Loeb & Loeb Restructuring & Bankruptcy partner Schuyler Carroll spoke with The Real Deal about Richard Verrino’s recent declaration of bankruptcy for two of his companies: a construction consultancy with projects in Manhattan and an LLC in Westchester County. He declared personal bankruptcy in July 2021.
Verrino and his two companies filed for Chapter 7 bankruptcy, meaning a court-appointed trustee will sell his personal and corporate assets to pay his creditors.
“The bankruptcies are a little unusual,” said Schuyler, not only because it is uncommon for companies and their officers to seek relief concurrently, but because Verrino and his companies appear to claim ownership of identical assets.
“These companies might be better off in Chapter 11,” Schuyler told the publication, as the debtor could retain assets and reorganize debt. Lengthy reorganizations, however, can be costly for small companies, he said — a lesson Verrino may have learned when his firm filed for Chapter 11 protection in 2018.Click here to read the article on The Real Deal’s website.