After being selected as lead restructuring counsel for Apex Linen Service LLC and four related affiliates, G&M Chairman Harley Goldstein was quoted extensively in the Wall Street Journal regarding G&M’s filing of chapter 11 petitions for the companies in the United States Bankruptcy Court for the District of Delaware.  The Debtors own and operate a private-equity-backed commercial linen service based in Las Vegas, Nevada that services the high-volume needs of large-scale hotel and casino resort operators.  They employ approximately 200 people, and had $21.3 million in revenue last year.  The Wall Street Journal notes that a $35 million capital raise was achieved to help the business expand, and that the secured lenders are owed in excess of $23.5 million.  The Wall Street Journal quoted Mr. Goldstein, stating:

The fallout from Covid-19 constrained the company’s liquidity and caused defaults under its lending agreements, Apex lawyer Harley Goldstein told The Wall Street Journal.  Apex and its lenders began discussions as the liquidity crisis worsened, but weren’t able to reach consensus, prompting the chapter 11 filing in U.S. Bankruptcy Court in Wilmington, Del., said Mr. Goldstein, of the law firm Goldstein & McClintock LLLP.  The company, which restarted operations as Las Vegas hotels have begun reopening, expects to reorganize and continue serving customers in an improved economy, Mr. Goldstein said.  The company expects to arrange additional funding shortly to help it get through bankruptcy, and alternatives for its leaving bankruptcy, such as a sale or debt-for-equity swap, are also being discussed, Mr. Goldstein said.

For more information (Wall Street Journal subscription required), visit: Apex Linen, Unraveled by Covid-19, Files for Bankruptcy