DeCurtis seeks conversion in wake of court’s IP ownership ruling

By Sarah Lizee

Olympia, Wash., Aug. 18 – DeCurtis Holdings LLC is seeking conversion of its Chapter 11 bankruptcy case to Chapter 7, according to an emergency motion filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The court recently found that Carnival Corp. has ownership rights in certain intellectual property the debtor was trying to sell in its bankruptcy proceedings.

The company said that, in the wake of the court’s opinion, the debtors, post-petition lender Invictus Global Management LLC, Carnival, Virgin Cruises and Disney Cruises met and conferred in an attempt to reach agreement on the terms of an injunction or a commercial resolution that would benefit all parties in interest.

But no such agreement has been reached, DeCurtis said.

And, because of the court’s recent opinion, the company said the debtors are now unable to obtain the incremental liquidity and won’t be able to maintain their Chapter 11 cases any longer.

On Wednesday, Invictus filed a termination declaration, ending the debtors’ use of cash collateral.

The debtors also have accrued about $3.1 million in administrative expenses, including for professional fees, that they are unable to satisfy.

Orlando, Fla.-based DeCurtis provides guest experience and operational management product-focused SaaS software solutions. The company filed bankruptcy on April 30 under Chapter 11 case number 23-10548.

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