as these debtors have a significant retail presence. If you want to stay up-to-date on the filings in this case, I'd recommend you keep an eye on the website created by the claims and noticing agent, Kurtzman Carson Consultants LLC. The website contains a complete copy of the bankruptcy docket, free to download and view. The website is located at http://www.kccllc.net/Malibu.
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