North America's only wood fiber insulation producer, GO Lab, Inc. and its subsidiary GO Lab Madison, LLC, have filed a motion seeking court approval to dissolve five non-operating affiliates as part of their ongoing Chapter 11 reorganization.
The Maine-based sustainable insulation manufacturer, which filed for bankruptcy protection on March 25, 2025, is looking to streamline its corporate structure by eliminating what it describes as "empty shells" that will have no role in the reorganized company's future operations, according to court documents filed May 20 in the U.S. Bankruptcy Court for the District of Delaware.
"The Non-Debtor Subsidiaries have no operations, little or no assets, and few or no creditors," the company stated in its filing. "Upon the Debtors' emergence from Chapter 11, the Non-Debtor Subsidiaries will have no role in the Debtor's operations and no on-going business purpose."
GO Lab is seeking to dissolve GO Lab Madison Holdings, LLC; GO Lab Lending, LLC; GO Lab Madison Finance, LLC; GO Lab Oregon, LLC; and GO Lab Madison Office, LLC - all Delaware limited liability companies owned by debtor GO Lab, Inc. The company argues that eliminating these entities "will save the Reorganized Debtors from having to continue to pay the annual franchise taxes, and will otherwise simplify and streamline their reorganization and their post-reorganization corporate structure."
The unique green building materials company manufactures insulation products using wood waste from sawmills and chips from low-value, small-diameter trees, which the company processes into three commercial product lines: TimberBatt, TimberFill, and TimberBoard. In court filings, GO Lab states its products "arrive at construction sites with a negative carbon footprint."
GO Lab has already filed its reorganization plan, submitting its First Amended Combined Disclosure Statement and Joint Chapter 11 Plan on April 18, 2025. According to the motion, GO Lab Madison conducts "substantially all of the Debtors' operations and owns the substantial majority of the Debtors' assets."
The company's legal team, led by Mark E. Felger and Simon E. Fraser of Cozen O'Connor's Wilmington office, cited Section 363(b) of the Bankruptcy Code, which allows debtors to use property of the estate outside the ordinary course of business after notice and hearing, as the legal basis for the requested dissolution authority.
A hearing on the motion is scheduled for June 10, 2025, at 10:30 a.m., with an objection deadline of June 3, 2025.
The case is being overseen by Judge Karen B. Owens in the Delaware bankruptcy court under case number 25-10557 (KBO).
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