Global Technovations Bankruptcy Case Venue Transferred to Michigan

Yesterday, a Delaware bankruptcy court transferred venue of Global Technovations Inc.'s chapter 11 case to the Bankruptcy Court for the Eastern District of Michigan. Judge Mary Walrath stated that "Due to the present burden of cases on the court in this district, the chapter 11 cases of Global Technovations et al should be transferred to the Michigan court."

Recently, Global Technovations received interim approval of a reduced DIP financing agreement. Under the DIP the debtor can use up to $500,000 until Jan. 15. The company reduced its original $1.2 million DIP request after Judge Walrath expressed concerns about unnecessary borrowing.

Global Technovations and three affiliates filed for on Jan. 3, listing consolidated assets of roughly $59.2 million and liabilities of $59.8 million.