Popular fine-dining establishment Eddie’s House has filed for Chapter 11 bankruptcy in an attempt to resolve a dispute with the Arizona Department of Revenue (ADOR). Chapter 11 bankruptcy can provide a debt relief option for small businesses concerned with debts and cash flow problems.
The restaurant, owned by celebrity chef Eddie Matney filed for bankruptcy protection in mid-April in order to resolve a claim of more than $500,000 with the Arizona Department of Revenue. According to court documents, the ADOR has a claim of $518,913.48 against the restaurant. Additionally, the restaurant’s liabilities were listed as between $500,001 and $1 million. Available assets are listed as between $100,000 and $500,000.
“Bankruptcy provides specific relief for the restaurant,” said attorney Thomas Allen, who is representing Matney. “It stops the accrual of penalty interest,” he said. “It provides a mechanism to understand and resolve any disputes with the tax debt and propose a plan that would pay that out over 60 months.”
Other creditors listed in the filing include: utility companies Arizona Public Service and Southwest Gas, a plumbing company, the city of Scottsdale tax and licensing department, and the restaurant review website OpenTableInc. But Allen says the majority of the filing is to reorganize in able to free the company from the tax dispute with ADOR.
Business is Still Open
“We’re open for business,” Allen said. “The business is doing much better than in years past. We hope to file a claim of reorganization very quickly.”
Source: Phoenix Business Journal, Eddie’s House files for bankruptcy protection, restaurant remains open, April 28, 2014