With contractors and material suppliers making up 35% of their reported creditors, California electrical contractor Power Up Enterprises, Inc. filed for Chapter 7 bankruptcy on December 13, 2020, according to the US Bankruptcy Court for the Central District of California.
Power Up Enterprises, which is headquartered in Fontana, CA, reported outstanding debt of nearly $1.2 million to 60 creditors, 21 of which are contractors and suppliers.
The electrical contractor also reported in their voluntary petition that they have suffered a 67.3% decrease in gross revenue between 2019 and the date of their filing for bankruptcy.
According to the bankruptcy petition from December of 2020, Power Up Enterprises reported having:
- $1,159,191.94 in total liabilities
- $2,799.90 in total assets
- $162.33 in total checking
- $0 in accounts receivable
From the beginning of the fiscal year in 2020 until the filing date, Power UP Enterprises reported earning $774,416.70 in gross revenue.
One year prior in 2019, the electrical contractor claims they earned $2.36 million in gross revenue. In 2018, Power Up Enterprises reported earning $1.87 million in gross revenue.
The company’s contractor license with California’s Contractors State License Board (CSLB) is current and active until it is set to expire in April of 2021.
What is Chapter 7 bankruptcy?
In order to pay back their creditors, a debtor that files for Chapter 7 bankruptcy must undergo the liquidation of their assets. Priority unsecured debt is paid out first to creditors during a Chapter 7 bankruptcy, followed by secured debt and then nonpriority unsecured debt.
Only a debtor’s nonexempt assets are liquidated to pay back creditors when filing for Chapter 7 bankruptcy. Any nonexempt assets will include property that is not necessary for the debtor to maintain basic standards of living.
Power Up Enterprises lists 60 unsecured claims, no secured claims
At the time of their bankruptcy filing, Power Up Enterprises reported having 60 unsecured claims worth a combined $1,159,191.94.
California’s Construction Laborers Trust Fund is a notable one of the 60 creditors listed in Power Up Enterprises’ bankruptcy filing, with an unsecured claim valued at $16,500.
Power Up Enterprises’ 21 contractor and material supplier creditors include:
- Abraham’s Automotive – $816.07
- Ari Jet Communications – $3,350
- C.A. Rassmussen, Inc. – (no amount listed)
- Crosstown Electrical & Data, Inc. – $1548.73
- C.S. Legacy Construction, Inc. – $5000
- David Brito (Welding Contractor) – $200
- Environmental Construction, Inc. – $818.92
- Fiber Tel Communications – $3,438
- Global Road Sealing, Inc. – $25,000
- Hamel Contractor – $90,000
- Hub Construction Specialties, Inc. – $295.92
- Iteris, Inc. – $52,926
- L.C, Paving & Sealing, Inc. – $15,000
- OneSource Distributors, LLC – $235,000
- Ortiz Tractor and Services – Disputed, exact amount unknown
- PDQ Rentals – $1,591.80
- Turtle & Hughes, Inc. – $8,060.71
- United Site Services – $180
- USS Cal Builder, Inc. – 9,908.85
- Walter’s Wholesale Electric, Inc. – $12,000
- Vance Corporation – $27,000
According to Power Up Enterprises’ official bankruptcy filing, the electrical contractor has no secured claims.
Bankruptcy filing states Power Up Enterprises owes $80,000 in back taxes
Power UP Enterprises’ bankruptcy filing also lists the IRS as a creditor with a priority unsecured claim. According to the filing, the IRS is still owed $80,000 in back taxes from 2013 to 2020.
The California Franchise Tax Board also has a priority unsecured claim with Power Up Enterprises worth $13,500 for payroll taxes in 2019.
On April 30, 2019, Power Up Enterprises was involved in a collections case with the San Bernardino Superior Court. The plaintiff, Elevation Capital, went on to receive a $20,913.32 judgement verdict award in November of 2019.
Dating back to January of 2020, Power Up Enterprises was subject to at least six tax liens from the California Employment Development Department, according to the San Bernardino County clerk’s office. As of Power Up Enterprises’ bankruptcy filing date, all six tax liens have been released.