In this article, Adam Stein-Sapir of Pioneer Funding, LLC, provides insight into the bankruptcy filing of Fizzics Group LLC.
Article Link: https://www.app.com/story/money/business/consumer/2019/03/13/fizzics-bankruptcy-shark-tank/3149288002/
Summary
Fizzics Group LLC, known for its innovative beer-pouring technology and a successful pitch on “Shark Tank,” has filed for Chapter 11 bankruptcy. The company, which developed a device using sound waves to enhance the beer-drinking experience, has reported assets and liabilities that suggest a significant liquidity problem. Co-founder Philip Petracca, who left the company in 2017 to start a craft brewery, expressed his disappointment upon learning of the bankruptcy. Fizzics’ financial troubles include disputed claims and debts to various creditors, including a lender specializing in short-term loans.
- Fizzics Group LLC filed for Chapter 11 bankruptcy with assets between $100,000 and $500,000 and liabilities between $1 million and $10 million.
- The company is disputing a claim for commissions by Blue Water Ventures Two LLC, linked to “Shark Tank” investor Lori Greiner.
- Adam Stein-Sapir commented on the liquidity issues indicated by the bankruptcy filing.
Q&A
What does a Chapter 11 bankruptcy filing mean for a company like Fizzics Group LLC?
Chapter 11 bankruptcy allows a company like Fizzics Group LLC to reorganize its debts and continue operating while it works out a plan to pay creditors. This process can provide the company with the opportunity to restructure its finances and potentially return to profitability.
How does the bankruptcy filing impact the original founders of Fizzics?
The bankruptcy filing can be a significant emotional and financial blow to the original founders, especially if they still hold an ownership stake in the company. It can also affect their reputation and future business ventures.
What are some options for creditors when a debtor like Fizzics files for bankruptcy?
Creditors have several options, including participating in the bankruptcy proceedings to protect their interests, filing a proof of claim, or considering the sale of their claim to a trade claim buyer. For more information on selling bankruptcy claims, creditors can visit Pioneer Funding LLC’s guide to selling a bankruptcy claim to trade claim buyers.
