Misery Index: Week of May 1, 2017


Central Grocers Bags Bankruptcy With 11 Affiliates

Central Grocers Inc. sought chapter 11 protection along with 11 affiliates in U.S. Bankruptcy Court for the District of Delaware on May 4. The petition, signed by Chief Restructuring Officer Donald E. Harer, claimed asset and liabilities up to $500 million. The company owes some $3,069,658.20 to Kellogs Sales, $2,357,078.41 to Kraft Foods and $1,965,471.53 to Nestle USA. According to court filings, the company expects to execute a stalking horse agreement and seeks approval of procedures to sell assets, including the Distribution Center and the Strack Stores that are part of the stalking horse bid.

Read the Declaration of Chief Restructuring Officer Harer here.

Bleacher Creatures: All Dolled Up for Bankruptcy Court

Bleacher Creatures LLC, which manufactures caricature dolls of athletes, sought chapter 11 protection in U.S. Bankruptcy Court for the Eastern District of Pennsylvania. The petition was signed by Matthew Hoffman and claims assets and liabilities of up to $10 million. The company reportedly enjoyed partnerships with the National Basketball Association, the National Football League, the National Hockey League and Major League Baseball as well as licensing deals with DC Comics and Warner Bros. According to court filings, the company owes $111,784.20 to Warner Brothers and $332,624.90 to Major League Baseball Properties.

The Commonwealth of Puerto Rico Seeks Shelter in Federal District Court

The Financial Oversight and Management Board for Puerto Rico sought protection from creditors, stating in court documents that filing for bankruptcy is the best way to satisfy creditors. Among the country’s largest creditors is Banco Popular de Puerto Rico, which is owed a bond trustee claim of $12,096, 636,080.00.  A title III petition for covered territories was filed in the U.S. District Court of Puerto Rico on Wednesday, May 3.statement by the oversight board predicted that fiscal distress would worsen due to the elimination of some $850 million in Affordable Care Act funds next year and the exhaustion of all public pension funding.

Read Puerto Rico’s fiscal plan here.

Central Laundry Experiences a Wash After Class Action

A Lansdowne, Pa, laundry business filed its second chapter 11 petition in U.S. Bankruptcy Court for the Eastern District of Pennsylvania. Central Laundry, doing business as Olympic Linen, claimed assets and liabilities up to $10 million. According to court documents, the company is unable to pay its debts as they mature. Affiliate Bellmawr Laundry LLC in New Jersey followed suit. Both petitions are signed by President Georges Rengepes. When the company first filed in 2016, its creditors included TD Bank and Manufacturers and Traders Trust Company and court documents reflect liabilities of only up to $50,000. In 2014, a class action was filed alleging state wage law violations by two of Mr. Rengepes’ former employees.

Read Central Laundry’s Corporate Resolution here.

Read Central Laundry’s first chapter 11 petition here.

Cosmetic Gynecologist Examines Options in Bankruptcy Court

The gynecologist who launched the Vaginal Rejuvenation Institute of Michigan sought chapter 11 protection on Tuesday, May 2, in the U.S. Bankruptcy Court for the Eastern District of Michigan. The petition for Joseph Berenholz, MD, PLLC listed up to $1 million in liabilities and $500,000 in assets. Dr. Berenholz’s principal place of business is listed as Farmington Hills, Mich, According to the company website, Dr. Berenholz performs labioplasty, perineoplasty and other laser procedures for clients as far away as Toronto, Canada. A chapter 11 plan is due by Oct.

Hahn Hotels, LLC Files for Chapter 11 Protection

The sun set on Hahn Hotels when it sought bankruptcy protection in the U.S. Bankruptcy Court for the Eastern District of Texas on Monday, May 1. With assets and liabilities up to $50 million, President Dante Hahn signed the petitions by several affiliates including Hahn Investments, Hahn Hotels of Sulphur Springs, Sleep Inn PropertySI of Longview and Copeland’s of Longview. Other hotels, such as Choice, are among the largest creditors. Mr. Hahn is a businessman who is reportedly based in Longview, Texas.

Allpoints Oilfield Services LLC and Affiliates Spill Into Bankruptcy

Allpoints Oilfield ServicesAFG Louisiana HoldingsAmeriforge Corporation and 16 affiliates lined up for protection from creditors in U.S. Bankruptcy Court for the Southern District of Texas. The petitions, signed by Thomas Giles, list up to $1 billion in liabilities and $50,000 in assets. From 2014 to 2016, the company was impacted by an oversupply of capacity leading to a substantial and rapid decline in oil prices, according to court documents.

Chiksano Management Limited and 16 Affiliates Walk the Bankruptcy Plank

Chiksano Management Limited and 16 affiliates, including Toyama Holdings Limited, filed chapter 11 pleadings in U.S. Bankruptcy Court for the Southern District of New York on Tuesday, May 2. The bankruptcy follows filings by affiliate Nouvelle Foods in March and initial debtor Chinese Fishery Group Limited of Hong Kong last year. Chiksano’s petition, signed by CEO Ng Puay Yee, claims liabilities of up to $10 million and assets up to $50 million.

Read Chinese Fishery Group’s petition here

Read joint administration documents here.

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