Information for Creditors of Spectrum Link, Inc.
Case Number 21-16403 in the United States Bankruptcy Court for the Central District of California
DEBTOR’S BUSINESS AND DEBT LOAD
The Debtor’s legal business name is Spectrum Link, Inc., but it does business as Spectrumlink. The Debtor states that it utilizes the latest internet service technology with lightning speed and the highest spectrum frequency. The goal of the Debtor was to be the leading internet service industry provider for fast fixed wireless broadband and Wi-Fi services and solutions across the country, according to the Debtor’s website.
Spectrumlink is headquartered in Los Angeles, CA. It provides internet services and VoIP phone services in that area and certain other places in California. Spectrumlink was founded by Bernard Mayfield, who passed away earlier in 2021. The acting CEO of the Debtor is Marilyn Adjangba, who is Mayfield’s sister.
When it filed for bankruptcy, Spectrumlink disclosed that it has just $100,000 – $500,000 in assets against liabilities of $10-50 million. Since that time, the Debtor has admitted that it will not be able to reorganize its business given its overwhelming debt load. Instead, the company is going to sell off its assets and dissolve.
PROCEDURAL STEPS AND UPCOMING DATES
Spectrumlink has gone through a few different procedural steps since filing for bankruptcy. Given its extreme debt, the United States Trustee, which is a bankruptcy watchdog, filed a motion with the Court asking for professionals to be appointed and put in control of the bankruptcy case. As a result of that motion, the Court initially appointed a Chapter 11 Trustee to oversee the case.
After a very short period of time, the Chapter 11 Trustee filed paperwork indicating that having Spectrumlink continue in Chapter 11 would cost more money than it would be worth. After seeing the concerns from both the United States Trustee and the Chapter 11 Trustee about the Debtor’s extreme amount of debt, Judge Vincent P. Zurzolo of the Bankruptcy Court for the Central District of California ordered that the case be converted to Chapter 7.
The purpose of a Chapter 7 bankruptcy case for a company is to allow the company to orderly liquidate its assets and close. There is a meeting that creditors can attend to ask questions about the Debtor’s finances on January 24, 2022. The next day, on January 25th, the Court will hold hearings on proposed sales of the Debtor’s assets.
THE DEBTOR IS ALLEGED TO BE AKIN TO A PONZI SCHEME
There is plenty of information in the public record about the Debtor and its business. Specifically, a Complaint was filed against the Debtor and the Estate of Bernard K. Mayfield, the Debtor’s former CEO, by an investor in the Superior Court of California, Los Angeles County, in May 2021.
The Complaint alleges that Mayfield treated the Spectrum Link business accounts as his own personal funds. It contends that Mayfield used Spectrum Link investments to buy himself real estate and personal property, including vehicles. While the Complaint states that the investor received some monthly payments, it alleges that the investor eventually came to suspect that Mayfield was lying about the progress the company was making in expanding its network.
Allegations in a Complaint are not proven facts and no Court has found that Spectrum Link or Mayfield are guilty of any of the actions alleged. However, the allegations cause concern for all creditors given that the company is now in the process of liquidating and shutting down. While the Chapter 7 bankruptcy case likely will not produce enough money to repay creditors, it is possible that there are other avenues for recovery.
PRLT does not represent Spectrum Link, Inc. 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 Spectrum Link bankruptcy case or anything discussed on this page, please contact us.