Delta Apparel, Inc. (NASDAQ:DLA) shares are trading lower and are halted during Monday’s session after the company announced that it filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code.
On June 30, Delta Apparel and its domestic subsidiaries, including Salt Life Beverage, LLC and Salt Life, LLC, filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the District of Delaware.
The debtors will continue operating as debtors-in-possession and seek to sell their assets through competitive bidding or strategic arrangements. They are also seeking approval for initial motions to maintain normal operations during the bankruptcy process.
Additionally, the debtors plan to file a motion for a senior secured super-priority debtor-in-possession financing arrangement with Wells Fargo and other existing lenders to fund operations during the bankruptcy. The terms of this financing will be disclosed upon approval by the Bankruptcy Court.
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According to data from Benzinga Pro, DLA has a 52-week high of $11.02 and a 52-week low of $0.40.