Below are details of four additional pleadings filed last week that caught our attention. Click the links to view the pleading, with a copy of our new AI-powered summary attached.
Amended Declaration of Curt Kroll in Support of Debtors' First-Day Motions (In re: Elite Equipment Leasing, LLC, et al.)
The debtors face financial distress due to unfavorable equipment financing terms, integration challenges from acquisitions, and rising interest rates. Despite significant business opportunities including $80 million in project backlog and contracts for major projects like the Athletics' baseball stadium in Las Vegas, the debtors require DIP financing from Commercial Funding Inc. (CFI) to continue operations. The declaration explains why joint administration is appropriate, details employee obligations that need immediate payment, and outlines the debtors' proposed cash management system. The document emphasizes that immediate relief is critical to preserve going-concern value and avoid irreparable harm to ongoing construction projects.
Motion to Compel the United States Government and Certain Third Parties to Remove Their Property from the Debtor's Alachua, Florida Site or, in the Alternative, Authorizing the Debtor or Successful Bidder to Dispose of Such Property Without Liability, and Granting Related Relief (In re: Alachua Government Services, Inc.)
This motion seeks to compel the United States Government and third parties to remove their property from the debtor's Alachua, Florida facility by October 15, 2025, or alternatively, to authorize the debtor or successful purchaser to dispose of such property without liability. The debtor, a former biologics contract manufacturing company that operated a 183,000-square foot facility and 92,000-square foot expansion in Alachua, Florida, filed for Chapter 11 bankruptcy on July 6, 2025, and is now attempting to sell these facilities. Despite months of communication with the government, more than 800 pieces of government-owned equipment remain on site, preventing the debtor from finalizing a stalking horse bid and delaying the sale process. The government's failure to remove its equipment has caused the debtor to incur ongoing administrative expenses and threatens the viability of the Chapter 11 case.
Debtors' Motion for Authority to Enter into Insurance Premium Finance Agreement and to Provide Adequate Protection (In re Jackson Hospital & Clinic, Inc., et al.)
This motion requests court authorization for the debtors to enter into a premium finance agreement with FIRST Insurance Funding for a physicians' malpractice insurance policy. The debtors seek to finance $1,019,750.90 with a total payment obligation of $1,051,882.83 (including interest at 7.5% APR), to be paid in 9 monthly installments of $116,875.87. The motion requests approval of a first-priority security interest for FIRST in the financed policy and related collateral, with authorization for automatic stay relief in the event of default, allowing FIRST to cancel the policy and collect unearned premiums. The debtors argue this financing is essential to maintain required insurance coverage while preserving cash flow and serves the best interests of the estate.
Motion for Authority (I) to Wind Down and Terminate the Silver Airways 401(k) Plan; (II) to Employ Verdeja & Alvarez, LLP to Conduct the Final Audits of the 401(k) Plan; and (III) to Pay Verdeja & Alvarez, LLP a Fixed Fee from the Assets of the 401(k) Plan (In re Silver Airways LLC, et al.)
This motion, filed by Chapter 7 Trustee Soneet R. Kapila, seeks court approval for three related actions: (1) termination of the Silver Airways 401(k) Plan; (2) employment of Verdeja & Alvarez, LLP to conduct mandatory ERISA-required audits of the 401(k) Plan for 2024 and 2025; and (3) authorization to pay Verdeja & Alvarez a fixed fee of $22,000 from the 401(k) plan assets rather than from bankruptcy estate assets. The Trustee's authority to administer the 401(k) plan stems from Section 704(a)(11) of the Bankruptcy Code, which requires a trustee to perform the obligations of a plan administrator. The motion emphasizes that the 401(k) plan assets are not part of the bankruptcy estate under 11 U.S.C. §541(b)(7) and that terminating the plan is in the best interests of both the estate and the former employees.