OAKLAND, Calif., Aug. 3, 2015 /PRNewswire/ -- Metropolitan Coffee and Concession Company, LLC ("Metropolitan") announced today that it filed last Friday a Motion to Convert its Chapter 11 case to a case under Chapter 7.
The company operated four Peet's Coffee & Tea licensed stores under an exclusive permit within the Bay Area Rapid Transit (Bart) District. Under the direction of Harry R. Kraatz, the Court appointed "Responsible Party" and Chief Restructuring Officer, Metropolitan successfully sold all of its kiosks assets to Boundless Enterprises, LLC dba Scooter's Coffee ("Scooter's"). That sale has closed, and Scooter's is operating its coffee kiosks in BART stations.
Counsel for the Debtor, Gregory A. Rougeau of Diamond McCarthy, LLP, indicated in a Motion to Convert Metropolitan's Chapter 11 reorganization to a Chapter 7 that the Debtor was encouraged by numerous creditors to propose a plan of liquidation (the Debtor retains its litigation claims against former officers, directors and third parties, its equity interest in an affiliate restaurant entity here in San Francisco, and receives revenue from ATM machines), but Metropolitan concluded, given the time and expense associated with plan formulation and confirmation, and after conferring regarding the matter with the United States Trustee, that the remaining assets in the estate should be administered by a Chapter 7 Trustee.
The Chapter 11 case number assigned by the United States Bankruptcy Court for the Northern District of California is 14-44242.
More information about the case may be obtained from the Clerk of the United States Bankruptcy Court for the Northern District of California. Information regarding the reorganization may also be obtained from Gregory A. Rougeau, Esq., the Companies' counsel of record, at the following number: (415) 692-5200.
About Harry R. Kraatz:
Mr. Kraatz, is President of a privately held crisis management and turn-around consulting firm. In such capacity, he has provided consulting services and DIP financing for numerous finance, manufacturing and retailing companies including: Montgomery Medical Ventures, Commonwealth Associates, Westminster Capital, Liberty Travel, Shearson Financial Network, E3 Biofuels, Swensen's Ice Cream Company, Aca Joe Inc., Finet Holdings Company, Zapworld.com, Positron, Worldwide Wireless, Java Detour Inc., Fresh Choice Inc., MFM industries and others. Mr. Kraatz has held various positions including Vice Chairman of the Board of Commercial Bank of San Francisco and Chief Executive Officer of Finet Holdings Corporation. He has also served as the Chief Restructuring Officer and Responsible Individual for numerous Chapter 11 proceedings. He has also been appointed by the United States Bankruptcy, Court Southern District of New York as Liquidating Trustee for Redsky Interactive, Inc.
About Diamond McCarthy, LLP
Diamond McCarthy is a national litigation boutique practicing in complex and high-stakes business cases. Mr. Rougeau is a partner at Diamond McCarthy, specializing in complex bankruptcy cases, reorganizations, workouts, and related litigation.
SOURCE Metropolitan Coffee and Concession Company, LLC