Drilling Rig Maker Faces Heat Over Insider’s Ch. 11 Roles

Law360 (June 25, 2019, 9:41 PM EDT) -- Drilling rig maker Schramm Inc. found itself locked in battle on its first day in Delaware bankruptcy court Tuesday after a creditor drew out testimony that a judge said raised questions about an insider's financing and roles in the case.

West Chester, Pennsylvania-based Schramm, which produces drilling equipment used worldwide, sought Chapter 11 protection Monday, citing weakened markets for its products and an inability to meet creditor forbearance agreements despite deals that trimmed prepetition debt burdens from more than $70 million to about $20 million.

The company sought court approval Tuesday for a series of routine Chapter 11 administration approvals, but...

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