Following a 41% decrease in gross revenue, New York home improvement contractor R. Edge Contracting declared Chapter 11 bankruptcy on January 13, 2021, according to the US Bankruptcy Court for the Southern District of New York.
The contractor claims in their voluntary petition for bankruptcy that they owe at least $4 million to 38 creditors — two of which hold secured claims.
A total of 22 creditors are contractors, material suppliers, and equipment lessors with nonpriority unsecured claims. David Schaffer, the company’s vice president, holds a nonpriority unsecured claim worth $156,249.
In 2019, R. Edge Contracting reported $5,177,180 in gross revenue, according to the bankruptcy partition. At the end of 2020, the contractor’s gross revenue had fallen by $2.1 million.
The company reportedly received a $126,000 SBA Paycheck Protection Protection (PPP) loan through JPMorgan Chase Bank in April of 2020.
Located 30 miles north of New York City in Tarrytown, NY, R. Edge Contracting became a limited liability company (LLC) in October 2013.
Within their bankruptcy filing from January 2021, R. Edge Contracting reported the following totals:
- $4,034,151.05 in total liabilities
- $2,625,422 in total assets
- $0 in total checking
- $2,529,884 in accounts receivable
A debtor that files for Chapter 11 bankruptcy relief is required to create a plan of reorganization in order to restructure debts, keep the business alive, and to pay back creditors over time. The plan of reorganization must be in the best interest of the creditors and not the debtor.
Creditors with secured debts typically receive first priority during the repayment process. Once secured claims are paid for, any remaining funds can be disbursed to creditors with unsecured claims — beginning with priority unsecured, followed by nonpriority unsecured.
Two secured claims, 36 unsecured claims
At the time of their bankruptcy filing, R. Edge Contracting reported having two secured claims worth a combined $55,562.
Chase Bank is named as a secured creditor for a “lien on debtor’s assets” with an unknown claim value.
Rhinebeck Savings Bank of Poughkeepsie, NY holds the secured claim worth $55,562 for a motor vehicle lien attached to a 2019 Dodge Ram pick-up truck.
The 36 nonpriority unsecured claims are worth a combined $3,978,589.05.
Of the 22 contractors, suppliers, and equipment lessors listed as nonpriority unsecured creditors, United Rentals holds the largest claim at $262,000 for trade debts incurred in 2020.
The remaining 21 contractors, suppliers, and equipment lessors named in the petition include:
- Admar Rentals – $76,624
- AWG Wire – $220,000
- Barney and Dickenson (concrete supplier) – $29,792
- Champion Wire – $8,882
- City Electric Supply – $3,088.80
- Concrete Cutting Company – $6,000
- D&R Construction – $14,700
- Daniel Prokopy (contractor) – $45,000
- Fastenal – $15,029
- Graybar – $32,602
- Green Mountain Electric Supply – $35,507
- Miller and Miller – $19,000
- O Tooles Sand and Gravel – $13,769
- Rentals to Go – $37,085
- Rogers Crane – $2,885
- Staffworks – $5,413
- Superior Fuel – $3,330
- Talent Corp – $128,884
- Taylor Garbage – $10,109
- Total Electric – $97,954
- Triad America – $172,000