July 2023

Vantage appears in bankruptcy court, says it owes customers $80 million

Luxury travel company Vantage Travel Services appeared in U.S. Bankruptcy Court Wednesday after admitting in court documents it owes customers $80 million for future trips.

The company vantage-files-bankruptcy-agrees-sell-united-travel-pte-ltd/BHV7XX47JVA5TJWCZAQG6LBXLM/” data-ylk=”slk:filed for Chapter 11 bankruptcy protection last week;elm:context_link;itc:0″ class=”link “filed for Chapter 11 bankruptcy protection last week and announced it is under an agreement to sell its assets to United Travel Pte. Ltd., an affiliate of Nordic Hamburg and Heritage Expeditions. The deal still needs to be approved by a judge.

In court filings, Vantage attorneys said the company has no cash and terminated all but five of its employees on June 20. The company estimates it owes between 10,000 and 25,000 creditors and has liabilities between $100 million and $500 million, according to court documents.

“As was the case throughout the travel industry, COVID-19 had a substantial impact on the Debtor’s operations,” a Vantage attorney said in a motion filed on June 29.

Vantage has been under fire for months after hundreds of consumers complained about a lack of refunds for cancelled or postponed trips. The Mass. Attorney General’s Office said it has received at least 1,120 consumer complaints against Vantage since January 1, 2020.

“Right now, our

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July 10, 2023 by ATTORNEY

Man gets probation for bankruptcy fraud after hiding ‘Dukes of Hazzard’ car replica from creditors

A Wisconsin man was sentenced to three years probation and a $1,000 fine for bankruptcy fraud Thursday after he tried hiding a pair of vintage cars from his creditors.

Bruce Polczynski, 57, of Minocqua, Wisconsin, lied to a U.S. bankruptcy trustee about the existence of his 1969 Dodge Charger painted to be a replica of the General Lee from the “Dukes of Hazzard” TV show, as well as his 1979 Pontiac Firebird Trans Am.

Polczynski’s deception did not hold up for long, and both vintage cars were seized and sold in order to pay back his creditors. Polczynski pleaded guilty to bankruptcy fraud on March 31.

Prosecutors say that Polczynski‘s story should serve as a deterrent to others trying to get away with bankruptcy fraud.

“Polczynski’s story, where he was quickly stripped of the assets he tried to hide, suffered the embarrassment of federal prosecution, and received a felony conviction, is a compelling cautionary tale for anyone considering bankruptcy fraud,” said U.S. Attorney for the Western District of Wisconsin Timothy O’Shea in a statement.

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July 9, 2023 by ATTORNEY

Vantage files for bankruptcy, Singapore travel company to purchase its assets

“Vantage has sought customary relief from the court to preserve the status quo pending completion of the sale,” said the statement released by the law firm Casner & Edwards LLP.

“Vantage has sought approval to complete the sale promptly, subject to any higher and better offers that may be submitted through the court supervised sale process,” the statement said.

Vantage, founded by Hank Lewis, has been a travel mainstay in Boston for 40 years. In recent years, it has come under fierce and sustained criticism from customers for years-long delays in refunds for canceled trips, some dating back to the beginning of the pandemic.

In April, Vantage customers began publicly complaining about last-minute cancellations of long-planned — and paid for — trips.

Last week, the company laid off an unspecified number of employees, weeks after the company said it was negotiating a sale, according to interviews with multiple laid-off employees and a copy of an internal e-mail.

The statement did not address what the bankruptcy filing and sale of its assets would mean for customers who are owed refunds for canceled trips, and company officials did not immediately respond to a request for comments.

Vantage could owe customers

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July 5, 2023 by ATTORNEY

Serta’s Bankruptcy Court Win Bolsters Future for Favored Lenders

Bankrupt Serta Simmons Bedding LLC’s recent court win for a deal to get a cash infusion from creditors who were then moved up higher in payout priority bolsters other distressed companies’ odds of pursuing the controversial debt restructuring tactic.

The US Bankruptcy Court for the Southern District of Texas’s June decision is the first time a court ruled on the merits on the so-called debt liability management deals that have spurred lender-on-lender disputes, attorneys said.

The issue has come up before, both in and out of bankruptcy cases. But Judge David R. Jones’ opinion in Serta’s Chapter 11 could embolden more companies and lenders to employ the strategy in the estimated $1.4 trillion market for syndicated commercial loans.

“It is somewhat of a momentous ruling,” said Jennifer Taylor, a partner at O’Melveny & Myers LLP.

Among the companies that have similarly controversial debt management deals and sought bankruptcy in Houston are Incora, Diebold Nixdorf, and KKR Co.’s Envision Healthcare Corp.

TPC Group, J. Crew, and Neiman Marcus have also pursued deals and landed in bankruptcy.

Open-Market Purchase

Serta, one of the largest US bedding makers and distributors in North America, filed for Chapter 11 in January with about $1.9 billion

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July 4, 2023 by ATTORNEY

Bitwise Files for Bankruptcy in Delaware Federal Court – GV Wire

In a move anticipated since the financial collapse of the company, Fresno-based Bitwise Industries has filed for bankruptcy.

The Wednesday filing in a Delaware federal court seeks Chapter 7 bankruptcy protection for several Bitwise corporations — BW Industries Inc.; Bitwise Industries, Inc.; BWRD, LLC; Alpha Works Technologies, LLC; and Bruce’s Bagels, Beverages and Bites, LLC.

“The Companies do not have sufficient capital to maintain operations and the impact of the foregoing on such Company’s businesses,” the petition said.

The company lists $253 million in assets, most coming from its main company Bitwise Industries ($212 million).

906 Ventures, LLC, a Denver-based company, is listed as its top creditor at $10 million “plus unliquidated amounts.” The bankruptcy filing also lists 906 Ventures with a $15.5 million claim.

The filing lists accounts in six different banks, all with relatively small balances — none more than $223,000. However, there is an “unknown” balance at Central Valley Community Bank, and a negative balance ($2,700) at First Republic Bank.

On Wednesday, GV Wire reported that federal and state investigators are probing Bitwise’s financial collapse.

Bitwise’s Collapse

The goal of Bitwise, celebrating its 10th year, was to provide high-tech opportunities to underserved communities. Founded by locals Jake

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July 3, 2023 by ATTORNEY
July 2023
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