2/28/2022 [Edition 2, Volume 1]
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
Floral Shop – Wheaton, Illinois
In re Andrew’s Garden, Inc. (Bankr. N.D. Ill.); Case No. 22-01249
- Andrew’s Garden. Inc. filed for relief under Chapter 11 of the Bankruptcy Code in the Northern District of Illinois on February 3, 2022. Described on its website as a European-style floral shop and fine gift boutique, Andrew’s Garden sells floral designs for everyday deliveries, weddings, and any special occasion or celebration. In a profit and loss statement for the period January, 2021 through December, 2021, the Debtor discloses total income of $1,266,194.02, total cost of goods sold of $542,404.84, total expenses of $984,743.21 for Net Operating Income of -$260,953.23. In January of 2022, the Debtor’s Net Operating Income was -$11,234.90. The Debtor’s balance sheet for 2021 reveals cash of $3,317.60, accounts receivable of $4,289.18, inventory of $209,028.77, and fixed assets of $99,003.73, for approximate total assets of $324,515.38. Its total liabilities were $604,760.58 for total equity of -$280,245.20.
Single Asset Real Estate Business – Dixmoor, Illinois
In re Prime Group Properties, LLC (Bankr. N.D. IL); Case No. 22-01490
- On February 10, 2022, Prime Group Properties, LLC, filed for relief under Chapter 11 of the Bankruptcy Code in the Northern District of Illinois. Debtor lists its principal place of business as 14127 Leavitt Avenue, Dixmoor, Illinois, but lists 412 Lauder Lane, Inverness, Illinois 60067 as its mailing address. Classifying itself as a single asset real estate business, Debtor estimates that its total assets are worth $500,001 to $1 million. Debtor estimates that its liabilities total between $1,000,001 and $10 million. Disclosed by Debtor are unsecured claims totaling $2,974,420.00, with the Cook County Treasurer along holding a $2,864,420.00 claim. No other information pertaining to assets or liabilities has been disclosed by Debtor, nor has it disclosed financial information or a reason for bankruptcy.
Tree Nursery – Marengo, Illinois
In re Walnut Creek Nursery, Inc. (Bankr. N.D. IL); Case No. 22-80189
- Walnut Creek Nursery filed a voluntary petition under Subchapter V of Chapter 11 on February 23, 2022. The Debtor operates a 260-acre wholesale tree nursery located in Marengo, Illinois. The debtor’s cash collateral budget for the time period between February 18, 2022 and May 13, 2022, reflects “received sales” of $333,020.00. During the same period, its “cash flow” defined as gross profit minus expenses is estimated to be $43,197.00. On its balance sheet, the Debtor discloses a checking/savings balance of ($71,427.79), inventory of $976,350.00, and machinery and equipment of $437,578.00 prior to depreciation. The Debtor’s total current liabilities are $378,868.17 and its long-term liabilities are $2,177,525.32. The Debtor’s list of 20 largest unsecured creditors identifies primarily trade debt.
Indiana
Machine/Tool Shop – Angola, Indiana
In re C&K Enterprises, Inc. (Bankr. N.D. IN); Case No. 22-10143
In re ST Company LLC (Bankr. N.D. IN); Case No. 22-10145
- C&K Enterprises, Inc. and its affiliate ST Company LLC filed for relief under Chapter 11 of the Bankruptcy Code in the Northern District of Indiana on February 25, 2022. C & K operates a facility on real property leased from ST in Angola, Indiana, with machinery and equipment that it owns, subject to security interests granted lenders. A balance sheet filed by the Debtor shows cash in bank of $42,853.88, accounts receivable of $84,859.21, raw materials of $281,850.91, work-in-process of $318,893.96, finished goods valued at $297,841.08, tooling parts valued at $97,062.51, “Parent Shop Equipment” worth $2,113,415.21, “Parent Support Shop Equipment” worth $1,125,483.91, and “Machine Program Software” of $246,177.34. The Debtor’s Statement of Financial Affairs discloses a $2.2 million decrease in gross income between 2020 and 2021.
Wisconsin
Forestry – Minong, Wisconsin
In re Volz Forestry Inc. (Bankr. W.D. WI); Case No. 1-22-10136
- On February 3, 2022, Volz Forestry Inc. filed for relief under Chapter 11 of the Bankruptcy Code in the Western District of Wisconsin. Debtor does not provide information pertaining to its business operations, but classifies itself as falling under NAICS Code 1133, which is used for logging businesses. The Debtor discloses that as of the Petition Date, it had cash or cash equivalents of $7,896.16, accounts receivable of $7,465.00, and equipment worth $629,500.00. Its total liabilities equaled $772,850.89. No financial information or reason for bankruptcy has been disclosed by Debtor.
Hospitality
Macon, Georgia
In re Sangha Hospitality LLC (Bankr. M.D. GA); Case No. 22-50094
- On January 27, 2022, Sangha Hospitality LLC filed for relief under Chapter 11 of the Bankruptcy Code in the Middle District of Georgia. Sangha Hospitality LLC identifies itself as a single asset real estate business as defined in 11 U.S.C. §101(51B). In its bankruptcy schedules, the debtor discloses the existence of furniture, fixtures and equipment worth $2,000,000.00, and real estate where its hotel is located at 108 First Street, Macon, Georgia, worth $14,000,000.00. It Statement of Financial Affairs disclose no gross revenue from operating a business. No income or reason for bankruptcy has been disclosed by Debtor.
Austin, Texas
In re Sky Inn Operation, Inc. (Bankr. W.D. Tx.); Case No. 22-10134
In re Austin Airport Suites, LLC (Bankr. W.D. Tx.); Case No. 22-10135
- On February 28, 2022, Sky Inn Operation, Inc. and its affiliate Austin Airport Suites, LLC filed Chapter 11 petitions. The Debtors do business as Staybridge Suites Austin Airport. Sky Inn Operations owns the real property commonly known as 1611 Airport Commerce Drive, Austin, Texas, from which the Debtors operate a Staybridge Suites hotel. The Debtors estimate they own an interest in real property valued at $17.4 million and personal property with an aggregate value of $822,957.63. The Debtors disclose secured claims with an aggregate value of $9 million and nonpriority unsecured debt in the amount of $818,238.67. The Debtors did not disclose a reason for filing for bankruptcy protection.
San Antonio, Texas
In re MTM Bros, LLC (Bankr. W.D. Tx..); Case No. 22-50189
- On February 22, 2022, MTM Bros, LLC filed a Chapter 11 petition. The Debtor states that it does business as “Red Roof Plus & Suites.” The Debtor does business as Red Roof Plus & Suites. The Debtor does not provide a summary of its financial condition or provide details with respect to its assets, liabilities, or its financial condition. The Debtors did not disclose a reason for filing for bankruptcy protection.
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 Michael Gutting
Matthew Gensburg Sandra Mertens
This information is based upon publicly available information and is intended to provide a brief overview of each opportunity.
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