7/14/2021                                                                                                                           [Edition 1, Volume 5]

In many distressed situations, there are opportunities for clients to acquire assets at discounted prices. Gensburg Calandriello & Kanter is providing this bi-monthly summary of recent Chapter 11 cases filed in Illinois, Indiana, Wisconsin, Michigan and Ohio, as well as hospitality cases filed nationally, in which debtors (not necessarily clients of GCK) own assets that may be of interest, thereby making GCK clients aware of potential opportunities and ventures in the distressed assets market.  Cases listed under “Assets for Sale” feature assets currently available.  In cases listed under “New Filings,” the debtors have not yet found it necessary or otherwise decided to liquidate their assets, but may nonetheless be receptive to inquiries or offers to acquire some or all of the assets that they own.

New Filings

The following is an updating list of cases which are currently in, or entering chapter 11 bankruptcy.  We hope that these summaries provide you with the ability to quickly determine the relevancy of any given case and gauge your level of interest in the assets contained within.  If you need further information on any of the opportunities listed, please contact us by clicking here.

Illinois

Financial Data and Publications – Chicago, Illinois

In re AP Markets, Inc. (Bankr. N.D. Illinois); Case No. 21-07969

• AP Markets, Inc. filed for relief under Chapter 11 of the Bankruptcy Code on June 29, 2021, in the Northern District of Illinois. AP Markets states that it provides financial data and content to news publications, combining financial markets data with daily and weekly modular infographics to create newspaper presentations. Debtor estimates its assets to have a total value of no more than $50,000, while its total liabilities are $500,001 – $1 million. Debtor’s largest unsecured creditors hold claims totaling $393,976.75. No income or reason for bankruptcy is disclosed by Debtor.

Advertising and Marketing Holding Company – Chicago, Illinois

In re Channel Clarity Holdings LLC (Bankr. N.D. Illinois); Case No. 21-07972

• On June 30, 2021, Channel Clarity Holdings LLC filed for relief under Chapter 11 of the Bankruptcy Code in the Northern District of Illinois. Channel Clarity Holdings is a holding company which, through its subsidiaries, operates an advertising platform that includes an employment platform and content network businesses  to which individuals can subscribe.  Debtor estimates its assets to have a total estimated value between $100,001 and $500,000, while its liabilities have a total estimated value of $1,000,001-$10 million. Debtor does not disclose any specific assets, but does disclose that its 20 larges unsecured creditors hold claims totaling $701,837.12. No income or reason for bankruptcy was disclosed by Debtor.

Grocery Store & Deli – La Salle, Illinois

In re Hari 108, LLC (Bankr. N.D. Illinois); Case No. 21-08044

• Hari 108, LLC filed for relief under Chapter 11 of the Bankruptcy Code on June 30, 2021, in the Norther District of Illinois. Hari 108, operating under the assumed name Illinois Valley Food & Deli, operates a single location grocery store in La Salle, Illinois. Debtor estimates that its assets have a total value of $100,001 – $500,000.  Debtor estimates that its total liabilities are between $1,000,001 and $10 million, with its largest unsecured creditors holding claims totaling $1,753,339.75.  Debtor does not disclose any income nor a reason for bankruptcy.

Bank & Credit Union – Palatine, Illinois

In re Northwest Bancorporation of Illinois, Inc. (Bankr. N.D. Illinois); Case No. 21-08123

• Northwest Bancorporation of Illinois, Inc. filed for relief under Chapter 11 of the Bankruptcy Code on July 2, 2021, in the Northern District of Illinois. Northwest Bancorporation of Illinois, Inc. (FDBA Hershenhorn Bancorporation, Inc.) is a registered bank holding company, which owns and controls First Bank and Trust Company of Illinois, a state-chartered nonmember bank, in Palatine, Illinois, and various nonbank subsidiaries. Debtor previously filed for bankruptcy in the Northern District of Illinois, Eastern Division, on April 20, 2019.  Debtor estimates its total assets and liabilities to both be between $10,000,001 and $50 million.  Debtor does not disclose any specific assets, but does disclose unsecured claims totaling $18,407,554.20.  No income or reason for bankruptcy was provided by Debtor.

Indiana

Restaurant and Culinary Experience – Indianapolis, Indiana

In re Boston Solutions, Inc. (Bankr. S.D. IN); Case No. 21-03158

• On July 8, 2021, Boston Solutions, Inc. filed for relief under Chapter 11 of the Bankruptcy Code in the Southern District of Indiana. Boston Solutions, Inc., which has operated under the names Dining with JJ, Chef JJ, Chef JJ’s Back Yard, and Chef JJ’s Gourmet Grill, is a restaurant offering personal and hands-on culinary experiences with a focus on kamado style cooking, corporate team building, private events, and grilling classes. As described below, an affiliate of Debtor, Chef JJ’s Downtown LLC, has also filed for bankruptcy. Debtor discloses personal property consisting of and valued at by Debtor as follows: bank accounts valued at $111,000.00, accounts receivable booked at $15,279.17, and general office furniture and equipment valued at $2,200.00. Debtor’s largest unsecured creditors hold claims totaling $404,207.83 and Debtor’s secured creditors hold claims totaling $100,414.31. For 2020 Debtor disclosed income of $251,172.63 and income of $147,127.00 for 2019.

Restaurant and Culinary Experience – Indianapolis, Indiana

In re Chef JJ’s Downtown LLC (Bankr. S.D. IN); Case No. 21-03159

• Chef JJ’s Downtown LLC, an affiliate of Boston Solutions, Inc., also filed for relief under Chapter 11 of the Bankruptcy Code on July 8, 2021, in the Southern District of Indiana. Chef JJ’s Downtown appears to operate in a manner similar to Boston Solutions, Inc., as a restaurant offering personal and hands-on culinary experiences with a focus on kamado style cooking, corporate team building, private events, and grilling classes. Debtor estimates the value of its assets is no more than $50,000, while the value of its liabilities is estimated to be between $100,001.00 and $500,000.00. Debtor’s only disclosed personal property consists of a bank account valued at $6,000.00. Unsecured creditors hold claims against Debtor totaling $176,643.67. Debtor discloses income of $633,443.42 for 2019, $254,337.88 for 2020, and $161,373.00 to date for 2021. Debtor does not disclose any real property but does disclose a pending mortgage foreclosure action.

Michigan

Wholesale Supplier – Clinton Township, Michigan

In re Select Distributors, LLC (Bankr. E.D. MI); Case No. 21-45689

• On July 6, 2021, Select Distributors, LLC filed for relief under Chapter 11 of the Bankruptcy Code in the Eastern District of Michigan. According to its website, Select Distributors is a wholesale supplier of general retail and smoke shop items to discount stores, dollar stores, wholesalers, jobbers, supermarkets, convenience stores and other types of retailers and wholesales. Debtor disclosed that its affiliate, SD Import, LLC (below), also filed for relief under Chapter 11 of the Bankruptcy Code on July 6, 2021, in the Eastern District of Michigan.  Debtor did not disclose any specific assets or liabilities, but estimates its total assets to be no more than $50,000 and its total liabilities to be between $100,001 and $500,000.  No income or reason for bankruptcy was disclosed by Debtor.

Import Industry – West Bloomfield, Michigan

In re SD Import, LLC (Bankr. E.D. MI); Case No. 21-45687

• SD Import, LLC filed for relief under Chapter 11 of the Bankruptcy Code on July 6, 2021, in the Eastern District of Michigan. SD Import does not appear to have a website and did not disclose information about its business. However, Debtor discloses that it is an affiliate of Select Distributors, LLC, which also filed for relief under Chapter 11 of the Bankruptcy code on July 6, 2021.  Debtor estimates that its assets are worth no more than $50,000 and that its liabilities are $500,001 – $1 million. Debtor does not disclose specific assets or liabilities.  No income was disclosed by Debtor.

Wisconsin

Forestry and Logging Services – Laona, Wisconsin

In re Connor Forest Management LLC (Bankr. E.D. Wis.); Case No. 21-23636

• Connor Forest Management LLC filed for relief under Chapter 11 of the Bankruptcy Code on June 25, 2021, in the Eastern District of Wisconsin. Connor Forest Management is a logging services and land clearing company that asserts also has the ability to haul various timber products and specialty items, such as logs, lumber, stumps, debris , brush and rail ties. Debtor discloses personal property consisting of and valued at by debtor as follows: bank accounts valued at $14,420.22; inventory, including raw materials and supplies, valued at $145,661.84; farm machinery and equipment with a total estimated value of $1,296,000.00; and non-farm vehicles and trailers with an estimated value of $107,742.00.  Debtor further disclosed real property consisting of and valued at by debtor as follows: the real property commonly known as 4442 Airport Road, Crandon, Wisconsin, with an appraised value of $300,000.00; the real property commonly known as 5062 US Highway 8, Laona, Wisconsin, with an appraised value of $185,000.00; the real property commonly known as 6580 Schmelling Lane, Laona, Wisconsin, with an pending sale offer of $105,000.00; and an unidentified piece of real property with an appraised value of $58,500.00.

Debtor’s disclosed liabilities comprising $1,878,151.87 in secured claims; $185,854.43 in priority unsecured claims, and $2,309,221.45 in nonpriority unsecured claims. For the three years preceding Debtor’s petition, Debtor disclosed gross revenue of: $5,208,484.00 for 2018; $4,416,357.00 for 2019; and $2,999,818.00 for 2020.  Debtor’s gross revenue for 2021 through the date of filing is $966,202.01. Debtor did not disclose a specific reason for filing for bankruptcy.

Garden Centers & Farm Supply Industry – Gay Mills, Wisconsin

In re Ridgetop AG, LLC (Bankr. W.D. Wis.); Case No. 3-21-11388

• On June 28, 2021, Ridgetop AG LLC filed for relief under Chapter 11 of the Bankruptcy Code in the Western District of Wisconsin. Ridgetop AG LLC describes itself as a supply company specializing in seed sales, fertilizer, and AG chemicals. Debtor estimates its total assets and liabilities to be $100,001-$500,000.  Debtor disclosed income for 2021, through June 24, 2021, of $192,414.89. Debtor’s largest unsecured creditors hold unsecured claims totaling $193,015.14. The reason for bankruptcy was not provided.

Hospitality

Hotels – Bloomfield Hills, Michigan

In re Soo Hotels, Inc. (Bankr. E.D. MI); Case No. 21-45708

• On July 7, 2021, Soo Hotels, Inc. filed for relief under Chapter 11 of the Bankruptcy Code in the Eastern District of Michigan. Not much information is available about Debtor’s business, but it appears to be a hotel/motel. Debtor estimates that its total assets and liabilities are both $500,000 – $1 million. No specific assets or liabilities are disclosed by Debtor. Nor does Debtor disclose income or the reason for bankruptcy.

Hotel – Lenox, Massachusetts

In re The Frederick LLC (Bankr.D.Mass.); Case No. 21-30240

• The Debtor states that it owns and operates the Kemble Inn, a nine-guestroom mansion built in the 1880’s, and Table Six, a fine dining restaurant and bar, located in Lenox, Massachusetts. The Debtor states that it purchased the property in 2010, and invested not less than $2 million dollars to renovate and expand what it describes as a boutique hotel. It notes that in 2019 it was named one of the Best Inns in the Berkshires by New England Magazine.  The Debtor states that it primarily derives revenues from its inn operations. Historically, the Debtor states that it also received income from operating its restaurant.  Prior to the Covid-19 pandemic, the restaurant had seating capacity for 75 people.  The Debtor has disclosed that its books and records indicate that in 2019, the Debtor had gross revenue of $921,384 and realized an operating loss of $104,623, and, in 2020, the Debtor had gross revenue of approximately $127,173 and realized an operating loss of approximately $245,072.  It notes that as of June 28, 2021, the Debtor’s gross revenue was approximately $129,268.08 and it is currently showing net ordinary income of $24,444.52 year-to-date.

Hotel – Webster, Texas

In re Kornbluth Texas, LLC (Bankr.S.D.Tex.); Case No. 21-32261

• On July 5, 2021, the Debtor filed a petition for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas. The Debtor states that it operates a 129 room Holiday Inn hotel located in Webster, Texas. The Debtor’s website disclose that the hotel has as amenities a restaurant, a bar/lounge, a snack bar/deli, an indoor pool and fitness center.  The debtor’s budget discloses that it generates gross monthly income of $270,000, monthly expenses of $150,850 (excluding debt service) and monthly net income of $128,150.

NOTICE AND DISCLAIMER

The information contained in this article represents redactions from pleadings filed in the relevant bankruptcy case, supplemented, from time-to-time with data from the internet. Gensburg Calandriello & Kanter, P.C. has not independently investigated, nor verified the accuracy of this information and, therefore, does not make any representation or warranty whatsoever, express or implied, as to the content, accuracy or completeness of any of information contained herein, including, but not limited to (i) the value of any assets referenced herein, (ii) whether such assets are free from liens and encumbrances, or (iii) the environmental condition of any real estate.  Therefore, while the information contained in this article is believed to be accurate, it should not be relied upon, and does not constitute legal or financial advice. Thus, parties reviewing or acting on this material must make an independent determination as to whether or not a particular course of action is generally appropriate.

Gensburg Calandriello & Kanter, P.C.

Lane Gensburg                                          E. Philip Groben

Anthony Calandriello                                   Alexis Clinebell

Gary Kanter                                               Michael Gutting

Matthew Gensburg                                     Anne Kim

Norman Berger                                           Sandra Mertens

Giselle Piraro                                             Kathryn Rinkus

This information is based upon publicly available information and is intended to provide a brief overview of each opportunity.

Gensburg Calandriello & Kanter, P.C. | Attorneys at Law | WWW.GCKLEGAL.COM