8/25/2021 [Edition 1, Volume 7]

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

Publishing and Advertising Business – Chicago, Illinois

In re Megamedia Enterprises of Illinois, Inc. (Bankr. N.D. Ill); Case No. 21-09060

On July 29, 2021, Megamedia Enterprises of Illinois, Inc. filed for relief under Chapter 11 of the Bankruptcy Code in the Northern District of Illinois. Megamedia Enterprises of Illinois, Inc. is in the publishing and advertising business that offers services including newspaper publishing, advertising, media placement and fulfillment, broadcast advertising, aerial advertising, print advertising, advertising agency services, printing, textbook or research publishing, and author funded publishing services. Debtor has not yet identified its assets, but estimates its assets to have a total value of no more than $50,000. Debtor also estimates its liabilities to be between $100,001 and $500,000, including unsecured claims totaling $121,691.53. No income or reason for bankruptcy was provided by Debtor.

Construction and Management – Plainfield, Illinois

In re C&C Construction and Management LLC (Bankr. N.D. Ill); Case No. 21-09630

On August 17, 2021, C&C Construction and Management LLC filed for relief under Chapter 11 of the Bankruptcy Code in the Northern District of Illinois. C&C Construction and Management LLC claims to be in the business of facility maintenance, roofing and snow removal. The Debtor’s website indicates that it offers services such as: general contracting; building inspection, maintenance planning and repair; snow and ice removal; roof replacement; landscaping; parking lot maintenance; painting; stucco; commercial remodeling; de-imaging; and signage installation, maintenance, and repair. Debtor states that its assets have a total value of $100,001 to $500,000 and estimates its liabilities to be between $1,000,001 and $10 million. Debtor discloses personal property consisting of and valued as follows: bank accounts valued at $5,848.90; security deposits of $7,150.00; accounts receivables booked at $147,705.59; inventory valued at $5,000.00; office furniture and fixtures valued at $4,000.00; 2018 Big Tex Dump Trailer valued at $5,000.00; 2019 Cargo Mate Trailer valued at $3,500.00; 2020 Carry On Utility Trailer valued at $900.00; 2020 Ford F-250 SRW valued at $27,500.00; 2020 Ford F-250 SD valued at $47,400.00; 3 trailers valued at $7,500.00; 3 Boss snow plows and 11 Boss box pushers valued at $25,000.00; 10 Arctic snow pushers valued at $50,000.00; 3 Boss salt spreaders valued at $8,000.00; and other construction equipment and machinery valued at $11,200.00. Debtor also has a judgment against Hughes Maintenance Corporation for breach of contract in the amount of $21,207.00. Debtor discloses the existence of creditors hold secured claims totaling $337,041.47; priority unsecured claims of $6,554.50; and nonpriority unsecured claims of $995,533.00. Debtor alleges it generated gross revenue of $3,051,552.74 for 2021 through the filing date; $4,349,369.00 for 2020; and $2,307,509.00. No reason for bankruptcy was disclosed by Debtor.

Heating & Air Conditioning Business – Willowbrook, Illinois

In re Dane Heating & Air Conditioning, Inc. (Bankr. N.D. Ill); Case No. 21-09701

Dane Heating & Air Conditioning, Inc. filed for relief under Chapter 11 of the Bankruptcy Code in the Northern District of Illinois on August 18, 2021. In bankruptcy pleadings and on its website, Dane Heating & Air Conditioning, Inc. states that it is a heating and air conditioning contractor for residential and commercial customers in the western Chicago suburbs, including: Hinsdale, Westmont, Downers Grove, Lisle, Woodridge, Naperville, Warrenville, La Grange, Oak Brook, Palisades, Lemont, Romeoville, Hickory Hills, Willow Springs, Palos Heights, Palos Hills, Worth, Palos Park, and Brookfield. The Debtor on its website states that the services it offers include heating and air conditioning installation and repair, supplies and parts, air conditioning system cleaning, furnace sales and service, furnace cleaning, dehumidifiers, filters, humidifiers, and radiant heating. Debtor estimates that its assets have a total combined value between $100,002 and $500,000 and estimates that it has liabilities of $500,001-$1 million. Debtor discloses personal property consisting of and valued follows: PNC bank account valued at $5,881.23; accounts receivable booked at $15,000.00; office equipment, including computer and phone, valued at $100.00; tools and equipment related to business operations valued at $10,000.00. Debtor’s secured creditors hold claims totaling $4,664.00, while its unsecured creditors hold claims totaling $658,928.21. Debtor does not disclose any income or reason for filing bankruptcy. The Debtor stated that its gross business income for the previous 12 months was $72,511 and its estimated average future gross monthly income will be $65,000.00. Its total estimated monthly expenses are $61,596.00 resulting in estimated average net monthly income of $3,404.00.

Wisconsin

Single Asset Real Estate Business – Madison, Wisconsin

In re 122 State Street Group, LLC (Bankr. W.D. WI); Case No. 3-21-11567

122 State Street Group, LLC filed for relief under Chapter 11 of the Bankruptcy Code on July 26, 2021, in the Western District of Wisconsin. Little information is available pertaining to 122 State Street Group, LLC’s business operations. However, 122 State Street Group, LLC is listed as the owner of record for the real property commonly known as 122 State Street, Madison, Wisconsin 53703. It states that this real estate is worth approximately $4.5 million at “current vacancies” and approximately $6.0 million “when it becomes fully rented.” Debtor discloses that its largest unsecured creditors hold claims totaling $550,028.08. No reason for bankruptcy or income was disclosed by Debtor.

Dinner Theater and Entertainment Venue – Wisconsin Dells, Wisconsin

In re Palace Theater, LLC (Bankr. W.D. WI); Case No. 3-21-11714

Palace Theater, LLC filed for relief under Chapter 11 of the Bankruptcy Code in the Western District of Wisconsin on August 16, 2021. According to the Debtor’s website, the Palace Theater is a theatre producing classic Broadway productions, children’s theatre shows, and comedy and concerts, with both original and tribute concerts. Its websites states that many of the productions at the Palace Theater are “Dinner & Show” productions offering meals to patrons throughout the show. Debtor estimates its total assets and total liabilities to both be valued between $1,000,001 and $10 million. Debtor discloses personal property consisting of and valued at by Debtor as follows: bank accounts valued at $20,000.00; accounts receivable booked at $1,698,750.63; inventory related to food and beverage operations valued at $42,475.00; and additional kitchen and hospitality equipment and office furniture valued at $225,000.00. Debtor also discloses real property consisting of and valued at by Debtor as follows: the real property commonly known as 564 South Wisconsin Dells Parkway South, Wisconsin Dells, Wisconsin, including a 42,930 square foot commercial building, valued at $7,100,000.00. Debtor discloses combined gross income with 94 North Productions LLC as follows: $422,514.00 for 2021 through August 16, 2021; $294,210.00 for 2020; and $2,518,616.00 for 2019. Debtor states that 94 North, LLC is a sister company that provides production of the acts held in the Palace Theater, and is the owner of production assets such as lighting and sound systems. As of the filing date, there was a foreclosure action pending against Debtor in the Sauk County Circuit Court. No specific reason for bankruptcy was disclosed by Debtor.

Hospitality

Hotel – Guam

In re Beach Resorts, LLC (Dist. Ct. of Guam); Case No. 21-00034

On July 27, 2021, Beach Resorts, LLC d/b/a Hotel Santa Fe Guam, filed fore relief under Chapter 11 of the Bankruptcy Code in the District Court of Guam. Beach Resorts, LLC d/b/a Hotel Santa Fe Guam operates a 106 room beachfront hotel located at 132 Lagoon Drive, Tamuning, Guam, 96913. The hotel has an infinity pool and amenities, such as WiFi access, air conditioning, a business and conference center on site, fitness facilities, indoor and outdoor dining facilities and laundry facilities. Debtor estimates to total value of its assets to be $10,000,001 – $50 million while it estimated to the total value of its liabilities to be $1,000,001 – $10 million. The Balance Sheet Debtor attached to its Petition provides total current assets of only $2,768,779 for 2021 to date. Debtor does disclose that its twenty (20) largest unsecured creditors hold claims totaling $682,409.97. Also provided by Debtor is a Statement of Operations that provides a Net Income of -$1,059,476 for 2019, -$1,338,449 for 2020, and -$356,193 for 2021 to date.

Holiday Inn Express – Carroliton, Texas

In re Precise Hotel Management, LLC (Bankr. N.D. TX); Case No. 21-31413-11

Precise Hotel Management d/b/a Holiday Inn Express Glen Rose Texas filed for relief under Chapter 11 of the Bankruptcy Code in the Northern Dallas Division of Texas on August 2, 2021. Precise Hotel Management, LLC describes itself as a single asset real estate business as defined in 11 U.S.C. §101(51B)). Debtor estimates its assets to have a total value between $100,001 and $500,000, while it estimates its liabilities to be between $1,000,001 and $10 million. Although Debtor discloses no specific assets, it does disclose that its’ principal assets, assumed to be real estate based on Debtor’s self-identified single asset real estate business description, is located at 113 Paluxy Summit Boulevard, Glen Rose Texas. No income or reason for bankruptcy was disclosed by Debtor.

Lodging – Conyers, Georgia

In re Sanam Athens Lodging Inc. (Bankr. N.D. GA); Case No. 21-55769

On August 3, 2021, Sanam Athens Lodging Inc. filed for relief under Chapter 11 of the Bankruptcy Code in the Northern District of Georgia, Atlanta Division. Sanam Athens Lodging Inc., which has also operated under the names Microtel Inn Athens and Sanam Athens Lodging, LLC, is a single asset real estate business as defined in 11 U.S.C. §101(51B)) that operates a lodging establishment located at 1050 Ultimate Drive, Athens, Georgia 30606, which pleadings in the bankruptcy case states has 61-rooms. Debtor disclosed that it previously filed for bankruptcy in the Norther District of Georgia, Athens Division, on March 26, 2019, Case No. 19-54796-WLH. Debtor estimates both its assets and liabilities to be $1,000,001 and $10 million. Debtor’s liabilities include unsecured claims totaling $915,427.73. No income or reason for bankruptcy was disclosed by Debtor.

Park, Camp, Resort – Roberta, Louisiana

In re Mr. Camper, L.L.C. (Bankr. E.D. LA); Case No. 21-11051

On August 11, 2021, Mr. Camper, L.L.C. d/b/a Yogi Bear’s Jellystone Camp Resort filed for relief under Chapter 11 of the Bankruptcy Code in the Eastern District of Louisiana. The debtor states that it owns and operates a Yogi Bear’s Jellystone Campground in Robert, LA. Mr. Camper’s campground is located at 46049 LA-445, Robert, LA 70455. Mr. Camper is a part of the Yogi Bear’s Jellystone Park Camp network of campsites and resorts throughout the United States and Canada. The Debtor’s property is a 100 acres comprising park, campground, and resort that also offers company picnics, reunions, church and scouting groups, daily planned activities from Memorial day through mid-August, and more. The Debtor states that its main source of revenue is renting cabins, tent campsites, and RV sites. The Debtor states that it offers ten cabins and more than 400 tent campsites for its customers. Debtor previously filed for relief under the Bankruptcy Code in the Eastern District of Louisiana on July 1, 2019, case no. 19-11775. Debtor estimates that the total value of its assets and estimated liabilities are between $1,000,001 and $10 million. Debtor’s largest unsecured creditors hold claims totaling $62,958.35.

Inn – Bend, Oregon

In re Shilo Inn, Bend, LLC (Bankr. W.D. WA); Case No. 21-41340-BDL

Shilo Inn, Bend, LLC filed for relief under Chapter 11 of the Bankruptcy Code on August 13, 2021, in the Western District of Washington. Shilo Inn has locations in multiple western states and Texas. According to the Debtor’s website, Shilo Inn, Bend, LLC is a Shilo Inn located at 3105 O. B. Riley, Road, Bend, Oregon, on the banks of the Deschutes River. The Inn is a 151-room/suite, two-story, full-service hotel in Bend, Oregon, on fee title land, operated pursuant to a franchise agreement with Shilo Franchise International and managed by Shilo Management Corporation. The Debtor discloses that the Shilo Bend property has an outdoor pool and spa, indoor pool with sliding open-roof membrane and two spas, and steam and sauna room, exercise fitness center, guest laundry, as well as a free-standing restaurant and lounge and banquet facility, currently seeking a restaurant tenant. The Debtor further disclosed in pleadings that Based on the appraisal report of an MAI certified appraisal in 201,5 the Bend Hotel had a fair market value of $13,500,000. The Debtor estimates its total liabilities to be between $10,000,001 and $50 million. Debtor also discloses that several of its affiliates have pending bankruptcy cases, namely: Shilo Inn, Idoha Falls, LLC filed in the Western District of Washington on November 2, 2020 (case no. 20-42489-BDL); Shilo Inn, Nampa Suites, LLC filed in the Western District of Washington on October 15, 2020 (case no. 20-42349-BDL); Shilo Inn, Ocean Shores, LLC, filed in the Western District of Washington on October 15, 2020 (case no. 20-42348-BDL); and Shilo Inn, Warrenton, LLC, which also filed in the Western District of Washington on August 13, 2021 (case no. 21-41341-MJHDebtor disclosed that its largest unsecured creditors hold claims totaling $33,744.77. The Debtor has stated that the hotel experienced a sudden and sharp decline in hotel revenues due to the Covid-19 global pandemic and unprecedented global recession. Despite the availability of a vaccine, uncertainty with the Covid-19 delta variant has continued to suppress travel demand in the hotel and hospitality sector.

Inn – Warrenton, Oregon

In re Shilo Inn, Warrenton, LLC (Bankr. W.D. WA); Case No. 21-41341-MJH

Shilo Inn, Warrenton, LLC filed for relief under Chapter 11 of the Bankruptcy Code on August 13, 2021, in the Western District of Washington. Shilo Inn, Warrenton, is located at 1609 East Harbor Street, Warrenton, Oregon, and is positioned at the mouth of the Columbia River. Shilo Warrenton operates a 63-all-suites, four-story hotel plus an independent freestanding restaurant that is leased in Warrenton, Oregon, on fee title land, operated pursuant to a franchise agreement with Shilo Franchise International and managed by Shilo Management Corporation. The Shilo Warrenton property has an indoor pool, spa, steam and sauna room, fitness and business center, and meeting room. ). The Debtor states that based on an appraisal report of an MAI certified appraisal in 2015, the Warrenton Hotel had a fair market value of $6,500,000. No specific assets are disclosed by Debtor, but Debtor does disclose its largest unsecured creditors hold claims totaling $16,084.25. The Debtor has stated that the hotel experienced a sudden and sharp decline in hotel revenues due to the Covid-19 global pandemic and unprecedented global recession. Despite the availability of a vaccine, uncertainty with the Covid-19 delta variant has continued to suppress travel demand in the hotel and hospitality sector.

Hotel – Sequim, Washington

In re Wirta Hotels, LLC (Bankr. W.D. WA); Case No. 21-11556

On August 13, 2021, Wirta Hotels, LLC filed for relief under Chapter 11 of the Bankruptcy Code in the Western District of Washington. Wirta Hotels, LLC operates a hotel at Olympic National Park, 134 River Road, Sequim, Washington. The Hotel operates under the “Quality Inn” brand pursuant to a franchise agreement with Choice Hotels International, Inc. (“Choice”). The Hotel has 60 rooms, an indoor pool and hot tub, a fitness room, a business center, a deluxe continental breakfast bar for its guests, and a food pantry. The Hotel also rents conference room space on a consistent basis to various groups. Debtor estimates its assets to have a total combined value of $1,000,001 – $ 10 million, along with liabilities between $1,000,001 and $10 million. Included in Debtor’s first day filings is a balance sheet through June 30, 2021. Debtor discloses personal property consisting of and valued at by Debtor as follows: bank accounts valued at $293,582.21; gift cards valued at $292.56; guest ledger valued at $13,174.51; and guest payments in transits valued at $35,316.74; furniture, fixtures, and equipment valued at $580.857.08; leasehold improvements valued at $22,891.64; receivables booked at $223,145.72; and security deposit valued at $15,075.00. Debtor further discloses that its largest unsecured creditors hold claims totaling $850.770.17. Debtor discloses net income of $16,664.51 for 2021, through June 2021 and net income of -$32,392 for 2020. Like virtually every facet of the hospitality industry across the world, the Hotel has suffered as a result of the COVID-19 pandemic and other exogenous factors (such as related “stay-at-home” orders and the unwillingness of individuals to travel in light of public health issues during the height of the pandemic). These pandemic-related problems caused Debtor to miss payments to its secured creditor.

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.

Gensburg Calandriello & Kanter, P.C. | Attorneys at Law | WWW.GCKLEGAL.COM

Edition 1, Volume 7