With six material suppliers and equipment lessors listed as creditors, Texas painting and construction contractor Fragola Construction filed for Chapter 7 bankruptcy on December 31, 2020, according to the US Bankruptcy Court for the Northern District of Texas.
Fragola Construction, based in Addison, TX, claims in their bankruptcy petition that they owe a combined $346,884 to 17 different creditors with secured and unsecured claims.
At the time of their bankruptcy filing on December 31st, Fragola Construction reported the following:
- $346,884 in total liabilities
- $191,273 in total assets
- $0 in total checking
- $0 in accounts receivable
Likely due to pandemic constraints, Fragola Construction has been beleaguered by a 36.8% decrease in gross revenue between 2019 and the date of the contractor’s bankruptcy filing.
From 2018 to 2019, Fragola Construction’s gross revenue rose 34.3%, to $1.6 million. In 2020, that number dropped to $1,028,040.
Under a Chapter 7 bankruptcy filing, a creditor’s assets are liquidated under the guidance of an overseeing trustee. The liquidation process takes place in order to pay back the debtor’s creditors. A trustee is tasked with converting the debtor’s nonexempt property into cash to be disbursed to the creditors.
Secured claims are typically paid out first with any available funds. Once the secured claims are satisfied, the bankruptcy trustee will distribute any remaining funds for priority unsecured claims, followed by nonpriority unsecured claims.
The two lone secured claims are worth a combined $275,404. The First National Bank of Tom Bean is listed as a creditor with the larger of the two secured claims, valued at $274,404 for a secured SBA loan. The Vant Group holds the second secured claim for a loan worth $1,000.
The six material suppliers and equipment lessors listed as creditors in Fragola Construction’s bankruptcy petition all involve nonpriority unsecured claims. Sherwin-Williams Commercial Paint Store holds the largest at $17,604.
The remaining five material suppliers and equipment lessors include:
- Ahern Rentals, Inc. – $4,948
- Atmos Energy Corp. – $319
- Constellation New Energy, Inc. – $138
- EquipmentShare.com, Inc. – $6,348
- Granger (material supplier) – $275
John R. Ames, CTA has three separate priority unsecured claims worth a combined $2,938. The basis of each claim is listed as “Business Personal Property Taxes” spanning from 2017 through 2019.