On May 19, 2021, Hospitality Investors Trust Operating Partnership, L.P., a New York-based hotel industry real estate investment trust, severely impacted by the Covid-19 related travel drop-offs, along with affiliate Hospitality Investors Trust, Inc., filed a petition under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 21-10830).
On May 14, 2021, Gateway Kensington LLC, filed a petition under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of New York (Case No. 21-22274).
Lenders often require their borrowers to be “special purpose entities” in real estate transactions. This is a way that lenders can mitigate their bankruptcy risk in the event that the borrower or any of its parent entities file for bankruptcy. In addition, since most real estate financing is non-recourse, lenders require that the borrower is a separate, special purpose entity so that no other property or business will impact the property which is the subject of the underlying loan.
On April 26, 2021, Royal Blue Realty Holdings, Inc., a New York-based real estate company, filed a petition under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of New York (Case No. 21-10802). The company reports $1 million to $10 million in assets and $10 million to $50 million in liabilities.
On April 25, 2021, Secure Home Holdings LLC and various affiliates, which provide home security services and smart home automation to residential and small business customers, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 21-10745). The company reports $100 million to $500 million in both assets liabilities.
On April 24, 2021, New York-based beachwear retailer L&L Wings, Inc., which operates 26 stores in the Carolinas, Florida, Texas and California, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of New York (Case No. 21-10795).
On April 24, 2021, Augustus Intelligence Inc., a New York based AI systems developer, filed a petition under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 21-10744). The company reports $10 million to $50 million in assets and $1 million to $10 million in liabilities.
Late on April 20, 2021, Texas-based WB Supply LLC, one of the largest privately held pipe and supply companies in the United States, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 21-10729). The company reports $10 million to $50 million in both assets and liabilities.
Late on April 19, 2021, Wilmington, Del.-based non-profit Connections Community Support Programs, Inc. (“CCSP”), which provides psychiatric/behavioral health services, substance use disorder treatment, housing and veterans’ services, intellectual disabilities services and operation support services, filed a petition under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 21-10723).
On April 12, 2021, Automotores Gildemeister SpA of Santiago, Chile filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of New York (Case No. 21-10685) along with several affiliates. The corporate minutes accompanying the petition indicate that the company contemplates a prepackaged chapter 11 filing.