Air Pros, a multi-state HVAC services provider, has initiated Chapter 11 bankruptcy proceedings to facilitate the sale of its business units following significant operational challenges and mounting debt obligations, according to court documents filed Sunday.
Filing Details and Corporate Structure
AFH Air Pros, LLC and its affiliated entities filed voluntary petitions on March 16, 2025, in the United States Bankruptcy Court for the Northern District of Georgia (Case No. 25-10356-PMB), seeking joint administration of their cases. The filing was supported by a 25-page declaration from Andrew D.J. Hede, a Senior Managing Director at Accordion Partners, LLC who has served as the company's Chief Restructuring Officer since September 2024.
The company operates through a complex organizational structure with Air Pros Solutions Holdings, LLC as the ultimate parent company, which owns 100% of Air Pros Solutions, LLC. This entity, in turn, controls numerous operating subsidiaries across eight states. According to the declaration, AKAA Family, LLLP holds the largest ownership stake in the parent company at 75.19%, with other investors including Capital Finance Opportunities 1901C, LLC (9.74%) and C&P Hansen Heating and Cooling, Inc. (8.50%).
Financial Obligations and Challenges
The declaration reveals substantial financial obligations, including:
- Secured debt of approximately $250.4 million owed to Prepetition Secured Parties under a credit agreement dated October 31, 2022
- Outstanding principal of $196.9 million under a term loan facility
- Approximately $23.5 million in revolving credit facility obligations
- An estimated $45 million in general unsecured debt, including $17.1 million in contingent, unliquidated, and disputed obligations related to previous acquisitions
"The Debtors' level of indebtedness has made it more difficult to satisfy the Debtors' obligations, resulting in defaults on, and acceleration of, such indebtedness," Hede stated in the declaration. The company also noted that dedicating substantial cash flow to debt service has "reduced the availability of such cash flows to complete various initiatives to fully integrate the acquired business units."
Operational History and Integration Challenges
Founded in 2017 in Fort Lauderdale, Florida, by Anthony Perera, Air Pros expanded rapidly through acquisitions to establish a presence in Florida, Georgia, Alabama, Mississippi, Louisiana, Texas, Colorado, and Washington. The company currently employs more than 700 people and operates over 600 vehicles, serving hundreds of thousands of customers through nine distinct business units:
- Air Pros (Legacy) - Florida
- One Source Home Service - Colorado
- Hansen Super Techs - Alabama, Mississippi, Florida
- Doug's Service Company - Louisiana
- Air Force Heating & Air - Georgia, Alabama
- Dallas Plumbing & Air Conditioning - Texas
- Dream Team Heating & Air - Louisiana
- CM Heating & Cooling - Washington
- East Coast Mechanical Air Conditioning & Plumbing - Florida
The declaration identifies significant operational challenges following this expansion: "After acquiring several new business units in an approximately 15-month period, the Debtors have not been able to fully integrate its various business units. Many of the operating practices of the legacy Air Pros business have not been applied to acquired business units."
Strategic Alternatives and Sale Process
The company has pursued multiple strategic paths before filing:
- In July 2023, Air Pros retained Jefferies LLC to explore strategic transactions and market the company for sale as a going concern, though this process "did not result in any viable transactions"
- Following corporate governance changes, including the appointment of Lawrence Hirsh as sole manager in January 2024 and the resignation of founder Anthony Perera in October 2024, the company evaluated several alternatives
- In October 2024, Air Pros re-engaged Jefferies to market individual business units for sale, which the declaration states has yielded "several formal offers that will serve as baseline, stalking horse bids"
"The best path forward to maximize the value of the Debtors' assets was a break-up sale of the businesses," Hede explained in the filing.
Debtor-in-Possession Financing
To facilitate operations during the bankruptcy proceedings, the company has secured $20 million in debtor-in-possession financing, comprising:
- $10 million in "new money" loans ($4 million available upon entry of interim order)
- $10 million in "rollup" loans converting existing prepetition obligations
The financing package is described as critical for maintaining business relationships with vendors and customers, paying employees, and funding operations while pursuing the sale process.
Path Forward
According to the declaration, the Debtors "commenced these chapter 11 cases with the support of the Prepetition Lenders with the goal of consummating the sale of the Debtors' assets." The company intends to file a motion seeking approval of bidding procedures within the first several days of the proceedings.
The case is being jointly administered for the numerous Air Pros entities in the Northern District of Georgia bankruptcy court before Judge Paul M. Baisier. While the declaration doesn't specifically identify legal representation, court docket records would contain this information.
This article was prepared using Stretto Conductor, our new AI-powered assistant that's here to help. Stretto Conductor was able to create this summary of a 25 page court filing in less than a minute. Always review the underlying docket filings for accurate information. The information and responses generated by Stretto Conductor may contain errors or inaccuracies and should not be relied upon as a substitute for professional or legal advice.