Alpha Protective Services, Inc. (“APSI”) filed a Chapter 11 bankruptcy petition on April 12, 2012 and
continued operations during the Chapter 11 with the consent of its primary lender. APSI was allowed to
use the Lender’s cash collateral under strict guidelines to fund business operations including
payroll. After APSI defaulted under the terms of those agreements, the Lender withdrew its consent
and refused to consent to payroll being funded from the cash collateral and Neil Gordon was appointed
as the Chapter 11 trustee( the “Trustee”) on December 18, 2012.
On December 14, 2012, the Bankruptcy Court began the first day of hearings on whether APSI would be
permitted to continue using the lender’s cash collateral for payroll and other purposes. That hearing
concluded after a full day of evidence and legal arguments on December 20, 2012, and the Court
converted the Chapter 11 bankruptcy case to Chapter 7 and Neil Gordon continued to serve as the
Chapter 7 trustee. A copy of the appointment is included under the Docket Tab at
www.haysconsulting.net/Alpha . The Court also denied APSI the use of any of the lender’s cash
collateral to make payroll or for any other purpose. The result is that APSI was immediately closed and
all employees terminated.
The Trustee’s role is to liquidate all assets, pursue claims from litigation, and t maximize the
distribution to creditors including former employees Since the closure of APSI, the Trustee and his
advisors located and liquidated the assets of the company and is pursuing certain litigation claims. The
Report of Sale and Orders approving settlements are available for review at the Docket Tab.
In addition, the 401(k) plan that was available for certain employees was terminated, and funds were
distributed to participants who provided the plan distribution instructions. The final audit for the 401(k)
plan (covering 2013) will occur this spring.
As of March 1, 2014, a lawsuit filed by the U.S. Department of Labor (“DOL”) is pending against APSI and
the Trustee is working on issues regarding payroll with DOL. The Trustee anticipates filing various
lawsuits to recover funds for the Bankruptcy Estate. After the disposition of these lawsuits, the Trustee
is hopeful that he will be able make a distribution to creditors. At this time, the Trustee cannot predict
when or how much the distribution to creditors will be.
The Trustee will provide further updates on this web site as issues are resolved and the case progresses
in the bankruptcy court.
|February 19, 2013||Docket #223||Motion to Reject Lease or Executory Contract with Laketree, Inc.|
|February 19, 2013 ||Docket #222||Motion to Reject Lease or Executory Contract with General Electric Capital Corporation |
|February 14, 2013 ||Docket #220 ||Notice of Hearing filed by Trustee Neil C. Gordon |
|February 14, 2013||Docket #219 ||Motion to Reject Lease or Executory Contract with Fred Taylor Company, Inc. |
|February 12, 2013 ||Docket #216 ||Hearing continued with Order of Continuance |
|February 11, 2013 ||Docket #215 ||Order Granting Motion Seeking Allowance of Administrative Expense Claims and Proofs of Claim for Post-petition Wages|
|February 11, 2013||Docket #214 ||Response with no opposition (Notice that the IRS does not Object) |
|February 6, 2013 ||Docket #210 ||Order Granting Application to Employ Fife Whiteside as Special Counsel (Related Doc # 207)|
|February 5, 2013 ||Docket #209 ||Order Granting Motion to Reject Lease or Executory Contract with Earthlink Business (Related Doc #173) |
|February 5, 2013 ||Docket #208 ||Order Granting Motion to Reject Lease or Executory Contract with Pitney Bowes Global Financial Services|
|February 5, 2013 ||Docket #207 ||Application to Employ Fife M. Whiteside, P.C. as Special Counsel filed by Trustee Neil C. Gordon|
|January 29, 2013||Docket #203||Order Authorizing Employment of Auctioneer and Appraiser|
|January 24, 2013||Docket #198 ||Order Granting Motion for Sale of Property Under Section 363(b) (Related Doc #186)|
|January 11, 2013||Docket #188||Amended Motion for Sale of Property Under Section 363(b)(Related Document 186, Motion for Sale of Property)|
|January 10, 2013||Docket #186 ||Motion for Sale of Property Under Section 363(b)|
|January 11, 2013||Docket #8||Withdrawal of Notice for Temporary Restraining Order - Adversary Proceeding|
|January 11, 2013||Docket #188||Amended Motion for Order Approving Asset Purchase|
|December 28, 2012||Docket #171||Withdrawal of Notice of Abandonment|
|January 4, 2013||Docket #2||Motion for Temporary Restraining Order - Adversary Proceeding|
|January 4, 2013||Docket #1||Verified Complaint to Recover Assets - Adversary Proceeding|
|December 21, 2012||Docket #163||Notice of Proposed Abandonment or Disposition of Property|
|December 21, 2012||Docket #s 1 - 161||Docket through 12-21-12|
|December 20, 2012||Docket #157||Notice of Appointment of Ch. 7 Trustee|
|December 20, 2012||Docket #156||Order Converting to Ch. 7|
|December 19, 2012||Docket #153||Order Retaining Arnall Golden Gregory as Counsel to Ch. 7 Trustee|
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