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Restaurant owner files Chapter 7 amid $44M+ liabilities
The Aug. 6 Chapter 7 filing in Alabama lists about $10.6 million in assets against $44.0 million in liabilities, with unsecured-creditor distributions expected to come only through liquidation.
A doughnut, diner, and restaurant chain owner has filed for Chapter 7 bankruptcy, raising questions about whether any of his restaurants or brands will continue operating. Yahoo Finance reports the case was filed by the individual Nick Pihakis, not by Pihakis Restaurant Group or related LLCs.
The filing was submitted Aug. 6 in the U.S. Bankruptcy Court for the Northern District of Alabama. According to the report, it lists approximately $10.6 million in assets versus $44.03 million in liabilities, and Pihakis estimated that funds would be available for distribution to unsecured creditors through the liquidation process.
Yahoo Finance said the court records identify about 50 creditors claiming more than $44 million, and also list 14 individual loans totaling more than $23.5 million, including loans of $9.0 million and $3.9 million.
The report also notes that several debts are already the subject of more than a dozen lawsuits in Alabama and South Carolina seeking more than $23.4 million in unpaid bills, and that there are additional lawsuits in other states, plus a concluded case involving business license renewals in Atlanta Municipal Court. The outlet added that it remains unclear which liabilities will be resolved through the Chapter 7 process.