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Thursday, January 7, 2021

Welcome to the Bankruptcy
Today Newsletter.

Your daily access to recent significant Chapter 11 case filings, relevant restructuring news and samples of some of our current distressed company profiles.

Featured Recent Filings

CourtFiledDebtorCase NoAttorneyAssetsLiabilities
S.D.N.Y.1/6/2021Mifate Cab Corp.21-10018Thomas A. Farinella$50k - $100k$500k - $1M
E.D.N.Y.1/6/2021Powell 512, LLC21-40032Charles Higgs$500k - $1M$1M - $10M
S.D.N.Y.1/6/2021Shelburne Bar & Grill Inc.21-10014Rachel S. Blumenfeld, Esq.$100k - $500k$100k - $500k
C.D. Cal.1/6/2021DGWB Ventures, LLC, a California limited liability company21-10017Michael B. Reynolds$1M - $10M$1M - $10M
C.D. Cal.1/6/2021Presidio Development, LLC21-10086Michael Jay Berger$500k - $1M$100k - $500k
S.D. Tex.1/6/2021Third Ocean Vessel and Rig, Inc.21-80004Pro Se$0 - $50k$500k - $1M
E.D. Mich.1/6/2021Loves Furniture Inc.21-40083Max J. Newman$10M - $50M$10M - $50M
D.N.J.1/6/2021GFY REALTY CORPORATION21-10078Dean Despotovich$1M - $10M$500k - $1M
E.D. Pa.1/6/2021Cantwelll Woodworking, LLC21-10031Jon M. Adelstein$500k - $1M$500k - $1M
E.D. Wash.1/6/2021C&V Auto Sales & Service, Inc.21-00013Dan O'Rourke$1M - $10M$1M - $10M
C.D. Cal.1/5/2021JANA, LLC21-10005Matthew Abbassi$0 - $50k$0 - $50k
C.D. Cal.1/5/2021Save On Cost Manufacturing, LLC21-10057Raymond H. Aver$1M - $10M$1M - $10M
D. Mass.1/5/2021Community Intervention Services Holdings, Inc.21-40003Michael J. Goldberg$10M - $50M$100M - $500M
D. Mass.1/5/2021Community Intervention Services, Inc.21-40002Michael J. Goldberg$10M - $50M$100M - $500M
D. Mass.1/5/2021Futures Behavior Therapy Center, LLC21-40005Michael J. Goldberg$500k - $1M$50M - $100M
D. Mass.1/5/2021South Bay Mental Health Center, Inc.21-40004Michael J. Goldberg$10M - $50M$100M - $500M
D.N.J.1/5/2021LAN Doctors, Inc.21-10041Timothy P. Neumann Esq$0 - $50k$100k - $500k
W.D. Pa.1/5/2021Salem Consumer Square OH LLC21-20020Kirk B. Burkley$1M - $10M$1M - $10M
N.D. Ind.1/5/2021M&M Management Company, LLC21-20004Daniel L. Freeland$500k - $1M$1M - $10M
W.D. La.1/5/2021Flow Services and Consulting Inc.21-50005Bradley L. Drell$1M - $10M$1M - $10M

View All Filings
Featured Article

In re Buffets: A Fees-t for the United States Trustee

The vacations got here early for america Trustee (the “U.S. Trustee”) on November, 3, 2020, when a three-judge panel of america Circuit Court docket for the Fifth Circuit, on direct enchantment, reversed the chapter courtroom and upheld the constitutionality of a 2017 improve to quarterly charges payable to the U.S. Trustee in Hobbs v. Buffets LLC (In re Buffets LLC), No. 19-50765, 2020 U.S. App. LEXIS 34866 (fifth Cir. Nov. 3, 2020). Though the Fifth Circuit’s opinion addresses a wide range of constitutional challenges to the current improve to U.S. Trustee charges, the “the primary occasion” was “whether or not [the] charge improve violates constitutional uniformity necessities.” Id. at *16. The courtroom’s 2-1 resolution, discovering no constitutional infirmity with the charge improve, widens the break up in authority on the problem. To that finish, it likewise sows additional uncertainty with respect to the continued viability of a decades-old “twin system:” with nearly all of jurisdictions working below america Trustee Program and a small minority utilizing Chapter Directors.

The Appetizer: Background on U.S. Trustee Charges

As a consequence of working in chapter, even after a chapter 11 plan is confirmed, part 1930 of title 28 of america Code imposes a quarterly charge, which quantity depends upon the worth of “disbursements” made by the debtor entity through the relevant quarter. See 28 U.S.C. § 1930(a)(6). Previous to 2017, $30,000 was the utmost quarterly charge for a chapter 11 debtor. See § 1930(a)(6)(A). However in 2017, Congress amended the statute to fund a funds shortfall—which gives that, throughout fiscal years 2018–2022, (i) “if the steadiness in america Trustee System Fund . . . is lower than $200,000,000,” (ii) and a debtor has disbursements exceeding $1 million per quarter, then the debtor’s most quarterly U.S. Trustee charges are the lesser of $250,000 or 1% of complete disbursements. § 1930(a)(6)(B). As a result of the U.S. Trustee System Fund was and continues to be below the statutory threshold, the modification introduced an 833% improve in most quarterly charges beginning in 2018. This set off alarm bells for debtors that filed chapter 11 earlier than the 2017 amendments however have been caught in chapter 11 after the rise. 28 U.S.C. § 1930(a)(6)(B).

Read the full article

Legal Daily World by Candace Arthur and Alex Cohen. Published January 5, 2021.

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