In re Ameriquest Security Services
Oct 11, 2019OUTCOME: Chapter 11 Plan Confirmed.
On October 11, 2019, I confirmed a plan of reorganization in a Chapter 11 case entitled In re Ameriquest Security Service, Case No.: 2:18-bk-21241-WB. The plan allows the Debtor to settle its general u ... nsecured debt totaling $1,121,506.34 by paying 8 cents on the dollar (7.9% over 5 years). The Debtor filed this Chapter 11 bankruptcy due to several pending stat court wage and hourly class action lawsuits against the Debtor. By filing the Chapter 11 bankruptcy and confirming the plan, the Debtor avoided lengthy and expensive state court litigation and instead continued the operation of its business without any interruption. Large number of businesses targeted by labor law claims have had great success in using the threat or the reality of Chapter 11 bankruptcy filing to greatly reduce the cost of these labor law claims.