After reporting a 51.5% decrease in revenue between 2019 and the date of their filing, roofing and storm damage contractor Crown Remodeling declared Chapter 11 bankruptcy on December 10, 2020, according to the company’s petition with the US Bankruptcy Court for the District of Maryland.
Crown Remodeling, which is headquartered in Owings Mills, MD, claims in the bankruptcy filing that they owe $1,219,792 in unsecured claims to 80 creditors — 12 of which are contractors and material suppliers.
The contractor not only operates throughout the state of Maryland, but also in Delaware, Pennsylvania, and Virginia.
At the time of their bankruptcy filing in December of 2020, Crown Remodeling reported having:
- $1,219,792 in total liabilities
- $231,157 in total assets
- $39,677 in total checking
- $16,744 in accounts receivable
From January 1, 2020, until the December 10 bankruptcy filing date, Crown Remodeling reported $1,504,598 in gross revenue, according to the bankruptcy filing.
In 2019, the roofing and storm damage contractor earned $3,103,068 in gross revenue.
Crown Remodeling also claimed earning $4,154,489 in gross revenue in 2018 — signalling a 63.8% decrease in revenue between 2018 and the date of their filing.
Additionally, according to the bankruptcy filing, Crown Remodeling is the defendant in at least nine pending contract disputes being heard by courts in the counties of Baltimore, Montgomery, and Prince George’s.
What is Chapter 11 bankruptcy?
Chapter 11 bankruptcy involves the process of reorganizing a debtor’s assets, business affairs, and debts. As explained by USCourts.gov, the debtor must present a plan of reorganization to their creditors when filing for Chapter 11 bankruptcy, which in turn must be approved by the creditors.
The Internal Revenue Service (IRS) states that Chapter 11 bankruptcy is typically filed by incorporated businesses. If an individual’s debt is beyond the limit for Chapter 13 bankruptcy, which provides adjustments of debt for individuals with regular income, they can then file for Chapter 11 relief.
Debtors under Chapter 11 bankruptcy are granted time to reorganize their finances between their filing date and the bankruptcy court’s confirmation of their debt repayment plan. The debtor must also get their debt repayment plan approved by the bankruptcy court and creditors. If the plan is not approved, the debtor may be forced to file for Chapter 7 bankruptcy, which liquidates assets in order to pay back creditors.
Crown Remodeling’s Chapter 11 bankruptcy filing lists 75 unsecured claims
At the time of their bankruptcy filing, Crown Remodeling reported having 75 unsecured claims worth a combined $861,222.
Of Crown Remodeling’s 75 creditors with unsecured claims, 12 creditors are contractors or material suppliers. Beacon Roofing Supply holds the largest unsecured claim for a promissory note worth $340,000. Other unsecured creditors include:
- Fireside Stone & Patio, Inc. – $4,876
- G & I Contractors, Inc. – $19,105
- HHT J – $8,088
- Home Depot – $4,586
- Iker Construction – $8,020
- J & D Homes Service, Inc. – $44,180
- Lansing Building Products – $31,464
- Mcdowells Complete Chimney – $100
- SRS Distribution – $108,000
- Universal Supply Co. – $50,000
- V & Z Remodeling, Inc. – $9,103
Crown Remodeling’s official bankruptcy filinglists five secured claims worth a combined $358,570.
Two UCC lien claims for working capital from the SBA Office of Disaster Assistance total $229,675. The SBA’s claims are listed as first and second priority.
Libertas Funding holds a 3rd-priority UCC lien worth $83,166.A $41,394 claim from Torro, a financial institution headquartered in Salt Lake City, Utah, is secured by a 4th-priority UCC lien.
Santander Bank also holds a secured claim for a vehicle loan worth $4,335.