SUBCHAPTER V OF CHAPTER 11 | 2024–2025
Served as debtor’s counsel for a specialty café and coffee roastery business in its voluntary Chapter 11 petition filed August 29, 2024 in the U.S. Bankruptcy Court for the Northern District of California (Case No. 24-41317). The filing was driven by the lingering operational effects of the COVID-19 pandemic and mounting costs from two pending lawsuits, with the debtor reporting approximately $250,000 in assets against $3.3 million in liabilities. The principal continued to operate the business as debtor-in-possession throughout the proceeding.
The firm guided the debtor through the restructuring process, resulting in court approval of the Chapter 11 plan and the settlement of both underlying lawsuits, allowing the business to continue operations. On April 23, 2025, Debtor confirmed a plan with a 15% dividend to general unsecured creditors, rejecting leases that were unhelpful and retaining leases that were helpful to Debtor’s reorganization.
Result: Chapter 11 plan approved; both underlying lawsuits settled; business preserved
U.S. Bankruptcy Court, Northern District of California — Oakland Division
