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 Receiver for this operating Truck Stop and commercial gas station and retail facility. We are actively operating the facility and addressing issues from previous management.
Engaged as Accountants to the Chapter 7 Trustee for this designer and manufacturer of trade show booths and exhibits.
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.
NationsLine NJ, Inc. was one of the NationsLine entities based in Roanoke, VA. The various NationsLine entities were telecom providers of local and long distance, high speed DSL & Internet services. Hays is providing accounting services to the Trustee.
Hays was engaged as Accountants and Financial Advisors to the Trustee of the bankruptcy estate of this hedge fund. The Debtor filed bankruptcy as investors were seeking to withdraw their funds. Hays recovered and liquidated assets and prepared a funds tracing database. The case was the subject of a TV consumer investigator’s report on WSBTV.