NewsBankruptcy & Restructuring partner, Patrick Collins, was quoted in a recent Newsday article examining the Chapter 7 bankruptcy filing of Alure Home Solutions — one of Long Island’s most well-known home remodeling companies. In the piece, Pat discusses how Chapter 7 differs from Chapter 11 proceedings and provides insight into what the filing may mean for impacted customers and employees.
From the article:
“I’ll say that what’s been filed here is not a good sign,” said bankruptcy and restructuring lawyer Patrick Collins, a partner at Farrell Fritz in Uniondale.
Unlike Chapter 11 bankruptcy cases, where the goal is to reorganize debts in an attempt to keep operating, Chapter 7 procedures are about liquidating a business’ assets and closing for good, Collins said.
In bankruptcy cases like these, he said, it’s typical for lenders to be classified as secured creditors, who usually get priority when it comes to recouping funds. After that, customers or impacted employees — often referred to as priority unsecured creditors — may be entitled to any remaining funds, though it’s less likely there will be many, if any, funds left over.
“It’s more likely than not that [customers] will not get a full recovery,” Collins said.
Read the full article here: Alure Home Solutions shuts down after filing for bankruptcy – Newsday