2/11/2022 [Edition 1, Volume 12]
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 – Des Plaines, Illinois
MD and SD LLC (Bankr. N.D. Ill.); Case No. 21-14376
- MD and SD LLC filed for relief under Chapter 11 of the Bankruptcy Code on December 20, 2021, in the Northern District of Illinois. Debtor’s principal place of business is located at 1065 Lee Street, Des Plaines, Illinois. No information is provided with respect to Debtor’s business operations. According to a Google search, the business located at 1065 Lee Street is an auto repair shop operating under the name of Midwest Automotive. In its schedules, the Debtor disclosed that it owns a car lift and other fixtures valued at $10,000, and real estate located at 1065 Lee Street, Des Plaines, Illinois, valued at $1,600,000. The Debtor discloses debts totaling approximately $1,304,211.00. The debtor has disclosed no gross revenue from its business.
Auto Repair – Chicago, Illinois
In re CTM Auto Repair Incorporated (Bankr. N.D. IL); Case No. 22-00754
- CTM Auto Repair Incorporated filed for relief under Chapter 11 of the Bankruptcy Code on January 24, 2022 in the Northern District of Illinois. According to the website provided by Debtor, it has operated as an auto repair shop since 2015, providing routine services and more complex repairs, including but not limited to oil changes, tune-ups, wiper blades, engine replacements, tire rotation and replacement, and battery replacement. Debtor previously filed for relief for bankruptcy in the Northern District of Illinois on October 22, 2021 (Case No. 21-12066). Debtor estimates that its assets are worth no more than $50,000. Total liabilities are estimated by Debtor to be between $100,001 and $500,000. No assets have been disclosed by Debtor. However, Debtor does disclose unsecured claims totaling $170,601.00 and that it has no secured creditors. Debtor has also not disclosed any income or reasons for filing for bankruptcy.
Real Estate Investment – Elkhart, Indiana and Chicago, Illinois
In re Ton Real Estate Investments X, LLC (Bankr. N.D. IN); Case No. 22-30056-pes
- On January 25, 2022, Ton Real Estate Investments X, LLC filed for relief under Chapter 11 of the Bankruptcy Code in the Northern District of Indiana. Debtor previously filed on January 24, 2022 (Case No. 22-30052-pes). It is unclear why Debtor refiled. The Debtor states that it owns real estate common known as the Concord Mall, 3701 Main Street, Elkart, Indiana, and values the real estate at $15,000,000. No details pertaining to Debtor’s business operations have been disclosed, but it appears that Debtor is in the business of property management. In its statement of financial affairs, it discloses gross revenue of $1,078,235 on 2020, and $590,275 in 2021. Secured claims totaling $8,386,266.11 are disclosed by Debtor along with unsecured claims of $372,509.32.
Nursing Homes and Assisted Living – Clive, Iowa
In re QHC Facilities, LLC (Bankr. S.D. IA); Case No. 21-01643-als11
- On December 29, 2021, QHC Facilities, LLC, filed for relief under Chapter 11 of the Bankruptcy Code in the Southern District of Iowa. QHC Facilities, LLC classifies itself as a Health Case Business as defined in 11 U.S.C. Section 101(27A), specifically Nursing Case Facilities (NAICS Code 6231). The Debtor has disclosed that it provides skilled nursing, assisted living and complementary and ancillary health care services in the following Iowa counties: Tama, Madison, Humboldt, Jackson, Linn, Webster, and Polk. The QHC Entities have combined approximately 647 beds in the Skilled Nursing Facilities, and approximately 55 units in its two assisted living facilities. According to the website provided by Debtor, it offers a variety of care services at ten (10) facilities throughout Iowa, including: skilled nursing, restorative nursing, respite care, physical therapy, long term care, occupational therapy, hospice care, dementia care, and Alzheimer’s care. Debtor discloses that ten (10) affiliates, which appear to be the ten (10) care facilities, have also filed for bankruptcy in the Southern District of Iowa. Debtor estimates that value of its assets is between $1,000,001 and $10 million, while it estimates that its liabilities are between $10 and $50 million. The only assets disclosed by Debtor are bank accounts valued at $1,009,701.31. Debtor discloses no other personal property and no real property. That said, Debtor discloses $26,201,196.01 of secured claims and $169,771.83 of unsecured claims. The majority of the secured claims are classified by Debtor as “blanket liens” with no further explanation. Debtor also has several unexpired contracts and leases, including a lease of office space located at 8350 Hickman Road, Suite 15, Clive, IA; a lease finance agreement; and a subscription service agreement for an electronic patient/client records platform. On its statement of financial affairs, Debtor discloses gross revenue of $1,230,858.00 for 2019 and $539,566.00 for 2020. Debtor lists gross revenue as “unknown” for 2021 through the filing date. Two legal cases are currently pending against Debtor in the Polk County Court. One negligence case and one breach of contract/debt collection case.
Sports Bar – Green Bay, Wisconsin
In re Duel Sports Bar, LLC (Bankr. E.D. WI); Case No. 22-20107-kmp
- On January 13, 2022, Duel Sports Bar, LLC filed for relief under Chapter 11 of the Bankruptcy Code in the Eastern District of Wisconsin. Debtor does not detail its business operations, but does disclose that it has only been in operation for a little more than one year. The Debtor has scheduled an average inventory of food and liquor of $35,000 and leasehold improvements of $309,438. It discloses total liabilities of $119,578. No balance sheet, statement of operations, or cash-flow statement has been prepared and Debtor advises that the 2020 federal income tax returns have not been completed.
Logging Contractor – Tony, Wisconsin
In re Franzen Forest Products, Inc. (Bankr. W.D. WI); Case No. 1-21-12579-cjf
- Franzen Forest Products, Inc. filed for relief under Chapter 11 of the Bankruptcy Code in the Western District of Wisconsin on December 30, 2021. Debtor does not provide much information with respect to its business operations, but classifies itself under NAICS code 1133, logging. The Debtor has scheduled machinery, fixtures and equipment with a total value of $628,800. It states that it has bonds valued at $54,536. It owns no real estate. The Debtor has schedule secured debt of $466,000 and general unsecured debt of $95,245.
Hotel – Austin, Texas
In re Advantage Hotels, Inc. (Bankr. W.D. TX); Case No. 21-10990-tmd
- On December 23, 2021, Advantage Hotels, Inc. filed for relief under Chapter 11 of the Bankruptcy Code in the Western District of Texas. Advantage Hotels, Inc. states that it owns and operates a franchise service organization, offering franchisees the license and support services necessary to own, manage, and operate Vista and Select Inn properties. The debtor’s brands include Vista Hotels, Select Inns, Vista Inns, Vista Inn & Suites, and Vista Rez Independent Collection. The Debtor stated that due to the disruption to travel and the hospitality industry caused by the COVID19 pandemic, it has faced significant cash flow issues prompting it to seek protection under the Bankruptcy Code. The Debtor has scheduled assets with a total value of $1.122.75, and liabilities totaling $400,839. In its Statement of Financial Affairs, the Debtor states that it earned no revenue in 2021, and earned gross revenue of 4141,994 and $105,813 IN 2020 and 2019, respectively.
Lodging / Resort – Biglerville, Pennsylvania
In re Paint the Wind, LLC (Bankr. M.D. PA); Case No. 1:22-bk-00078-HWV
On January 19, 2022, Paint the Wind, LLC d/b/a The Generals Mountain Lodge of Gettysburg filed for relief under Chapter 11 of the Bankruptcy Code in the Middle District of Pennsylvania. Debtor previously filed for bankruptcy in the Middle District of Pennsylvania on August 31, 2020 (Case No. 1:20-bk-02604). The Debtor states that at the time of the bankruptcy petition, it was the owner a 634-acre parcel of real located at 1207 Flohrs Church Road, Biglerville, Pennsylvania 17307. Per Debtor’s Schedules, as of the date of the Petition Debtor owned certain tangible assets consisting of $40.00 in cash, real property worth approximately $12,000,000.00 and approximately $300,000.00 worth of commercial kitchen equipment. A search of the property provides that it is resort hotel property that includes conference, events, resort, living, and agricultural areas. It is unclear if Debtor’s business is currently operational. At this time it is unclear what Debtor’s reason is for filing for bankruptcy.
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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