Misery Index: Week of June 19, 2017


Boat Manufacturer Seeks Life Preserver in Bankruptcy Court

Citing lack of sufficient cash to ramp up production above break-even levels, Premier Marine Inc. sought protection from creditors in the District of Minnesota. Signed by President Lori J. Melbostad, the chapter 11 restructuring pleading lists up to $50 million in assets and liabilities. Some $6.5 million is owed to American Bank of the North and the company claims it will not be able to produce sufficient boats to reach profitability without adequate cash, according to court documents.

 Read the declaration of Financial Advisor Richard Gallagher here

Healthcare Facility Operator in Texas Seeks Bankruptcy Protection Again

University General Hospital LLC sought safety in the Northern District of Texas. After initially filing a chapter 11 pleading in 2015 in the Southern District of Texas, the healthcare firm was acquired by Foundation HealthCare in 2016. Signed by manager Richard Zahn, this week’s chapter 11 petition lists up to $50 million in liabilities and $10 million in assets of which a total claim of some $23 million is owed to Cambridge International, which owns and manages medical office buildings at the Texas Medical Center on Fannin Street in Houston.

 Oklahoma Hospital Owner and Operator Buckles Under $5.7 million loan

After acquiring University General Hospital in 2016 for a reported $33 million, Foundation Healthcare Inc. sought protection in the Northern District of Texas. Chairman Richard Zahn signed off on the petition, which listed $10 million in assets and liabilities, of which $5,700,000.00 in loans is owed to Texas Capital Bank.

Embattled Physician’s Real Estate Properties Land in Bankruptcy

PAS Real Estate LLC – 1460 W Larkin located in Elgin, Illinois, and affiliate PAS Real Estate LLC – 308 West New Indian Trail filed chapter 11 pleadings in the Northern District of Illinois. The 1460 W Larkin petition listed up to $1 million in assets and $10 million in liabilities and was signed by managing member Aref Senno, a physician who filed for personal bankruptcy May 8, claiming up to $10 million in assets and liabilities, of which $3,000,000 is owed to BCL Bridge Funding LLC. In 2015, the Appellate Court of Illinois, First District, Second Division, upheld the state Healthcare and Family Services Department’s decision to terminate Dr. Senno’s participation in medical reimbursement programming.

Sandy Survivor Now Faces Bankruptcy Storm

After its Edison, N.J., office was damaged by Sandy, Quantex Laboratories relocated to Cranbury, N.J., where the business landed in U.S. Bankruptcy Court for the District of New Jersey. Signed by CEO James Menoutis, the firm’s chapter 11 petition listed up to $10 million in assets and liabilities, of which $515,000 is owed to Sun National Bank.

 Private Money Lender Seeks Chapter 11 Mercy From Creditors in California Court

PME Mortgage Fund Inc. sought protection from up to $50 million in assets and liabilities in the Central District of California. According to its website, the San Bernardino finance firm enables clients nationwide who have income-producing properties to receive funding in a short period of time.

 Specialty Metals Company Seeks to Tinker Down Debt of $411 Million

Citing an inability to continue servicing their existing debt load without jeopardizing their business, Keystone Tube Co. and four affiliates sought safety from creditors in the District of Delaware. Signed by Treasurer Patrick Anderson, the chapter 11 petition lists up to $500 million in assets and liabilities, of which a $2,466,905.92 inventory claim is owed to Timkensteel Corp. Affiliates include A.M. Castle & Co., Alloy Steels Company, Keystone Service, Inc. and Total Plastics, Inc.

Read declaration of Mr. Anderson here

 Private Real Estate Fund With $325 Million in Lease Assets Fails

Spectrum Alliance LP sought chapter 11 protection in the Eastern District of Pennsylvania. The petition, listing up to $100 million in assets and liabilities, was signed by President James R. Wrigley who is also president of Trefoil Properties, a developer that proposed plans to revitalize the Hillcrest Shopping Center in Lansdale, Pa. Some $9.2 million is owed to a company called APMC in New Hope, Pa.

 Hotel Operator in Missouri Files Chapter 11 Bankruptcy

Colonnade Acquisition LLC, which reportedly operates a hotel located at 245 Jess Jo Parkway in Branson, Missouri, sought protection from up to $10 million in liabilities, of which a $9,500,000.00 disputed claim is owed to Greenlake Real Estate Fund. The chapter 11 petition was filed in the Western District of Missouri and signed by Member Inderjit Grewal, who also signed chapter 11 petitions for Grand Regency Resorts LLC and Celebration Cove Resort LLC in the same court this week.


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