Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Illinois Beer Distributor Seeks Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Date: August 9, 2013
Key Contacts
Back
A popular Anheuser-Busch distributor sought Chapter 11 bankruptcy protection in Illinois this week, in the hopes of reorganizing its debt and emerging in a stronger financial position.
Earl Gaudio & Son Inc. officially filed for bankruptcy protection in a U.S. bankruptcy court in Danville, Illinois. A week prior to the filing, a court approved the sale of the company to Skeff Distributing Co., a Decatur-based Anheuser-Busch distributor, according to the East Illinois newspaper the News-Gazette. The company listed between $1 million and $10 million in liabilities in the bankruptcy filing, and between $10 million and $50 million in assets.
However, a family battle over the sale of the company threatens to muddle the court process. In the civil case filed in June, a guardian for Earl Gaudio sought an injunction to remove Earl Gaudio’s son, Dennis Gaudio, and grandson, Eric Gaudio, as officers of the company, according to the St. Louis Post-Dispatch. All three Gaudios hold ownership stakes in the distributorship, the newspaper added. The guardian accused Dennis and Eric Gaudio of breaching their fiduciary duty to the company by incurring debts, failing to pay taxes, and failing to pay Anheuser-Busch for products in dozens of instances.
“As a direct and proximate result of the misfeasance and breach of fiduciary duty by the defendants, Dennis Gaudio and Eric Gaudio, the family owned business that had operated successfully for almost one-half century is now unable to meet its financial obligations and … must be sold,” the lawsuit states, according to the Post-Dispatch.
However, Gaudio’s son and grandson argue that the company’s long-term financial troubles and insufficient liquid assets prevented them from covering their tax obligations, and any negative balances and bounced checks have since been satisfied.
Skeff Distributing Co. noted that it does not anticipate the bankruptcy proceedings or family dispute to hinder its purchase of the company by the end of the year.
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
IP Infringement: What Steps Can You Take If You're Affected?
IP infringement occurs when someone uses your intellectual property without your permission or beyond the scope of the permission you granted. Common examples of IP infringement include copying a product’s patented features or using a trademarked logo in a way that is likely to confuse consumers about the source or affiliation of goods or services. […]
Author: Michael Mietlicki
Public Allegations, Unfinished Investigation: What New Jersey Businesses Should Do Next
When facing public allegations of wrongdoing, companies should not let the speed of the public conversation dictate the speed of an investigation. An investigation designed to confirm a preferred narrative rather than establish the facts can create serious problems later, particularly if litigation, regulatory scrutiny, or employment claims follow. Key Takeaways When public allegations surface […]
Author: Sean M. Pena
BESS Interconnection: Managing Grid, Cost, and Schedule Risk
For battery energy storage system (BESS) developers, securing equipment and site control is only part of the development equation. A project must also connect to the electric grid, and increasingly, BESS interconnection is one of the biggest sources of schedule, cost, and contractual risk. Key Takeaways This article is Part 3 of our Battery Storage […]
Author: Nicholas Wall
Navigating Director and Officer Liability in Times of Financial Distress
Director and officer liability increases sharply when a company is in financial distress. Decisions that would draw little attention in a healthy business can later be challenged by creditors, shareholders, bankruptcy trustees, and regulators as breaches of fiduciary duty, fraudulent transfers, or oversight failures. Understanding where that exposure comes from, and how to manage it, […]
Author: Michael Mietlicki
Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey
For developers pursuing battery energy storage system (BESS) projects, finding the right property is only the beginning. BESS site selection is as much a legal and transactional exercise as a real estate decision, with risk analysis central to the project’s ultimate success. Key Takeaways The core questions for BESS site selection in New York and […]
Author: Nicholas Wall
What Business Owners Get Wrong Before Meeting a Litigation Attorney
What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]
Author: Michael Mietlicki
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.