El Cajon Brewing Company, Chapter 11

Discussion in 'Pacific' started by evilc, Oct 22, 2012.

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  1. CarlStarrett

    CarlStarrett Initiate (0) Nov 24, 2012 California

    I don't see how they'll even recoup half of the money borrowed.
     
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  2. CarlStarrett

    CarlStarrett Initiate (0) Nov 24, 2012 California

    Premier is listed as a secured creditor in the bankruptcy filing, but only for a claim of $10,400 for "Cooking equipment".
     
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  3. CarlStarrett

    CarlStarrett Initiate (0) Nov 24, 2012 California

    I forgot to mention the judge granted El Cajon's motion for relief from the automatic stay. They are now free to pursue legal remedies to against "All of the Debtor's interest in all fixtures, appurtenances, equipment, leases, rents, proceeds, accounts and inventory."
     
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  4. CarlStarrett

    CarlStarrett Initiate (0) Nov 24, 2012 California

    Yeah, but where's the fun in that?
     
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  5. CarlStarrett

    CarlStarrett Initiate (0) Nov 24, 2012 California

    As of last night, the place is still open and the pizza is still good. They had a really good blues/jazz trio that I've seen before: http://robinhenkel.com/.
     
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  6. carnevoodoo

    carnevoodoo Initiate (0) Oct 10, 2007 California

    I hope this thread never dies.
     
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  7. CarlStarrett

    CarlStarrett Initiate (0) Nov 24, 2012 California

    There's a hearing a week from today in the eviction lawsuit called a trial readiness conference and the trial is 3 weeks from today.
     
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  8. CarlStarrett

    CarlStarrett Initiate (0) Nov 24, 2012 California

    This thread was gathering dust, so i decided that another update was necessary.

    The legal name if the company is Downtown El Cajon Brewing Co., Inc. The corporate status still suspended per the website of the California Secretary of State, so they really have no business filing any pleadings in lawsuits right now. ECBC did file a motion recently in the eviction lawsuit asking permission to file a cross-complaint against the landlord. That is generally not allowed in an eviction lawsuit because of the quick nature of eviction lawsuits. It was probably a delay tactic, but I can't tell from the court's docket if the eviction trial is still going forward on April 5th.

    In other news, the City of El Cajon finally filed a lawsuit against ECBC as well as both of the Meadows brothers. Naming Stephan Meadows makes sense because I think he's guarantor of the loan to the corporation, but I'm not sure why David Meadows is a defendant as well. The lawsuit is 52 pages and costs at least $10 to download a copy, so I passed on that.

    There's some really good jazz/blue music there tonight, so I'm thinking about a pizza and some beer.
     
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  9. HopHead84

    HopHead84 Grand Pooh-Bah (3,144) Nov 29, 2006 California
    Pooh-Bah Society Trader

    Thanks for the update, Carl.
     
  10. MacNCheese

    MacNCheese Initiate (0) Dec 10, 2011 California

    What does it mean that the Corporate status is suspended? Me not know legal mumbojumbo.

    I'm sure David is very happy to be named by the city in a suit.
     
  11. Xul

    Xul Pooh-Bah (2,115) May 18, 2008 California
    Pooh-Bah Society Trader

    It means that they either haven't kept up on yearly filings with the Secretary or State (which take approximately 5 minutes per year and cost under $50) or haven't paid their state taxes ($800/year minimum for CA corps).
     
  12. MacNCheese

    MacNCheese Initiate (0) Dec 10, 2011 California

    So this is bad. Like crossing the streams, bad? "Ray, you said crossing the streams was bad."
     
  13. Xul

    Xul Pooh-Bah (2,115) May 18, 2008 California
    Pooh-Bah Society Trader

    Carl would be more able to answer that from a legal perspective, I'm only familiar with it from a business owner perspective. I've always kept my filings/taxes current, but I've been told by friends who lagged that it's actually very easy to get current on your filings and get paid up (assuming you have the money). Considering ECBC has only been open for less than two years and apparently hasn't turned a profit, they'd likely be looking at a couple hours of work and < $2000 to get back into good standing.

    The fact that they haven't taken the most basic steps to maintain their corporate standing would seem to indicate that they have no chance of surviving their current legal challenges, but stranger things have happened.
     
  14. JRSD

    JRSD Devotee (342) Oct 27, 2006 California

    Suspension of the corporate status could mean that they become personally responsible for the debts rather than being able to hide behind the corporation.
     
  15. CarlStarrett

    CarlStarrett Initiate (0) Nov 24, 2012 California

    Not necessarily, but it can be a fact for a court to consider if a creditor wants to sue the shareholders directly.
     
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  16. CarlStarrett

    CarlStarrett Initiate (0) Nov 24, 2012 California

    Sometimes corporations are suspended to failing to file documents that are required by law such as the updating the information on who are the officers and directors. Sometimes the reasons are more serious such failing to file tax returns or failing to pay taxes. Reinstating could be easy if they just need to file some missing documents, but it could be harder if they haven't paid taxes.

    When a corporation is suspended, it loses its rights, powers, and privileges to conduct business in California. it loses the right to use its business name in California and another company could theoretically take over the name even as we speak. The corporation cannot initiate lawsuits, defend itself against lawsuits, or enforce its legal contracts. If a corporation enters contracts while suspended or forfeited, it can never enforce those contracts unless it obtains relief to d so.

    So the consequences can be quite drastic if they don't take steps soon to revive the corporate status.
     
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  17. MacNCheese

    MacNCheese Initiate (0) Dec 10, 2011 California

    This is probably one of the most education threads on BA ever.
     
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  18. rrryanc

    rrryanc Pundit (884) May 19, 2006 California

    Fixed that for you. In the spirit of education and whatnot.
     
  19. CarlStarrett

    CarlStarrett Initiate (0) Nov 24, 2012 California

    One more minor update. The City of El Cajon "categorically rejected" some type of proposal by ECBC to move the brewing equipment to another location. The next hearing on bankruptcy court is April 15th.
     
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  20. evilc

    evilc Initiate (0) Jan 27, 2012 California

    Haha "we just want to move it"
     
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