Avery Air Affiliate Bankruptcies – updated January 9, 2013

Dallas-based heating and air conditioning firm Avery Air Inc. — consisting of the five Avery Air affiliates — files Chapter 7 Bankruptcy in Dallas on January 2, 2013.

Avery Air scheduled $1 million in assets and between $1 million and $10 million in estimated secured and unsecured claims.  Avery estimates there would be no funds available for unsecured creditors.  Avery Air closed its offices Dec. 14.  Avery asserts that its employees will be paid through the end of 2012.

Pursuant to the Avery Air Conditioning Voluntary Petition, there are five associated bankruptcies – presumably affiliated entities, see list below. typically, the 5 cases will be jointly administered under the lowest case number, here 13-30033.

As is the case with all bankruptcies, the Section 341(a) meeting is currently scheduled to be held at the Dallas bankruptcy courthouse on February 4, 2013 at 10:40 AM at 1100 Commerce, Room 524, Dallas, Texas 75201.  Creditors are invited to attend, but are not required to attend.

The debtors’ Schedules and Statement of Financial Affairs will likely be filed within 14 days of the Petition Date — that is, by January 16, 2013  — which will shed light on the likelihood of recovery by unsecured creditors.  The debtors can ask for an extension of this deadline if it is needed.

If the cases are jointly administered under case no. 13-300033, then the Judge will likely be the Honorable Stacey G. Jernigan and the Chapter  7 Trustee will likely be Robert Milbank, Jr.  It appears unlikely that any reorganization effort will be attempted and that the Chapter 7 Trustee will merely liquidate the estate assets and make distributions in accordance with the bankruptcy priority schema.