Bankruptcy court OKs Instant Brands restructuring plan (2024)

FAQs

Is Instant Brands still in bankruptcy? ›

Instant Brands emerges from chapter 11 as Corelle Brands.

In the restructuring plan, the debtor describes how they will repay the creditors and meet other financial obligations such as payroll and other taxes. The creditors review the plan and vote to approve it.

Last June, while majority-owned by private equity firm Cornell Capital, Instant Brands filed for Chapter 11. In October private equity firm Centre Lane Partners acquired the company after a competitive bankruptcy auction.

Background. A case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a "reorganization" bankruptcy. Usually, the debtor remains “in possession,” has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money.

The Instant Pot, for its part, is not dead. Cornell Capital has brought in a restructuring crew, and the brand's Chapter 11 bankruptcy filing allows it to continue doing business while it seeks relief from its debts.

On June 12, 2023 Instant Brands filed for chapter 11 bankruptcy. During bankruptcy proceedings, the company sold its appliance business ("Instant" branded products) to Centre Lane Partners. The company emerged from bankruptcy on February 27, 2024 under the previous Corelle Brands moniker.

While debt restructuring can negatively impact your credit score, it's generally still preferable to the impact a bankruptcy or foreclosure can have, and it can prevent more extreme financial obstacles in the future.

A RP enables a company to propose a compromise or arrangement to its creditors that can bind secured creditors, unsecured creditors, dissenting creditors and compromise members' rights. The plan largely mirrors a scheme of arrangement (with additional advantages and some differences).

With the merger, Instant Brands is now owned by Cornell Capital LLC and headquartered in Downers Grove, Illinois. On June 12, 2023, Instant Brands filed for Chapter 11 bankruptcy after high interest rates and waning access to credit hit its cash position and made its debts unsustainable.

Is Instant Brands owned by Corelle? ›

Corelle Brands is home to iconic, category-leading brands, including Instant™, Corelle®, Pyrex®, Corningware®, Snapware® and Chicago Cutlery®. We're passionate about delivering products that facilitate the joy we find in cooking and sharing food with family and friends.

About Instant Brands

The Company designs, manufactures and markets a global portfolio of innovative and iconic consumer lifestyle brands: Pyrex®, Corelle®, Corningware®, Snapware®, Chicago Cutlery® and Visions®.

Both options reduce leverage by exchanging existing debt for new securities (debt or equity). The main difference between them is that restructuring agreements avoid the deadweight costs of an immediate bankruptcy. However, they do not preclude a fu- ture bankruptcy case.

They have a right to perform a full audit of your accounts or check them any time it is necessary. However, it is rare for them to keep close tabs on every account.

Secured creditors like banks are going to get paid first. This is because their credit is secured by assets—typically ones that your business controls. Your plan and the courts may consider how integral the assets are that secure your loans to determine which secured creditors get paid first though.

If you own a Pyrex measuring cup and other Pyrex tempered glass kitchenware, you might have to stock up soon. Instant Brands, the parent company of Pyrex, Instant Pot, Corelle, Snapware, Corningware, Visions, and Chicago Cutlery, filed for bankruptcy protection earlier this week, making news headlines worldwide.

The maker of Pyrex glassware and Instant Pot multicookers has filed for bankruptcy protection, with as much as $1bn (£790m) in liabilities. Instant Brands blames high interest rates and weak demand for its problems. The company, which has more than 2,400 workers, plans to keep operating while it shakes up the business.