Coyne’s Bankruptcy Filing Obtains Buyers for All Plants

by San Antonio Attorney

Coyne International Enterprises Corporation, a United States commercial laundry service company, recently filed for bankruptcy.  The case is currently progressing in its Chapter 11 filing last July in the U.S. Bankruptcy Court and will remain on track to complete planned sales of its operating units as reflected in a balance sheet, according to a press release.

The affected branches that will be in the proposed sale include the New Bedford branch in Massachusetts that will soon be sold to Clean Uniforms and More. Prudential Overall Supply will purchase two outlets: Vancouver and South Carolina Branch. The remaining plants and service centers such as the ones located in Tennessee, Cleveland, Kentucky, New York and Pennsylvania, will be assumed by the company’s existing senior management team. New York branches consist of Syracuse outlets.

Operating under the supervision of the Bankruptcy Court, Coyne’s present management team is presently leading the company throughout the Chapter 11 process. Recently, Coyne filed notices under the Worker Adjustment and Retraining Notification Act.  This was a part of ensuring a smooth transition to buyers without service interruptions.

Coyne CEO Mark Samson said that WARN Act filings were required since they are expecting a change of management in the business entities of Coyne.

He also said that there are interested parties for the company’s facilities. Based on the current arrangement, out of 620 jobs, 525 of them will be retained.

NXT Capital LLC will provide the company with a hefty $3.5 million in debtor-in-possession financing to aid the company’s operations as stipulated in Chapter 11.

Herrick, Feinstein, LLP serves as the legal lead bankruptcy counsel for Coyne. Phillips Lytle, LLP is assigned for local counsel. Cohn Reznick LLP, serves as the financial adviser and the designated investment banker is SSG Capital Advisors LLC.

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