Texas power generating and service company Diversified Power Systems, Inc. filed a voluntary petition for Chapter 11 bankruptcy on January 7, 2021, citing at least 14 construction material suppliers and equipment lessors as creditors.
Diversified Power Systems, headquartered in Mansfield, TX, lists their current president and vice president as creditors in the bankruptcy filing with the US Bankruptcy Court for the Northern District of Texas.
The power generating company’s petition for bankruptcy lists the 20 largest unsecured claims, which includes amounts owed to each creditor.
Of the 20 claims listed, a Dallas-based law firm is named with the largest claim, valued just under $104K. The president and vice president’s claim is not listed in the 20 largest unsecured claims. The remaining creditors named in the filing do not include claim amounts.
Within Diversified Power Systems’ Chapter 11 bankruptcy filing, the company reported the following estimates:
- 50 – 99 estimated creditors
- $500,001 – $1 million estimated liabilities
- $100,001 – $500,000 estimated assets
According to the Texas Comptroller of Public Accounts, Diversified Power Systems’ current president is William Bertrand, with Carie Bertrand serving as the vice president.
The company was incorporated in 2004 and their business status is currently listed as “active,” meaning the entity’s right to transact business in the Lone Star State is intact.
A Chapter 11 bankruptcy filing requires the debtor to reorganize their debts, business affairs, and assets. By reorganizing the debt, the indebted entity primes itself to potentially reamurge from the bankruptcy as a health business.
Unless the overseeing bankruptcy court advises otherwise, a Chapter 11 bankruptcy petition must also be filed with “schedules of assets and liabilities, a schedule of current income and expenditures, a schedule of executory contracts and unexpired leases, and a statement of financial affairs.”
14 suppliers & equipment lessors listed as creditors
Of the 14 construction material suppliers and equipment lessors listed as creditors in Diversified Power Systems’ bankruptcy petition, only nine include claim amounts:
- Auto Tech Services
- Avery Oil & Company
- Boxx Modular – $4,559.66
- ComRent International , LLC – $8,969.09
- Cummins Southern Plains, LLC – $19,331.52
- Eaton Corp.
- Holt Texas Ltd. – $30,321.66
- Loftin Equipment – $4,914.19
- MCI Commercial – $7,134.42
- SW Bell Telephone Co.
- W.W. Grainger, Inc.
- Waukesha-Pearce Industries, LLC – $8,887.42
- Wex Fuel Cards – $16,173.68
- Taylor Oil – $7,667.92
Holt Texas’s claim, labeled as an “unknown loan” in the bankruptcy petition, is listed as the fifth-largest claim of the 20 largest unsecured claims named in the filing.
The IRS is listed with the second-largest unsecured claim of the 20 largest claims named in the petition, totaling $79,452 related to form 941 taxes, which is used to “report income taxes, Social Security tax, or Medicare tax withheld from employee’s paychecks and to “pay the employer’s portion of Social Security or Medicare tax.”