Hellbender Brewing Files Chapter 11 Bankruptcy

by San Antonio Attorney

Hellbender Brewery located in Northeast, Washington, D.C.  has sought for court protection under Chapter 11 bankruptcy.  The company, which opened almost two years ago, owes more than $135,000 to its creditors, based on the court papers filed on Nov. 1.

Patrick Mullane, co-founder of the brewery, announced that the company is filing a reorganization bankruptcy.  They are giving limited information to avoid causing problems with the judge prior to the proceedings, Mullane said.  They are currently facing problems greater than financial issues that must be addressed, he said.

A press release by Hellbender Brewery revealed that they are filing for reorganization bankruptcy because of its financial obligations and distributor issues.

Mullane assures that the business operation will continue without interruption, and all D.C. restaurants and bars that carry their products will not be affected.

Based on court documents filed, the two largest creditors of Hellbender Brewery are Vanguard Realty Group and D.C.  Office of Tax and Revenue.

Every Chapter 11 bankruptcy case involves a reorganization plan, by which the debtor intends to pay back creditors using its income and assets.  A disclosure statement and reorganization plan has to be submitted and confirmed by the court.  The plan will be forwarded to creditors for approval.  If approved, the court authorizes the plan, the debtor gets a debt discharge, and then it has to execute the plan under the supervision of the bankruptcy court and the U.S. Trustee.  When the plan is completely carried out, the bankruptcy court gives a final decree, finishing its oversight.

Chapter 11 is a complex process, so a debtor should get help from a bankruptcy attorney.

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