Jennis Law Bankruptcy News June 14, 2021

Middle and Northern District Filings

June 9, 2021, Sky Steel, Inc. Casselberry, FL, filed voluntary Chapter 11 bankruptcy protection in the Middle District of Florida 6:21bk02638

June 9, 2021, Sage Invent, LLC, Pensacola, FL filed voluntary Chapter 11 bankruptcy protection in the Northern District of Florida 3:21bk30378

June 7, 2021, Wall2Wall Fitness, Inc., St. Petersburg, FL, filed voluntary Chapter 7 bankruptcy protection in the Middle District of Florida 8:21-bk-02980

June 7, 2021, Prime Restoration, LLC, Jacksonville, FL, filed voluntary Chapter 11 bankruptcy protection in the Middle District of Florida 3:21bk01421

Bankruptcy in the News

Mall owner Washington Prime Group files for Chapter 11 bankruptcy protection, citing COVID challenges – USA Today, June 14, 2021. Mall Owner Washington Prime Group, Inc. filed for Chapter 11 protection today. Washington Prime owns Westshore Plaza in Tampa, Orange Park Mall in Jacksonville, Melbourne Square Mall and 10 other malls across Florida. We’re expecting to see many more retail centers filing over the next few months as retail continues to regroup following the pandemic.

Hertz’s Mom-and-Pop Investors Face a Bankruptcy Process Not Designed for Them Hertz – Wall Street Journal, June 9, 2021. Wall Street’s enthusiasm for non-traditional stock opportunities has led many unsophisticated traders into speculation in Hertz Global Holdings Inc., the parent of Hertz Rent-A-Car based outside Ft Myers. As Hertz emerges from its Chapter 11 filing, traders are navigating Plan options that are unfamiliar to casual investors. The shareholders, many of who were Day Traders, ended up with a surprising benefit as Hertz’s prospects rose as the pandemic is lifting.

Concerns Mount Over Looming Surge in Bankruptcy as COVID Medical Debt Soars – Newsweek, June 14, 2021. A March, 2021 Lending Tree survey suggests 12.5 million Americans are struggling with COVID related health bills. While Jennis Law isn’t a consumer bankruptcy firm, we’re watching the underlying health care businesses that are holding much of this debt. There appears to be a game of musical chairs occurring as some institutions received federal funds while others had to do without.

Delaware Case – Hospitality Investors Trust, Inc. (1:21-bk-10831) which filed bankruptcy on May 19, 2021 in Delaware is drawing a lot of scrutiny from activist investor groups alleging fraud. The Jacksonville, FL based Real Estate Investment Trust (REIT) filed a pre-packaged bankruptcy to sell itself to Brook Asset Management Inc. Investors who lost money on the deal are jockeying to prevent the Chapter 11 filing from going forward.