6/11/2021 [Edition 1, Volume 3]
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 and Michigan, 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.
Customs Broker – Bensenville, Illinois
In re Freight-Base Services, Inc. and In re Freight-Base Customs Brokers, Inc. (Bankr. N.D. Illinois); Case Nos 21-06990 & 21-06991
- Freight-Base Services, Inc. and Freight-Base Customs Brokers, Inc. both filed for Chapter 11 bankruptcy on June 1, 2021, in the Northern District of Illinois. Freight-Base Customs Brokers the wholly owned subsidiary of Freight-Base Services, Inc. Freight-Based Customs Brokers, Inc. is classified as a Customs Broker and describes itself as a small business debtor as defined in 11 U.S.C. §101(51D). Freight-Base Services, Inc. is, on information and belief, part of the Freight Forwarding Services Industry. Little information has been provided as to either Debtor, but Freight-Based Customs Brokers, Inc. estimates the value of both of its assets and liabilities to be between $100,001 and $500,000. This Debtor also discloses its nine largest creditors with a combined liability of $414,980.60. Debtor did not disclose income or the reason for bankruptcy.
Plumbing Company – O’Fallon, Illinois
In re Spengler Plumbing Company, Inc.. (Bankr. S.D. Illinois); Case no. 21-30409
- Spengler Plumbing filed for Chapter 11 bankruptcy on June 1, 2021 in the Southern District of Illinois. Spengler Plumbing offers plumbing, heating, and cooling services in southern Illinois. Debtor did not disclose specific assets but estimated the value of its assets to be $1,000,001-$10 million. Debtor also estimated the total value of its liabilities to be between $1,000,001 and $10 million, with its twenty largest unsecured creditors having combined claims of $1,688,993.09. Neither income nor the reason for bankruptcy was disclosed by Debtor.
Single Asset Real Estate Business – Chicago, Illinois
In re 5035 N. Lincoln Avenue, LLC (Bankr. N.D. Illinois); Case no. 21-07043
- 5035 N. Lincoln Avenue, LLC filed for Chapter 11 bankruptcy on June 2, 2021, in the Northern District of Illinois. 5035 is a single asset real estate business that owns the commercial property commonly known as: 5035 N. Lincoln Avenue, Chicago, Illinois. Debtor does not provide a specific value for its real or personal property, but estimates the total value of its assets to be $1,000,001 – $10 million. Debtor also estimates the value of its debt to be $1,000,001 – $10 million. No income was disclosed by Debtor, but Debtor does disclose that, in part, the reason for bankruptcy is based on “…the Company’s financial and legal advisors [advice] regarding the liabilities and liquidity situation of the Company, the actions of the Company’s former owners and representatives, the foreclosure action by the Company’s lender, and the strategic alternatives available to the Company.
Freight Shipping and Trucking Company – Chicago, Illinois
In re Chicagoan Logistic Company (Bankr. N.D. Illinois); Case no. 21-07154
- Chicagoan Logistic Company filed for Chapter 11 bankruptcy on Jun 5, 2021, in the Northern District of Illinois. Chicagoan Logistic company is an interstate freight shipping and trucking company that classifies the cargo it hauls as: General Freight, Paper Product, DryBulk, and Beverages. Chicagoan Logistic estimates its total assets to be valued between $500,001 and $1 million and its total liabilities to be between $1,000,001 and $10 million. Debtor does not disclose specific assets, but does disclose its largest creditors who hold $1,854,525.96 of unsecured claims. Debtor’s first day filings did not disclose income or a reason for filing bankruptcy.
Technology Wholesale and Retail Company – Carpentersville, Illinois
In re Sago Technology, Inc. (Bankr. N.D. Illinois); Case no. 21-07313
- Sago Technology, Inc. filed for Chapter 11 bankruptcy on June 10, 2021, in the Northern District of Illinois. Sago Technology’s business includes the wholesale distribution of computers, computer peripheral equipment, and computer software. Debtor estimates the total value of its assets to be between $50,001 and $100,000 and the total value of its liabilities to be $500,001 to $1 million. Debtor does disclose a list of its largest unsecured creditors who hold claims with a combined value of $612,803.91. No income is disclosed by Debtor.
Graceway South Haven, LLC (Bankr. E.D. Michigan); Case No. 21-44888-lsg
- Graceway South Haven, LLC filed for Chapter 11 bankruptcy on June 7, 2021, in the Eastern District of Michigan. Graceway South Haven is a health care business, as defined in 11 U.S.C. §101(27A). Graceway South Haven operated a nursing home under the name Graceway at Countryside, located at 120 Baseline Road South Haven, Michigan, until it voluntarily closed in May 2021. Debtor estimates the value of its assets to be no more than $50,000 while it estimates liabilities of $1,000,001 to $10 million. Income and the reason for bankruptcy were not disclosed by Debtor.
Hotel – Jacksonville, Florida
Omkar Hotels, Inc. (Bankr.M.D.Fla.); Case No. 21-01418
- The Debtor owns and operated a 55-room hotel under the brand Sleep Inn & Suites, located at 6535 Ramona Blvd, Jacksonville, Florida. According to the Debtor’s website, the hotel’s amenities include an outdoor pool and business center. The Debtor disclosed that between January and May, 2021, it had “Total Income” of $493,176.62, “Total Expenses” of $384,573.89 and net income of $108,599.73.
Hotel – Bloomington, Indiana
In re Kinser Group II, LLC (Bankr. D. Ariz.); Case No. 21-04208
- The Debtor owns and operates a 102-room Holiday Inn Express hotel located at 117 S. Franklin Road, Bloomington, Indiana. The Debtor disclosed that as of the Petition Date, the hotel was operated and managed by an affiliate hotel management entity, Tristar Investment Company, L.L.C. According to the Debtor, in addition to offering hotel rooms to the public, the hotel provides hot breakfast and social hour to guests and has a cleaning department, self-serve laundry facilities, a swimming pool and whirlpool, fitness center, internet, a business center, and phone service. According to the Debtor, the occupancy rate for the hotel plummeted during the period from January 2020 through December 2020 (the hotel’s occupancy rate averaged 57.21% during this time) compared to the previous occupancy rate of 80.01% from January 2019 through December 2019. Further, the debtor noted that the hotel’s gross revenue from January 1, 2019 through December 31, 2019 was approximately $3,136,000. For calendar year 2020, the revenue of the hotel fell to approximately $1,978,000, even though January and February 2020 were essentially normal operating months prior to the impact of the pandemic.
Bed and Breakfast – Dillard, Georgia
In re Rabun Manor Resort, LLC (Bankr. N. D. Ga.); Case No. 21-20596
- The Debtor owns and operates a bed & breakfast and 150 seat restaurant facility located at 205 Carolina Street, Dillard, Georgia. The Debtor noted that it has 6 employees who provide services to the facilities’ clients. The Debtor states that its payroll is approximately $3,600.00 paid weekly. Further, it noted that all of its assets have been pledged under that a Promissory Note Agreement in the original principal amount of $675,000.00 and a supporting Security Deed. No other detail on the debtor’s assets or liabilities have been provided.
NOTICE AND DISCLAIMER
The information contained in this article represents summaries of 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