382. Valuables being auctioned off, business assets sold, utilities still collecting

Transcript

Speaker 1 0:01

All right . Well , it's been like two weeks since the last update . Long story short , nothing really has happened . We had our proceeding . Yeah , I found out there's already some staffing changes at the studio with the new owner , so I hope they find the management team that they're looking for , whether it be instructors or managers or whomever . All I was told is that they're looking for , whether it be instructors or managers or whomever . Um , all I was told is that they're making some changes and so I hope that , whatever they are , that it's a smooth

Studio update and staffing changes

Speaker 1 0:32

and painless one for both the staff and the ownership . Um , finally heard over the weekend the bank approved the , the amount and so just kind of interesting .

Speaker 1 0:43

So the book when I bought the studio , the book value of the assets was gosh , 40,000 , 38,000 , something like that . And so when the business closed , the buyer said , hey , I'd like to buy the assets from you . I think it's worth around seven . And I said oh , based on my like , depreciation and all that stuff . And I said oh , based on my depreciation and all that stuff , I think the value is probably like $25,000 . So the bank would probably be willing to take $20,000 just to make it smoother , less cost and stuff . So let's pitch

Asset valuation and bank approval

Speaker 1 1:14

the bank at $20,000 . And the buyer said eh , I'm not fully there , let's split it and go to like $12,000 . At the end of the day , the bank that has the SBA loan , they're the ones that have to approve this and they're the ones that receive the funds . So this is not nearly enough to cover all of their losses , but just enough for them to recoup . And so , on their behalf , I came to a value that I think is okay . So I think the bank would accept . And so we submitted that over the weekend . Bank said yep , this looks fine , we will sell the assets to the new owner , for I think it was like $17,000 , $16,000 , $15,000 , something like that . And so now the buyer just has to wire funds and purchase the assets . So that'll be good , and one less thing to think about Still plugging away at the day job .

Speaker 1 2:03

Oh yeah , for the liquidation , the trustee is now keeping us in the loop . So they repossessed some valuable , tangible assets and we told them what we believe the value was and they said okay , well , based on that , here's how much the estate's going to conclude at . And so we dropped off those valuables to the bankruptcy attorney and they told us hey , we're hiring a liquidation company

Bankruptcy liquidation process

Speaker 1 2:34

to sell these . So we're not going to sell them , but we're going to hire someone to do it . I don't know what happens from here . I don't know if they sell it . And then if we said the stuff was worth $5,000 and if they sell it for $6,000 , do we get a credit back ? If we said it was worth $5,000 and they sold it for $4,000 , do we now owe them $1,000 ? I have no idea , but I can't control that and so I can't focus on that .

Speaker 1 2:58

But that's just another interesting thing . We still have to wait for the funds and accounts to settle up , so I don't know how long that'll take , but that's what we've been told . We're still getting calls and emails from the utility companies saying hey , your electricity bill is past due , please sign into your account and send us the money . And I keep responding back like , hey , we've declared bankruptcy , we don't have the funds , please cancel our account , we don't authorize any further collections attempts . And those always come from like one-time phone numbers or like no reply emails . So every time we respond back to them , it doesn't go anywhere . And so I don't know how to tell the people at those

Utility company communication issues

Speaker 1 3:42

utility companies that , like we tapped out like we don't have it , we don't have the money , we don't have the account anymore . So that's just kind of interesting One-way communications to us as the customer . They are not reachable and so we can't tell them . But what will probably happen is they'll forward our business info to collections . Collections people will be more reachable because they buy debts for a fraction of the price and then they need to get to closure on those accounts , and so if I can call , text or email somebody back , I can tell them where things stand .

Speaker 1 4:18

But as of right now they don't . So there's all that . So yeah , nothing really new to report . It's been kind of a slow two weeks . As the estate kind of wraps up , as the items get liquidated , just keep plugging away at the day job . I suppose that's about it . It's a new year , we just got a new president sworn in , and so carry on with life at this point . That's where we're at , that's where we're going . Let's rock and roll .