Tuesday, October 13, 2009
A Trustee Bows Out
I don't know exactly what the backstory is on this new bankruptcy filing today; apparantly, there is some sort of conflict between the initially proposed Trustee and Chisholm. Perhaps not all that surprising, in a small city like Pensacola. In any case, since this Trustee is opting out, it looks like there will soon be a new Trustee appointed to oversee the Chisholm bankruptcy estate for the court:
Monday, October 12, 2009
Proof of Claim
A copy of the various initial notices sent out to creditors in the CPCE bankruptcy case, including the "Proof of Claim" form, was filed by the court today. These notices and forms contains some good basic information on what to do if you are a creditor in this bankruptcy case:
Friday, October 9, 2009
Fourteen (14) Days to Respond
The Magistrate in the Federal cases acted on the Motions of Default filed against Johnny Chisholm personally on Monday. She issued the same Order in each of the two cases: "Within FOURTEEN (14) DAYS from the date of docketing of this order, Defendant Johnny Chisholm shall file a response to Plaintiff’s motion." This gives him until October 21 to respond.
If Chisholm fails to respond (either pro se or via the supposed new attorney) within these fourteen days, the court should approve the default motions against him (I'm hedging here a bit, because as we've seen, this court has been strangely reluctant to enter defaults in these cases, even when the ground for such have been pretty clear):
If Chisholm fails to respond (either pro se or via the supposed new attorney) within these fourteen days, the court should approve the default motions against him (I'm hedging here a bit, because as we've seen, this court has been strangely reluctant to enter defaults in these cases, even when the ground for such have been pretty clear):
The Automatic Stay
Now that we have a bankruptcy underway in addition to all the civil suits, I should probably take a moment and try to explain in laymans' terms one very important aspect of how the bankruptcy will affect things from here on out: The automatic stay.
As this Wikipedia entry explains, the "...automatic stay is an automatic injunction which halts actions by creditors, with certain exceptions, to collect debts from a debtor who has declared bankruptcy." As the entry indicates, it zaps into existence at the very moment the bankruptcy is first filed (which in this case was Tuesday, October 6).
Notice that the debt collection actions prohibited include "...beginning or continuing judicial proceedings against the debtor..." So, what this means is, the various civil lawsuits must come to a grinding halt. The plaintiffs (who are "creditors") cannot continue pursuing their lawsuits. This means they can't file any new motions against the now bankrupt Chisholm Properties Circuit Events, LLC (CPCE); the lawsuit versus them is basically on hold for the duration of the bankruptcy.
Notice however that there are other defendants in the civil suits who have NOT filed for bankruptcy...Johnny Chisholm personally, for example. The lawsuits should be able to proceed against the non-bankrupt parties as normal; to do this, the lawsuits will likely be split, with the now bankrupt CPCE being segregated in a seperate lawsuit (that will be put on hold as per the automatic stay). This procedure is known as "disaggregation," and I'm guessing we'll see that happen in these civil suits soon...
As this Wikipedia entry explains, the "...automatic stay is an automatic injunction which halts actions by creditors, with certain exceptions, to collect debts from a debtor who has declared bankruptcy." As the entry indicates, it zaps into existence at the very moment the bankruptcy is first filed (which in this case was Tuesday, October 6).
Notice that the debt collection actions prohibited include "...beginning or continuing judicial proceedings against the debtor..." So, what this means is, the various civil lawsuits must come to a grinding halt. The plaintiffs (who are "creditors") cannot continue pursuing their lawsuits. This means they can't file any new motions against the now bankrupt Chisholm Properties Circuit Events, LLC (CPCE); the lawsuit versus them is basically on hold for the duration of the bankruptcy.
Notice however that there are other defendants in the civil suits who have NOT filed for bankruptcy...Johnny Chisholm personally, for example. The lawsuits should be able to proceed against the non-bankrupt parties as normal; to do this, the lawsuits will likely be split, with the now bankrupt CPCE being segregated in a seperate lawsuit (that will be put on hold as per the automatic stay). This procedure is known as "disaggregation," and I'm guessing we'll see that happen in these civil suits soon...
Wednesday, October 7, 2009
Notice of Deficiency
As I mentioned in the previous post, there were some Schedules missing from yesterday's bankruptcy filing. Today the bankruptcy clerk noticed that problem too:
From what I've been told, this is a not-too-uncommon phenominon in bankruptcy; filers are often in a hurry to file these Voluntary Petitions, in order to meet some crisis and stave off creditors at the 11th hour. And when there is not enough time to gather all the info for all the schedules, an incomplete filing is made. The court simply gives the filer more time (in this case, until October 21) to make up the deficiencies.
I imagine this Voluntary Petition was rushed out the door on Tuesday, to throw a monkey wrench in the 4 Motions for Default that were filed against Chisholm in the Federal cases on Monday.
From what I've been told, this is a not-too-uncommon phenominon in bankruptcy; filers are often in a hurry to file these Voluntary Petitions, in order to meet some crisis and stave off creditors at the 11th hour. And when there is not enough time to gather all the info for all the schedules, an incomplete filing is made. The court simply gives the filer more time (in this case, until October 21) to make up the deficiencies.
I imagine this Voluntary Petition was rushed out the door on Tuesday, to throw a monkey wrench in the 4 Motions for Default that were filed against Chisholm in the Federal cases on Monday.
One Mighty Bankruptcy
Johnny Chisholm's OMW company, Chisholm Properties Circuit Events, LLC, filed for Chapter 7 bankruptcy protection yesterday.
Yes, that's correct, Chapter 7. In my haste to post the news on Facebook yesterday I misread the filing, and misreported it as a Chapter 11:
"Title 11" actually refers to the entire bankruptcy code. "Chapter 11" is one of it's subdivisions, as is "Chapter 7."
The difference is a big one. Chapter 11 bankruptcy of a corporation is an attempt at a reorganization, trying to keep the business alive. Chapter 7 is, on the other hand, essentially a liquidation.
In other words, One Mighty Weekend is now dead. Not exactly a surprise to anyone here I'm sure, but at least now we can say it's official.
Because of the immense historical significance of this document, I'll post the entire initial bankruptcy filing below. But first I'll summarize the really interesting parts, ie, the now fully revealed assets and liabilities of One Mighty Weekend:
Disney Resort Destinations: $495,874.67
Now, remember back to last May, folks? When Chisholm and JustCircuit were denying Disney was owed ANY money at all? That the real reason for the loss of the Disney venues was unexpected "last minute price increases" by Disney, hence it was all Disney's fault? Remember those oft-regurgitated JustCircuit talking points?
Well, I guess we can now say...that was a bit of a fib. Or, another way to put it: They were only off by $495,874.67.
Below is the actual initial filing, known as a "Voluntary Petition," along with the Schedules. Notice there are missing schedules (A, B and C), those will probably be filed later.
There was another filing too (not posted), the "Notice of Chapter 7 Bankruptcy Case, Meeting of Creditors, & Deadlines," which I can easily summarize: It sets the date for the initial hearing, the "Meeting of Creditors" for December 3, 2009, at 9:15am, in Pensacola. If you are on the list above, and there is something special you'd like to say as the bankruptcy get underway...this'll be where you'll want to be.
The full Voluntary Petition can be viewed here.
Yes, that's correct, Chapter 7. In my haste to post the news on Facebook yesterday I misread the filing, and misreported it as a Chapter 11:
"Title 11" actually refers to the entire bankruptcy code. "Chapter 11" is one of it's subdivisions, as is "Chapter 7."
The difference is a big one. Chapter 11 bankruptcy of a corporation is an attempt at a reorganization, trying to keep the business alive. Chapter 7 is, on the other hand, essentially a liquidation.
In other words, One Mighty Weekend is now dead. Not exactly a surprise to anyone here I'm sure, but at least now we can say it's official.
Because of the immense historical significance of this document, I'll post the entire initial bankruptcy filing below. But first I'll summarize the really interesting parts, ie, the now fully revealed assets and liabilities of One Mighty Weekend:
AssetsLooking at this list, we can see some Chisholm creditors we're already familiar with, such as "S. Bardfield & C. Carver," "Production Resource Group," and "Universal Orlando." But as you can see, there are also some new revelations here. The biggie being of course (drum roll):
-------
Estimated at: "$0 to $50,000"
Debts (all unsecured):
-------
Florida Department of Revenue: Unknown
Internal Revenue Service: $1,926.17
A & R Radio Rentals, Inc.: $1,529.34
Access Pass & Design: $3,117.98
Amscot Corp., Dept C: $488.00
Arabian Nights: $48,000.00
Arlene Weiss: $52,300.00
Art F/X: $1,025.00
Big Events: $6,000.00
Casswood Insurance Agency: $23,903.07
Christie Lites Orlando Rentals: $25,265.37
Disney Resort Destinations: $495,874.67
DW Uniform Creations: $4,209.90
Event Marketing & Management: $3,000.00
Evigna Brand Insight: $13,626.86
Freeman Companies: $6,296.71
Harddrive Productions, Inc.: $ 13,710.00
Hotflyers.com: $5,541.21
Hyatt Regency Grand Cypress: $14,691.87
In Magazine: $6,152.04
Karl's Event Rental: $29,659.00
Lasersonics: $9,006.61
Masterson Elec. Contracting: $2,800.00
Maximum Event Staffing: $10,375.00
Mears Transportation: $11,033.00
Metropolis Productions: $18,000.00
Presentation Services: $43,212.47
Production Resource Group: $310,514.00
RMC Corporation: $101,957.01
S. Bardfield & C. Carver: $200,000.00
T-Mobile: $405.35
Unique Option: $6,800.00
Universal Orlando: $249,007.00
Universal City Dev. Partners: Unknown
UPS: $ 1,700.69
-------
GRAND TOTAL DEBT: $1,719,202.15
Disney Resort Destinations: $495,874.67
Now, remember back to last May, folks? When Chisholm and JustCircuit were denying Disney was owed ANY money at all? That the real reason for the loss of the Disney venues was unexpected "last minute price increases" by Disney, hence it was all Disney's fault? Remember those oft-regurgitated JustCircuit talking points?
Well, I guess we can now say...that was a bit of a fib. Or, another way to put it: They were only off by $495,874.67.
Below is the actual initial filing, known as a "Voluntary Petition," along with the Schedules. Notice there are missing schedules (A, B and C), those will probably be filed later.
There was another filing too (not posted), the "Notice of Chapter 7 Bankruptcy Case, Meeting of Creditors, & Deadlines," which I can easily summarize: It sets the date for the initial hearing, the "Meeting of Creditors" for December 3, 2009, at 9:15am, in Pensacola. If you are on the list above, and there is something special you'd like to say as the bankruptcy get underway...this'll be where you'll want to be.
The full Voluntary Petition can be viewed here.
Monday, September 21, 2009
Universal Orlando Joins the Fray
[Filed in state court in Orange County, Florida; the case number is 2009-CA-029624-O.]
You wrote on September 17, 2009 at 5:24pm:---
*** BREAKING NEWS ***
Chisholm Properties Circuit Events, LLC was sued today by Univeral City Development Partners, Ltd...aka Universal Orlando. Which owns Universal Islands of Adventure, Universal Studios Florida, and Wet 'n Wild.
[The] state court filing images here:
...plus the corporate ID of Univeral City Development Partners, Ltd to what is more commonly known as Universal Orlando...
...plus Universal Orando's website, thrown in for good measure.
What is this suit about? How much is it for? What exactly did Chisholm do to piss off Universal Orlando?
And the answers to these questions...I know not. Again, it's a state court filing, and unlike the Federal case, the actual docs are not easily obtainable by me. All I can tell you is this lawsuit popped up in the Orange County, FL court system today, and Universal is the plaintiff, Johnny the defendant.
But we can safely infer, I think, that this is probably not good news for Johnny Chisholm.
You wrote on September 21, 2009 at 9:35am: It looks like Tony Hayden at TCD has tracked down this new Universal lawsuit.---
The suit appears to be almost the entire unpaid balance owed to Universal Orlando from a Chisholm event held there in 2008: $217,779.47, plus accrued interest.
I guess this would explain why Universal venues were not considered as an alternate when Disney rejected him during this most recent crisis of 2009.
How many theme parks are left in Orlando?
[Dennis Brown on GDAD then proceeded to partially answer that somewhat rhetorical question I posed at the end there, finding this one Orlando theme park Johnny Chisholm is (probably) not deeply in debt to (yet).]
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