Pacific Foods files for Chapter 7 bankruptcy | News
PACIFIC Foods (CNMI) LLC, doing business as IHOP and Ajisen Ramen, has filed for Chapter 7 bankruptcy in federal court.
“Since we acquired IHOP and Ajisen in 2016, we’ve been through three different disasters,” Pacific Foods president Ralph N. Yumul told Variety. He was referring to Typhoon Mangkhut, Super Typhoon Yutu, and the Covid-19 pandemic.
“As a new business, we have no way to recover. “
Yumul, who is also the House leader, told Variety their company was unable to pay multiple vendors.
“We apologize for the inconvenience caused,” he added, acknowledging that further lawsuits would be brought against their company by other unpaid suppliers.
“I understand that,” he said. “We’re not trying to pay just one, we’re trying to pay everyone. I have to pay.”
On Monday, Yumul appeared before Associate Superior Court Judge Kenneth L. Govendo for a hearing in Triple J’s lawsuit against Pacific Foods for non-payment of goods in the amount of $ 10,067.81, including interest.
Triple J, through attorney James R. Stump, filed the lawsuit last year and claimed 28 breaches of contract for various commodities against Pacific Foods CNMI, the former operator of Ajisen and IHOP .
During the hearing, Stump asked Yumul if his company could make payments.
When Yumul told the lawyer his company has filed for bankruptcy, Stump said he would like a copy of the Chapter 7 bankruptcy record.
Judge Govendo, for his part, told the parties that if the federal court approves the bankruptcy request, the local court will follow the instructions of the federal court.
In March 2021, Bank of Guam sued former IHOP Saipan operators in Superior Court and demanded payment of $ 317,238.28.
On June 15, 2021, a Guam-based supplier, Ecolab (Guam) LLC, served Yumul with a complaint for non-payment of rental equipment and merchandise.
According to court documents, Ecolab is suing Pacific Foods for $ 5,218.35.
According to Investopedia, Chapter 7 bankruptcy is sometimes referred to as “run-off” bankruptcy.
“Companies that experience this type of bankruptcy have passed the reorganization stage and have to sell assets to pay their creditors…. The bankruptcy court will appoint a trustee to ensure that creditors are paid in the correct order, following “top priority” rules.
“Secured debt takes priority over unsecured debt in bankruptcy and is the first to be repaid. Loans issued by banks or other financial institutions that are secured by a specific asset, such as a building or expensive machine, are examples of secured debt. Whatever assets and liquidity remain after all secured creditors have been paid, they are pooled and distributed to creditors with unsecured debts.