Misery Index: Week of June 26, 2017


After Massive Auto Recall, Air Bag Supplier Plunges into Bankruptcy

Citing the largest product recall in U.S. automotive history, TK Holdings, Takata Americas and some 10 affiliates sought protection from creditors in the District of Delaware. Signed by Secretary Ken Bowling, the petition listed up to $10 billion in assets and $50 billion in liabilities, including $180 million owed in fines and penalties to the National Highway Traffic Safety Administration and an undetermined amount of money to automakers such as Honda, Toyota, Mazda, Nissan, BMW and Ford. According to court records, Takata has experienced financial distress due to issues relating to airbag inflators that ruptured during deployment.

 Read the declaration of TK Holdings Executive Vice President and Chief Operating Officer Scott E. Claudill here

O.J. Simpson Attorney Files Chapter 13 Pleading Over IRS and Mortgage Debt

A year after finishing a personal financial management course to complete his June 2016 chapter 7 pleading Francis Lee Bailey, also known as F. Lee Bailey, filed for bankruptcy again in the District of Maine, this time in a chapter 13 petition listing up to $10 million in liabilities and $500,000 in assets. Creditors include the IRS and Wells Fargo Home Mortgage, to whom Mr. Bailey owes $5,198,930.92 and $364,925.00, respectively, according to court documents. Mr. Bailey was among the attorneys who defended Mr. Simpson, who was acquitted of allegations that he murdered his ex-wife Nicole Brown Simpson and her friend Ronald Goldman. Mr. Bailey was subsequently disbarred in 2001 over shares of stock that the IRS said the attorney failed to report fully as income. As a result, the IRS filed $4.5 million in liens against the famed lawyer.

 Truck Dealer Flees Creditors After Allegations of Sexual Harassment Against CFO

Following a lawsuit filed in January alleging sexual harassment of a former employee, National Truck Funding and affiliate American Truck Group sought chapter 11 protection in the Southern District of Mississippi. The petition, signed by manager Louis J. Normand,  listed up to $10 million in assets and liabilities. Alan Walls, CFO, blamed a severe downturn in the trucking industry and declining prices of used trucks. However, the pleading also listed several lawsuits as contingent disputed claims including one for trade practices.

Read Quigley v National Funding complaint here

Read declaration of CFO Alan Walls here

 Maryland Steak ‘n Shake Grilled in Bankruptcy Court

8100 Veterans SNS LLC, located at 8100 Veterans Highway in Millersville, Maryland, sought chapter 11 safety from creditors. Signed by Member Khalil Ahmad, the petition lists up to $10 million in assets and liabilities and disclosed $3,434,967.95 is owed to BankUnited NA for a trust deed on the building, which is reportedly owned by Mr. Ahmad. Creditors also include Meir Duke, a convicted drug trafficker who sued Mr. Ahmad and secured a confessed judgment, according to court records.

  Web of Medical Firms Walk Bankruptcy Plank

Advanced Pain Surgery Center LLC followed affiliates Advanced Anesthesiology Associates LLCAmerican Spine Surgery Center LLC and Advanced Pain Management Services into bankruptcy court in the District of Maryland. The petition, signed by CEO Khalid Kahloon, claimed up to $10 million in liabilities, of which $1,708,642.53 is owed to Sun Trust bank. Advanced Pain Management Services and Advanced Anesthesiology Associates were named in a 2011 lawsuit alleging they submitted improper claims to the federal government by way of Medicare and Medicare carriers.

 Read about Hein v. Advanced Pain Management Services, LLC et al here

 Connecticut Real Estate Company  Seeks Safe Harbor in Bankruptcy

Harborside Associates LLC sought chapter 11 protection in the U.S. Bankruptcy Court for the District of Connecticut some 18 months after affiliate Continuity LLC. Signed by Luciano Coletta, both petitions listed up to $10 million in liabilities, of which a $1.2 million disputed judgment in foreclosure is owed to The Salce Companies.

 Read The Salce Companies statement here


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