DALLAS, Dec. 24, 2014 /PRNewswire/ — Attorneys from the Dallas complex litigation boutique Bailey Brauer PLLC won a court battle over the filing and payment of back taxes for Buffet Partners L.P., the former parent company of Furr’s Cafeteria.
In a Dec. 17 ruling, Judge Harlin DeWayne Hale of the U.S. Bankruptcy Court for the Northern District of Texas ordered Atlanta-based Chatham Credit Management III LLC (CCM) to file and pay Buffet Partners’ 2013 and 2014 taxes and preparation expenses, the combined total of which could be as much as $130,000.
In April, CCM purchased the assets of San Antonio-based Buffet Partners, including Furr’s Cafeteria, just two months after Buffet Partners filed for bankruptcy protection. Shortly after, CCM resold the same assets to Arizona-based Fresh Acquisitions LLC, which has since rebranded the Furr’s franchise as Furr’s Fresh Buffet.
Although the purchase agreement between CCM and Buffet Partners required CCM to file Buffet Partners’ tax returns and pay the taxes and preparation expenses, CCM repeatedly refused to do so, says Bailey Brauer named partner Alex Brauer. He represents Buffet Partners Holding Co. LLC (BPHC), which owns Buffet Partners and its general partner, Buffet G.P. Inc. BPHC did not file bankruptcy and participated solely as the equity interest holder of Buffet Partners and Buffet G.P.
“Chatham Credit’s purchase and immediate asset resale left Buffet Partners without the resources necessary to wind up their corporate affairs, including filing and paying their taxes,” Mr. Brauer says.
The situation was complicated by the fact that Chatham Credit is an affiliate of Chatham Capital Partners Inc., which holds the vast majority of Buffet Partners’ debt and essentially controls the company.
“Chatham Capital has used its unique position to maximize its own recovery in the bankruptcy at the expense of other creditors,” says Ben Stewart, of counsel to Bailey Brauer and co-counsel in the case. “We’re grateful to Judge Hale for requiring Chatham to abide by the agreements the company willingly signed.”
Bailey Brauer PLLC is committed to providing efficient, effective legal representation in high-stakes litigation. Led by experienced trial and appellate lawyers Clayton Bailey and Alex Brauer, the firm focuses on complex commercial litigation, agribusiness, appeals, and class and collective actions. For more information, please contact Bailey Brauer today.
For more information on the court’s ruling, contact Amy Hunt at 800-559-4534 or firstname.lastname@example.org.