Misery Index: Week of July 24, 2017


Florida Elder Home Chain Seeks Respite in Bankruptcy Court   

Plagued by multiple lawsuits over the years, Senior Care Group Inc. sought protection from creditors in the Middle District of Florida Tampa Division along with six affiliates including SCG Gracewood LLC, SCG Baywood LLC, Key West Health & Rehabilitation Center LLC and The Bridges Nursing and Rehabilitation LLC. Chairman David R. Vaughan signed the petition, which disclosed up to $10 million in assets and liabilities.

Lights Out for Entity Owing $50 Million to Disgraced Oil Mogul  

Lightray Capital LLC sought bankruptcy protection in the Southern District of Florida. Signed by Ali Farooq, the chapter 11 petition listed up to $500 million in assets and $100 million in liabilities, of which an unliquidated disputed promissory note in the amount of $50,000,000 is owed to Nigerian energy magnate Kolawale Aluko, who is named in a federal money laundering suit, according to the U.S. Department of Justice.

Creditor Files Involuntary Bankruptcy Against Infamous Nigerian

Campion Maverick’s Anjum Mahmood signed a chapter 7 petition claiming $100,000 plus in the Southern District of Florida in the name of Kolawale Aluko, a foreign billionaire who is facing a federal civil complaint filed in Houston that seeks the forfeiture and recovery of some $144 million. Sister involuntary petitions include Earnshaw Associates Limited, a British Virgin Islands Corp. and One57 79 Inc, a New York corporation, both of which are affiliated with Mr. Aluko, according to media reports.

The Party’s Over for St. Louis Event Planner’s Finances

After a trademark and copyright infringement lawsuit, Smarty Had A Party LLC filed a chapter 11 petition in the Eastern District of Missouri to escape from up to $10 million in liabilities. The pleading disclosed that $520,336.57 is owed to party supplier YaYa. Smarty’s federal complaint filed against LinenTablecloth in 2014 was dismissed.

Read Smarty Had a Party’s federal complaint here

Texas Developer’s Shortfall Results in Threat of Foreclosure and Bankruptcy

Macavity Company LLC sought protection from up to $50 million in assets and liabilities, of which $14.5 million is secured debt coming due. Some $2.7 million is unsecured with excessive interest rates and associated fees attached to a residential subdivision called Whitewing Trails under development near Dallas. The real estate company filed a chapter 11 petition in the District of Arizona after one of its holders of secured debt threatened foreclosure of its interest in the housing community.  According to court records, the land is worth $28,000,000.

Read Member Manager Lane Spencer’s declaration here

Long Island Burger Joint Under Fire in Court After Indictment

Chow Down Corp and HVS Enterprise Inc sought protection in the Eastern District of New York. Creditors include McCormick 103 LLC in the amount of $1.4 million for a disputed mortgage claim and $1.8 million owed to Atalaya Asset Income Fund II LP. The chapter 11 petition, citing up to $10 million in liabilities, was signed by President Ruby Singh, who is reportedly married to a Long Island restaurateur indicted in 2015 on federal bribery and fraud charges.

  Used Car Rental Company Faces Breach of Contract Wreckage in Bankruptcy

 After losing a breach of contract claim in June, RENT-A-WRECK OF AMERICA, INC (RAWA) and affiliate Bundy American LLC sought safety from up to $10 million in liabilities in the District of Delaware. The chapter 11 pleading was signed by President James William Cash. On June 29, 2017, the company was ordered to pay some $83,000 to David Schwartz, the originator of the concept of Rent-A-Wreck. According to court records, the litigation has cost RAWA $2,700,000 in attorney’s fees and costs.

 Read about Mr. Schwartz’s lawsuit against RAWA here

After Eviction Lawsuit, Storage Service Confronts Mounting Rent in Court

Trumble & Kocur Storage Co. Inc. claimed up to $10 million in liabilities of which some $290,000.00 is due for rent on property in Geneva, New York. The chapter 11 petition filed in the Western District of New York was signed by President Cindy Gavitt. According to court records, Hanna-Woods Geneva LLC sued Trumble & Kocur Storage Company Inc.

Aluminum Heat Exchange Manufacturer Seeks to Cool Creditors in Bankruptcy Court

Alcoil USA LLC sought protection from up to $10 million in liabilities in the Middle District of Pennsylvania. The petition was signed by President Steve Wand.


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