Misery Index: Week of July 17, 2017


Hotel Checks Into Bankruptcy Court After SBA Loan Default

ASA Lodging LLC is seeking a reprieve from $10 million in liabilities in the Northern District of Indiana of which $2 million is a lien owed to First Citizens Bank. The Chapter 11 pleading was signed by Jagtar Otal, who filed for personal bankruptcy in June after being sued jointly in the U.S. District Court for the Northern District of California for allegedly defaulting on Small Business Administration loans in the amount of $981,249.23, $1,294,577.04 and $1,252,674.84. Mr. Otal was also named in a federal complaint filed in March 2017 against Guru Lodging LLC in March by Choice Hotels International Inc in the U.S. District Court of Maryland.

Waste-to-Energy Contractor Looks to Dispose of Debt in Bankruptcy Court

Energy3 LLC sought protection in the Southern District of Florida. The chapter 11 petition was signed by CEO Fred R. Deluca and listed up to $10 million in liabilities, of which $377,873.66 is owed to Eco-Tech Solutions Inc. as part of a final summary judgment.

Charter Airline Skids Into Bankruptcy After $10.5 Million Arbitration Award

Following litigation, Dynamic International Airways sought protection in the Middle District of North Carolina Greensboro Division. CEO Paul Kraus signed the chapter 11 pleading, which listed up to $100 million in liabilities, of which $10.5 million is owed to Air India for a disputed arbitration award and $3.8 million is owed to BKP Enterprises for failing to pay flight commissions, according to a statement online. “Operating under the protection of the US Bankruptcy Court will enable us to continue to serve our customers, keep our team employed and work with our vendors while we navigate through the challenges presented,” said Mr. Kraus.

Connecticut Property Developer Faces Multimillion-Dollar Judgment

After a judgment of $3.5 million was issued in favor of a condominium association that sued the Anchor Reef Club at Branford LLC over construction defects, the property developer filed for bankruptcy in the District of Connecticut. The Anchor Reef Club at Branford pleading, signed by Albert Nassi, listed up to $50 million in liabilities and $10 million in assets.

Medical Tech Firm Undergoes Bankruptcy Surgery

Software company MedaPoint Inc. sought a safe haven from up to $10 million in liabilities in the Western District of Texas. President, CEO and Director Eric Becker signed off on the pleading, which listed up to $10 million in assets. Some $400,000 each is owed to LogicWorks Systems and Micro World for goods and services rendered and $600,000 to Microsoft Licensing in a disputed claim.

California Care Center Faces Multiple Lawsuits in Bankruptcy Court

After two medical malpractice suits, an employee disability discrimination complaint and a breach of contract claim, Avalon Care Center-Chowchilla LLC sought protection from up to $10 million in liabilities in the Eastern District of California. Signed by CFO Anne Stuart, the pleading listed up to $500,000 in assets.

Building Services Company in Florida Mowed Down by Debt

Go Lawn Inc. sought protection from creditors in the Middle District of Florida. Signed by President Howard Schwartz, the petition lists up to $1 million in assets and $10 million in liabilities of which $1,404,728.92 is owed to First National Yadkin Bank that was used for ongoing business operations, according to court documents.

Specialty Pharmacy in Illinois Seeks Cure for Tax Debt

Preckshot Professional Pharmacy claimed up to $10 million in assets and liabilities in its pleading filed with the Central District of Illinois. The compounding facility owes an undisclosed amount of money to the Illinois Department of Revenue and the IRS as well as $168,936.82 to United Community Bank.  Also known as Central Illinois Compounding Inc., the chapter 11 petition was signed by President Jennifer Siefert.


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