American Underwriting Services LLC (“AUS”) filed a Voluntary Petition seeking relief under Chapter 11 of the Bankruptcy Code on May 18, 2018. On June 27, 2018, S. Gregory Hays was appointed as the Chapter 11 Trustee for AUS.
The Trustee has determined that it is no longer feasible for AUS to conduct business operations and the Trustee is accordingly closing the AUS Office and terminating its remaining employees. The Trustee has also filed a Motion to Convert the AUS Bankruptcy Case to a Chapter 7 Liquidation Case and the Bankruptcy Court has scheduled a hearing for Tuesday, July 31, 2018 to consider this Motion.
AUS is ceasing all business operations effective immediately and will no longer service any policies, bind any coverages or accept any new policies or amendments thereto. The remaining employees of AUS will be terminated as of July 31, 2018 and no one will be available to address any policy issues after that date. To the extent that your firm needs to make alternate arrangements to service your insurance needs, you should do so immediately.
You will receive a notice and claim form after the case is converted.
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.
Appointed as the Monitor for this car dealership.
Hays was engaged to manage the collection of approximately $4 million in accounts receivable and to liquidate the assets of the estate. Hays will also assist the Trustee in any preference or other actions to recover assets for the Estate.
Atlantic Cable Services, Inc. (“ACS”) was a leading independent provider to the cable industry, specializing in sales, construction and installation. ACS provided a supply of a wide range of cable services including Fiber Optic Construction, Telephony, and Broadband Internet sales and installations through the southeastern United States.
On September 2, 2009 SunTrust Bank (“SunTrust”) filed a complaint seeking the appointment of a receiver to protect its interests in its collateral. By Order entered on September 16, 2009 in DeKalb County, Hays Financial Consulting, LLC was appointed as the Receiver. A copy of SunTrust’s complaint and the Order Appointing Receiver is included under the “Documents for Investors” tab.
The Court Approved the final report and discharged the Receiver on April 13, 2010. Pursuant to the Court Order, the Receiver made a distribution on administrative claims of the estate the week of April 19th.
The case has been officially closed and the Receiver has been discharged.