Information for Creditors of Division Management dba Eagle Access, LLC
Case Number 22-80896 in the United States Bankruptcy Court for the Northern District of Alabama
DEBTOR’S BUSINESS HISTORY
The Debtor’s legal name is Division Management, LLC but it does business under the name Eagle Access, LLC. According to its website, the Debtor “rents and serves the United States with specialized personnel and state of the art construction hoists.” While the Debtor technically does not put any distance limit on its services, it prefers to work within a 10-hour drive of its base in Florence, Alabama.
Eagle Access “provides, rents, services, erects, or sells” hoists in the United States. The company boasts that its rental and service programs are customizable depending on the job. The Debtor also states that its field techs have “annual safety & skills training.” The company has a clean safety record, according to its website.
The Debtor is a third generation business with roots in construction and heavy equipment since 1965. Indeed, the family of the owner still has businesses providing scaffolds, lifts, and mastclimbers. Eagle Access, though, only does hoists. This specialization has allowed it to provide an uptime average of “over 99.63%” while offering 24-hour service.
THE DEBTOR PLANS TO REORGANIZE
While a lot of information has been filed in the case so far, the bankruptcy papers do not provide a lot of detail on the circumstances leading to the bankruptcy filing. The Debtor does disclose that it has multiple pending lawsuits. Additionally, its 23 unsecured creditors are primarily litigants or potential litigants against Eagle Access, including multiple individuals located in New Orleans, LA.
While we do not know exactly what caused the bankruptcy filing, the Debtor has stated that it intends to use the process to reorganize. That is, Eagle Access plans to continue operating rather than liquidating. So, the company believes that it can balance its assets and liabilities to some extent.
In its filing, the Debtor states that it has roughly $1 million in assets as compared to only $464,000 in liabilities. However, these numbers are somewhat misleading because the litigation creditors are listed as being owed “undetermined” amounts. So, the Eagle Access liabilities may significantly exceed its assets.
WHAT CAN CREDITORS DO?
There is still a lot of uncertainty in this bankruptcy case. The case was only filed on May 26th and a concrete path forward for the bankruptcy case has yet to be publicly filed. Yet, there are actions that creditors can take at this point in order to influence the ultimate outcome of the case.
Bankruptcy laws allow unsecured creditors to work together in order to advocate for repayment of unsecured creditors. In this case, there is not much secured debt. The Debtor reports that it owes around $150,000 to the U.S. Small Business Administration, but that is the company’s only secured debt. So, it seems that the Debtor will be able to provide some recovery to unsecured creditors, even in a worst case scenario.
Unsecured creditors may be interested in forming a committee in this case. A committee would allow the unsecured creditors to hire counsel, which would be paid for by the Debtor, and advocate for the rights of all unsecured creditors. If you have any questions about committee service in the Eagle Access case or bankruptcy generally, please reach out to PRLT.
PRLT does not represent Division Management, LLC dba Eagle Access, LLC or any of its affiliates. The content on this page is provided for informational purposes only. Nothing on this page or this website creates an attorney/client relationship between you and PRLT. Nothing on this page is legal advice. If you have any questions about the Eagle Access bankruptcy case or anything discussed on this page, please contact us.