Omega Sports submits bankruptcy reorganization plan | Local
“The debtor should be able to pay its operating expenses and generate sufficient disposable income and profit to fund the plan,” according to the filing.
Omega’s financial analysis projects have total revenue of $ 10.3 million in fiscal 2021, $ 13 million in fiscal 2022, $ 14.7 million in fiscal 2023 and $ 16 million for fiscal 2024.
Of these amounts, he forecasts that 16.7% will come from online sales in 2021, as well as 16.5% in 2022, 17.6% in 2023 and 18.5% in 2024.
He projects a loss of $ 1.12 million in 2021, a loss of $ 33,000 in 2022, a profit of $ 318,000 in 2023 and a profit of $ 726,000 in 2024.
“This plan is expected to result in payments to creditors equal to or greater than those creditors would receive under Chapter 7” – that is, when a company applies for permission to liquidate its assets.
Fidelity owed $ 1.26 million on a line of credit and $ 728,385 for a term loan at the time of filing for bankruptcy. American Express owed $ 111,671.
Omega has requested an additional three years – until October 8, 2024 – to pay off the two Fidelity credit vehicles.
Unsecured creditors, including commercial creditors, sellers and former owners, owe a total of $ 2.8 million. The Carlocks say they owe $ 1.41 million for loan advances made to fund Omega’s operations.