Carla’s Pasta: Court denies committee’s motion to terminate exclusivity

By Sarah Lizee

Olympia, Wash., June 21 – The court overseeing Carla's Pasta, Inc.’s Chapter 11 bankruptcy cases denied the official committee of unsecured creditors’ motion seeking termination of the company’s exclusive plan periods, according to an order filed Friday.

In addition, the company’s hearing on approval of its disclosure statement has been moved to 11 a.m. ET on June 22.

The U.S. Bankruptcy Court for the District of Connecticut said that no earlier than 5 p.m. ET on June 22, the committee may file a statement with the court and provide notice to parties in interest that the negotiations on a consensual plan with the debtors and lenders have not been agreed to by the committee.

Upon filing that statement, the court will set an expedited hearing to determine the merits of the committee’s motion upon two business days’ notice.

As previously reported, the company asked the court to extend the plan filing period through Aug. 7 from June 8 and the solicitation period through Oct. 6 from Aug. 7.

The committee has said its attempts to work with the debtor in a collaborative manner to close an asset sale and exit bankruptcy have been “consistently thwarted” by the debtors’ failure and refusal to share documents and other information and their failure to include the committee in matters critical to the administration of the cases.

The South Windsor, Conn.-based pasta manufacturing company filed bankruptcy on Feb. 8 under Chapter 11 case number 21-20111.

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