10/15/2021 [Edition 1, Volume 9]
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
Real Estate Development – Chicago, Illinois
In re Navigant Development LLC (Bankr. N.D. IL); Case No. 21-10645
- Navigant Development LLC filed for relief under Chapter 11 of the Bankruptcy Code on September 15, 2021, in the Northern District of Illinois. Navigant Development LLC owns 100% of the equity interest in 1419 North Wells LLC, which, in turn, owns a commercial real estate building (the “Building”) on the front parcel of the real property located at 1419-1423 North Wells Street in Chicago, Illinois (the “Front Parcel”). The Debtor states that 1419 North Wells LLC has leased the majority of the Building to 3 retail tenants and is in the process of negotiating a lease for the remaining commercial space. The Debtor also directly owns the rear parcel at the same address, which currently is used as a parking lot. Debtor estimates the value of its assets and liabilities at between $1,000,001 and $10 million. Of the unsecured creditors, several hold partially secured claims totaling $1,199,282.19.
Transportation & Trucking Company – Homewood, Illinois
In re AB Robinson Trucking Inc. (Bankr. N.D. Illinois); Case No. 21-11021
- AB Robinson Trucking Inc. filed its Voluntary Petition for relief under Chapter 11 of the Bankruptcy Code on September 24, 2021, in the Northern District of Illinois. Operating primarily as a carrier for hire, AB Robinson Trucking Inc. appears to transport a variety of general freight and cargo throughout Illinois. On its Form 1120 Schedule L, the Debtor notes that as of the end of its tax year, it held cash of $192,016, buildings and other depreciable assets valued at $480,291 for total assets valued at $692,307. The form discloses net income per books of $3,647. No further information has been disclosed by Debtor at this time.
Paint and Wallpaper Company – Blue Island, Illinois
In re Calumet Paint & Wallpaper, Inc. (Bankr. N.D. Illinois); Case No. 21-11709
- On October 13, 2021, Calumet Paint & Wallpaper, Inc. filed for relief under Chapter 11 of the Bankruptcy Code in the Northern District of Illinois. Calumet Paint & Wallpaper described itself as an authorized Benjamin Moore Retailer specializing in interior and exterior paint and stain supplies in a variety of colors. Debtor estimates that the value of its assets and liabilities are both $500,001 to $1 million. Debtor attaches a Balance Sheet to its Petition which outlines Debtor’s current assets and liabilities, as of August 31, 2021. Debtor discloses and values its personal property as follows: bank accounts valued at $467,587.65, accounts receivable booked at $445,706.32, inventory valued at $603,294.89, fixed assets, including office and store equipment and trucks, valued at $57,386.48, other assets with a total value of $93,217.06, and total equity of $1,667,192.40. Debtor further discloses liabilities, including accounts payable valued at $224,765.99, Accrued sales tax of $24,564.00, and employee payroll of $6,555.75. Moreover, Debtor discloses that its unsecured creditors hold claims totaling $778,229.31. Debtor disclosed gross profit of $706,578.70 and net income of $31,741.95 for 2021 through August. No reason for bankruptcy was disclosed by Debtor.
Indiana
Apartment Buildings – West Lafayette, Indiana
In re Bairn, LLC (Bankr. N.D. IN); Case No. 21-40249
- Bairn, LLC filed for relief under Chapter 11 of the Bankruptcy Code in the Northern District of Indiana on October 8, 2021. Little information about Bairn, LLC’s business operations could be found online. That said, based on Debtor’s disclosed assets, it appears to own numerous pieces of real property, including at least one apartment building. Debtor estimates that the value of its assets and liabilities are both between $1,000,001 and $10 million and that funds will be available for distribution to unsecured creditors. Debtor discloses its personal property, and value thereof, as follows: bank accounts valued at $898.76, accounts receivable booked at $300,000, office furniture valued at $2,000, 50 window air conditioning units valued at $3,750, office equipment, including dishwashers, microwaves, stoves, refrigerators, washers, and dryers, with a combined value of $97,150. Debtor also discloses real property consisting of: numerous units located at the real property commonly known as 320 Brown Street, West Lafayette, Indiana, 1100-1102 South 21st Street, Lafayette, Indiana, 313 Perin Avenue, Lafayette, Indiana, 400 North Salisbury Street, West Lafayette, Indiana, 826 South 28th Street, Lafayette, Indiana, 3106 Fairwood Drive, Lafayette, Indiana, 2242 Wigeon Drive, Lafayette, Indiana, and 460 Vine Street, West Lafayette, Indiana, with an estimated total value of $6,062,500.00. Debtor further discloses two causes pending causes of action against third parties, a claim for property damage and a separate cause of action for breach of contract, promissory estoppel, forgery and counterfeiting, and fraud. These causes of action are valued at $13,300 by Debtor.
Debtor also provides details of secured and unsecured creditors. Debtor’s largest unsecured creditors hold claims totaling $166,399.57, while its secured creditors hold claims totaling $2,459,485.96. Debtor is currently the defendant in a pending mortgage foreclosure action in the Tippecaneo Superior Court, but no information is provided on the property being foreclosed on. For calendar year 2019, Debtor discloses gross revenue of $635,675.95. Gross income of $653,311.57 for 2020, and gross revenue of $232,797.91 for 2021 to the Petition date. No specific reason for bankruptcy is provided.
Wisconsin
Mexican Restaurant – Onalaska, Wisconsin
In re Manny’s Mexican Cocina, Inc. (Bankr. W.D. WI); Case no. 1-21-12059-cjf
- On October 6, 2021, Manny’s Mexican Cocina, Inc. d/b/a Manny’s Cocina filed for relief under Chapter 11 of the Bankruptcy Code in the Western District of Wisconsin. According to its website, Manny’s Cocina is a local restaurant serving Mexican coastal dishes, plus cocktails and microbrews, in a casual space. Manny’s Cocina’s co-debtor, Rivera Family Holdings, Inc., also filed for relief under Chapter 11 of the Bankruptcy Code (see below). Debtor estimates that its assets have a total value between $500,001 and $1 million. Likewise, Debtor estimates that its creditors hold claims between $500,001 and $1 million. Debtor has yet to disclose any specific assets or liabilities, nor does Debtor disclose any gross revenue or a reason for bankruptcy.
Holding Company – Onalaska, Wisconsin
Rivera Family Holdings, LLC (Bankr. W.D. WI); Case No. 1-21-12062-cjf
- Rivera Family Holdings LLC filed for relief under Chapter 11 of the Bankruptcy Code in the Western District of Wisconsin on October 6, 2021. Rivera Family Holdings LLC is a co-debtor with Manny’s Mexican Cocina, Inc., described above, and previously filed for relief under the Bankruptcy Code in the Western District of October on April 30, 2021, in Case No. 18-11448. Debtor estimates that its total assets and liabilities are between $1,001,001 and $10 million. Debtor does not provide any additional information about specific assets or liabilities. Debtor also does not disclose any income information or a reason for bankruptcy.
Hospitality
Single Asset Real Estate – Duluth, Minnesota / Superior, Wisconsin
In re Home Again Living, LLC (Bankr. W.D. WI); Case No. 1-21-11950-cjf
- On September 20, 2021, Home Again Living, LLC filed for relief under Chapter 11 of the Bankruptcy Code in the Western District of Wisconsin. Home Again Living, LLC reports that its principal place of business is in Duluth, Minnesota. However, it states that it is the 100% owner of real estate located at 10 Belknap Shores, Superior, Wisconsin, which it states has a current value of $398,000. Debtor identifies itself as a single asset real estate business, as defined in 11 U.S.C. §101(51B). Debtor discloses that owes secured creditors $1,013,688.23 and unsecured creditors $90,642.00 Nor does Debtor disclose income information or a reason for bankruptcy.
Inn – Hardy, Virginia
In re Yogi Jay, LLC (Bankr. W.D. VA); Case no. 21-70662
- Yogi Jay, LLC filed for relief under Chapter 11 of the Bankruptcy Code on September 28, 2021, in the Western District of Virginia, Roanoke Division. Yogi Jay, LLC also operating under the name Lake Inn operates an inn located at 45 Enterprise Lane, Hardy, Virginia. Lake Inn does not appear to have a designated website but can be found on third party websites such as TripAdvisor. Information about the property and specific amenities is not available. As part of its first day filings, Debtor attached a Statement of Assets, Liabilities, and Equity for 2020 that discloses $10,866 in cash, a building, assumed to be the inn located at 45 Enterprise Lane, with an estimated value of $575,100, and unidentified land valued at $489,900. In its schedules, the Debtor notes that it owns no real estate, but references “rights to operate/manage motel operations a ‘Lake Inn’ as purchaser pursuant to October 2019 installment land sale contract with Ariyan, LLC. On its Form 204, Debtor discloses unsecured claims totaling $868,448.05. Debtor also discloses a net income of $4,097 for 2020, but does not provide income for any other years. No specific reason for bankruptcy is provided by Debtor.
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.
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