12/20/2021 [Edition 1, Volume 10]
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.
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.
Auto Repair – Chicago, Illinois
In re CTM Auto Repair Incorporated (Bankr. N.D. Ill.); Case No. 21-12066
- CTM Auto Repair Incorporated, f/d/b/a Second Chance Auto Sales Inc. and f/d/b/a CTM Auto Repair Clinic Inc., filed for relief under Chapter 11 of the Bankruptcy Code in the Northern District of Illinois on October 22, 2021. CTM Auto Repair Incorporated operates an auto repair shop in Chicago, Illinois. Debtor estimates its assets to be worth no more than $50,000 and its liabilities to be between $100,001 and $500,000. Debtor does estimate, though, that it will have funds available for distribution to unsecured creditors. Debtor does not disclose specific assets or secured claims, but does disclose unsecured claims totaling $195,850.00. The Debtor did not provide income information or reason for filing bankruptcy.
Freight Forwarding and Logistics – Elk Grove Village, Illinois
In re I.C.S. Customs Service Inc. (Bankr. N.D. Ill.); Case No. 21-12153
- On October 25, 2021, I.C.S. Customs Service Inc. filed for relief under Chapter 11 of the Bankruptcy Code in the Northern District Illinois. The Debtor states that it is engaged in business as a freight forwarder, customs brokerage, and handler of international transportation from Asia to Europe and Europe to the United States and that it maintains two locations at 1099 Morse Avenue, Elk Grove Village, Illinois and 9133 S. LaCienega Blvd., #245, Inglewood, CA 90301. It further states that its Chapter 11 filing was triggered by a breakdown of the United States supply chain, which has affected the Debtor’s customers paying in a timely manner and negatively impacted the Debtor’s cash flow. The Debtor’s bankruptcy schedules note that as of its petition date, it held $1,729,757.78 in cash and cash equivalents and $7,471,939.90 in accounts receivable. It also scheduled $284,800 in office furniture, office fixtures and office equipment. The Debtor owns real estate located at 1926 Prairie Square, #109, Schaumburg, Illinois, valued at $115,000. The Debtor’s scheduled liabilities total $6,620.428.74 Debtor does estimate that funds will be available for distribution to unsecured creditors.
Property – Indianapolis, Indiana
In re Broadband Properties Corp. (Bankr. W.D. TN); Case No. 21-10951
- On October 20, 2021, Broadband Properties Corp. filed for relief under Chapter 11 of the Bankruptcy Code in the Western District of Tennessee. Plaintiff’s principal asset and commercial and business activity is a 8.87% membership interest in Rural Connect, LLC. It scheduled liabilities total $240,000. No income has been disclosed nor a reason for bankruptcy.
Transportation – Sugarcreek, Ohio
In re Justin Miller LLC (Bankr. N.D. OH); Case No. 21-61350-rk
- Justin Miller LLC, d/b/a ET Efficient Transportation of Ohio and f/k/a JM Transportation, filed for relief under Chapter 11 of the Bankruptcy Code on October 19, 2021, in the Northern District of Ohio. Justin Miller LLC offers long and short haul transportation of nonperishable commodities. The Debtor disclosed cash and cash equivalents of $12,126.13, accounts receivable of $156,511.00 and trailers valued at $775,703.07. It notes liabilities totaling $1,101,901.46. The Debtor discloses income from services performed between January and October of $4,202,967.53 and net operating income of ($562,944.13).
Restaurant – Mosinee, Wisconsin
In re Two’s Company Restaurant & Lounge, LLC (Bankr. W.D. WI); Case No. 1-21-bk-12177
- Two’s Company Restaurant & Lounge LLC filed for relief under Chapter 11 of the Bankruptcy Code in the Western District of Wisconsin on October 22, 2021. Two’s Company Restaurant & Lounge LLC operates a restaurant offering classic American fare in a lounge/bar and fine dining atmosphere along with catering services. Debtor estimates the total value of its assets it be $100,001 to $500,000 and its liabilities to be between $100,001 and $500,000, with funds available for distribution to unsecured creditors. Debtor discloses and estimates the value of its real property as follows: bank accounts and cash on hand valued at $2,271.96, a $2,500 security deposit, food/beverage and dry goods inventory valued at $30,000; kitchen appliances and fixtures valued at $36,960, and a liquor license with a $7,000 value. Also disclosed by Debtor is the real property commonly known as 213 Main Street, Mosinee, Wisconsin, valued at $124,700 by Debtor based on the 2020 tax bill. The secured creditors listed in Debtor’s Schedule D hold claims totaling $348,170.23, which encumber much of Debtor’s personal and real property. Debtor’s unsecured creditors also hold claims totaling $388,551.16. Several legal actions are currently pending against Debtor with several others recently concluded, creating additional unknown claims against Debtor. For 2021 to date, Debtor lists gross revenue of $499,723.04; gross revenue of $518,458.96 for 2020; and gross revenue of $572,666.00 for 2019.
Hotel – Saint Louis, Missouri
In re Airport Hospitality, LLC (Bankr. E.D. MO); Case No. 21-43925
- Airport Hospitality, LLC filed for relief under Chapter 11 of the Bankruptcy Code in the Eastern District of Missouri on October 26, 2021. Airport Hospitality LLC operates a hotel/motel near Lambert International Airport in St. Louis, Missouri, with an address of 11125 Lone Eagle Drive, Birdgeton, Missouri, flagged as a Sleep Inn and Mainstay Hotel. They schedule this real estate with a value of $4,550,000. The Debtor schedules liabilities of $3,975,041.29.
Hotel – Peachtree Corners, Georgia
In re Norcross Lodging Associates, LLP (Bankr. S.D. IN); Case No. 21-04856-JJG-11
- Norcross Lodging Associates, LLP d/b/a Norcross Inn & Suites filed for relief under Chapter 11 of the Bankruptcy Code in the Southern District of Indiana on October 27, 2021. The Debtor discloses that it is an Indiana limited liability partnership, owns and operates an unflagged, suburban hotel known as the Norcross Inn & Suites built in 1989 on two acres of land in Peachtree Corners, Gwinnett County, Georgia (the “Hotel”). It states that although the Hotel has 118 rooms, only 65 to 70 are currently in a condition to be rented. At any given time, roughly 25 to 30 rooms are occupied and the Debtor’s average occupancy rate over the last 3 months is 40% based on available rooms for rent. The Debtor states that based on current market conditions, the Debtor believes the value of the Hotel is approximately $1,300,000. According to the Inn’s website it offers amenities such as WiFi, an outdoor pool, exercise Room, elevators, and laundry. Debtor previously filed for relief under the Bankruptcy Code in the Southern District of Indiana in 2014 (Case No. 14-00626-JJG-11) and in 2013 (Case No. 13-01829-JKC-11). Debtor estimates the total value of its assets and liabilities to be between $1,000,001 and $10 million and anticipates that funds will be available for distribution to unsecured creditors. Debtor discloses and values its personal property as follows: cash valued at $2,965.00, bank accounts valued at $21,300.94, an unused legal retainer of $2,500.00, accounts receivable booked at $885.00, linen and cleaning supplies for guest rooms valued at $1,300.00, office and guest room furniture and equipment valued at $6,300.00, laundry equipment valued at $34,375.00. Debtor also discloses and values its real property as follows: the real property commonly known as 6650 Bay Circle, Peachtree Corners, Georgia, valued by Debtor at $1,300,000.00. Secured claims totaling $1,532,128.00 are disclosed in Debtor’s schedules, including a $37,955.44 secured by Debtor’s laundry equipment, $1,344,172.56 secured by all of Debtors assets, and a $150,000.00 claim held by the U.S. Small Business Administration secured by all assets. Also disclosed are Debtor’s twenty largest unsecured creditors holding claims totaling $302,214.38. Debtor is currently party to two pending lawsuits, a foreclosure and civil collection in Gwinnett County Superior Court in Lawrenceville, Georgia, and a declaratory judgment action in Fulton County Superior Court in Atlanta, Georgia. For tax year 2019, Debtor discloses gross revenue of $559,050.15; gross revenue of $500,993.23 for tax year 2020; and $415,519.26 of gross revenue for 2021 through the filing date.
Bed & Breakfast – Half Moon Bay, California
In re Princess Port Bed and Breakfast, Inc. (Bankr. N.D. CA); Case No. 21-30727
- On October 27, 2021, Princess Port Bed and Breakfast, Inc. filed for relief under Chapter 11 of the Bankruptcy Code in the Northern District of California. Princess Port Bed and Breakfast, Inc. operated a small bed and breakfast in Half Moon Bay, California. According to Google and Yelp, it appears that the business is permanently closed. Debtor previously filed for relief under the Bankruptcy Code on February 4, 2019, in the Northern District of California – San Francisco (Case No. 19-30118). Debtor estimates the value of its assets to be no more than $50,000, while it estimates its liabilities are between $1,000,001 and $10 million. That said, Debtor does anticipate funds will be available for distribution to unsecured creditors. No specific assets have been disclosed by Debtor, but Debtor does list its largest unsecured creditors which hold claims totaling $1,429,200.00. No income or reason for bankruptcy has been disclosed 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.
This information is based upon publicly available information and is intended to provide a brief overview of each opportunity.
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