With two active unpaid construction work claims still placed on their property in Jacksonville, Florida, apartment complex owner Jax Avalon — doing business as Avalon Hill — filed for a voluntary petition for relief under Chapter 11 bankruptcy on December 8, 2020.
Jax Avalon, which is located in Jacksonville as well as East Greenwich, Rhode Island, filed for Chapter 11 relief with the US Bankruptcy Court for the Middle District of Florida.
Within the company’s bankruptcy filing is a list of at least 10 creditors, one of which is subcontractor All Pro Asphalt of Jacksonville.
The subcontractor still holds an active unpaid construction work claim — known as a mechanics lien — against the Avalon Hill apartment complex in Jacksonville.
Jax Avalon’s Avalon Hill apartment complex in Jacksonville houses 201 units, according to the apartment’s Realtor listing.
The listing also states the property was last sold for $10,750,000 in 2018, has a total of 19,746 square feet of space, and spans 11 acres.
Furthermore, the complex faced 10 open code enforcement cases in 2019 for unsanitary conditions after residents complained of mold, mildew, and bug infestations in the units.
At the time of their bankruptcy filing in December of 2020, Jax Avalon reported having the following estimates:
- 1 – 49 estimated creditors
- $10,000,001 – $50 million in estimated liabilities
- $1,000,001 – $10 million in estimated assets
What is Chapter 11 bankruptcy?
When filing for Chapter 11 bankruptcy relief, a debtor can remain in control of their business operations, but they will act as a “debtor in possession,” as explained by USCourts.gov.
Chapter 11 Bankruptcy is considered “reorganization bankruptcy” because the debtor’s business affairs, debts, and assets are all reorganized. This process of reorganization is mandated by the bankruptcy court and the debtor’s creditors, which require the debtor to draft a plan of reorganization.
If the debtor does not create a plan for themselves, the creditors are authorized to draft the plan. However, the plan must be confirmed by the court. Once the plan is confirmed, it then must be agreed upon between major stakeholders, creditors, and the debtor themself.
Overall, USCourts.gov explains the following three common types of possible outcomes when filing for Chapter 11 bankruptcy:
- Reorganization of their business affairs, debts, and assets
- Conversion to Chapter 7 bankruptcy (liquidation of the debtor’s assets)
- Case is dismissed
Jax Avalon faces active mechanics liens amid bankruptcy filing
Subcontractor All Pro Asphalt is one of two subcontractors that still have active mechanics lien claims placed on Jax Avalon’s apartment complex in Jacksonville.
The two active lien claims are worth a combined $9,821.88.
Aside from All Pro Asphalt’s lien worth $5,889.38 from April 30, 2019, subcontractor Morris & Kids Plumbing also claims they are owed $3,932.50 from construction at the Avalon Hill apartment complex, according to the Duval County clerk’s office.
In April of 2020, one year after filing their mechanics lien against Jax Avalon’s property, subcontractor All Pro Asphalt filed a complaint with the Fourth Judicial Circuit for Duval County against Jax Avalon.
According to court records, the complaint was filed to foreclose the mechanics lien, which is the process of enforcing the unpaid work claim with a lawsuit filing.
10 code enforcement cases for unsanitary conditions filed in 2019
In August of 2019, a Jacksonville CBS and FOX affiliate reported that residents of the Avalon Hill apartments were living in “unsanitary conditions.”
According to the report, Jax Avalon was notified of the concerns as of August 2019, but the property owner did not provide a timeline for resolving the hazardous conditions, which include the presence of mold and mildew as well as bug infestations.
One resident of the apartment complex told the CBS and FOX affiliate in 2019:
“There’s been standing water at the bottom of our stairwell, probably two inches of what appears to be sewage water. It’s horrendous. It’s stinking up the stairwells. It’s starting to stink up the apartments and even in my own apartment.”