SQRL Service Stations LLC is converted its Chapter 11 bankruptcy into Chapter 7 after its trustee determined that there is “no realistic hope of selling this business as a going concern or of a successful reorganization,” according to court documents from the U.S. Bankruptcy Court for the Northern District of Texas in Dallas entered Nov. 14.
SQRL Service Stations LLC filed for voluntary Chapter 11 bankruptcy on Aug. 16 with more than $1.2 billion in debt, according to court documents.
Anne Burns, SQRL’s bankruptcy trustee appointed on Nov. 4, said that she and her counsel “met with representatives of Gas Hub Investments LLC (the entity that apparently owns 100% of the membership interest in the Debtor) through its counsel and its principal, Mr. [Jamal] Hazim,” court documents revealed.
Court documents reveal that the bankruptcy estate “has no bank account, no income, and its assets (primarily the scheduled leases for 406 gas stations across the United States) are of questionable value.”
Gas Hub acquired all the membership interests in SQRL and SQRL Holdings on April 5. “Shortly thereafter, SQRL began breaching the leases by failing to pay the rent due for April 2024 and for subsequent months,” according to court documents.
A Texas federal bankruptcy court granted the landlord of nearly 30 SQRL fuel station and convenience store locations authorization to evict Gas Hub Investments LLC from 18 of its c-stores in several states, including Oklahoma, Arkansas, Texas and Florida.
The court approved the shift of the case from Chapter 11 to Chapter 7 on Nov. 15.
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