Carla’s Pasta objects to Dennis Engineering’s attempt to convert case

By Sarah Lizee

Olympia, Wash., July 27 – Carla's Pasta, Inc. objected to Dennis Engineering Group, LLC’s motion to convert the company’s bankruptcy cases to Chapter 7, according to a Monday filing with the U.S. Bankruptcy Court for the District of Connecticut.

The company said it has obtained universal voting class acceptances for its first amended joint Chapter 11 plan of liquidation, which is jointly sponsored by the debtors, the official committee of unsecured creditors and the senior secured lenders.

“The motion to convert must be denied because there is no cause to grant the motion to convert, or it will be rendered moot by the entry of the order confirming the plan,” Carla’s Pasta said in its objection.

The company said it acknowledges that at the time Dennis Engineering filed the motion on June 17, there was still a lot of uncertainty concerning the ability to reach sufficient support for the plan.

However, with all voting classes supporting the jointly sponsored plan, including Dennis Engineering, there is no cause to convert the cases.

“Even if Dennis Group were able to establish some remaining basis to convert, bankruptcy code section 1112(b)(2) justifies continuation in Chapter 11 until the effective date of the plan as consummation of the plan is in the best interest of the debtors’ creditors,” the company said.

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

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