Schafer and Weiner, PLLC Confirms Subchapter V Chapter 11 for Grand Rapids Restaurant
Joseph Grekin and John Stockdale, Jr. assisted a pair of debtors operating a tiki-themed restaurant in Grand Rapids, Michigan in confirming a subchapter V plan of reorganization in In re Authentiki, LLC, et al., Case No. 20-03322-jwb (Bankr. W.D. Mich.). A subchapter V chapter 11 case is available to debtors having aggregate non-contingent liabilities below $7.5 million and allows the debtor’s equity holders to continue with the business notwithstanding the “absolute priority rule.” Through the confirmed plan, the jointly administered Debtors were substantively consolidated and the unsecured creditors are expected to recover approximately 52% on the face amount of their claims. Joe and John’s efforts preserved a niche restaurant during the COVID-19 crisis saving 52 jobs – Mai Tai’s all around.