Cornett Hospitality, LLC Files for Bankruptcy Protection

Richmond, Virginia. Cornett Hospitality, LLC (“Cornett Hospitality”) filed for protection under chapter 11 of the Bankruptcy Code as the restaurant operator struggled to reorganize its debt. The restaurateur’s holdings include a dozen Hooters and Topeka’s Steakhouse locations in Virginia, West Virginia, and Pennsylvania. Cornett Hospitality’s bankruptcy petition indicated that it has 200 to 999 creditors, assets estimated at $1 million to $10 million, and liabilities estimated at $1 million to $10 million. Ronald Page is a corporate bankruptcy attorney based in Richmond, Virginia available to represent creditors of the Cornett Hospitality bankruptcy.

The bankruptcy case identified as case number 12-36693 is to be presided over by Chief Judge Douglas O. Tice, Jr. Proposed counsel for Cornett Hospitality is Bruce Arkema of the law firm of DurretteCrump PLC.

Cornett Hospitality listed its 20 largest unsecured creditors as:

1. Advance Me, Inc., Loan $313,151.00
2. Bank of Virginia, Land and improvements at 316 Vanburen Ridge, White Sulpher Springs, West Virginia (No equity after senior liens), $1,379,000.00 secured)
3. Bank of Virginia, Loan $450,000.00
4. Commonwealth of Virginia, Sales Tax $272,265.83
5. Commonwealth of Virginia, Withholding Tax $109,620.18
6. Cooley and Associates, Trade Debt $183,432.41
7. Henrico County, Personal Property Taxes, $87,712.55
8. Hooters of America, Inc., Trade Debt $396,927.80
9. Internal Revenue Service, 941 Taxes to BB&T, $384,935.87
10. Mountain Eagle Distributors, Trade Debt $155,322.47
11. PPJC LLC, Loan $192,408.75
12. Spirit Financial Acquisitions, All fixture, furniture and equipment, and a mortgage leasehold interest in, Hooters stores in Wilkins, Pennsylvania, York, Pennsylvania and Chester, VA, $3,000,000.00 ($9,392.43 secured)
13. Spirit Realty Capital, Rent $178,621.55
14. Spotts Fain, Legal Fees $97,894.26
15. Stellar One Bank, Furniture, fixture and equipment at Beckley Hooter’s Store, $210,000.00 ($105,362.29 secured)
16. US Foods, Inc., Loan $490,861.34
17. US Foodservice Roanoke, Trade Debt $239,595.44
18. Whitlock, John, Second Deed of Trust on Land and Improvements at 5908 Three Chopt Road, Richmond, Virginia 23226, Owned by J. Philip Cornett and Stacie L. Cornett, $385,000.00 ($0.00 secured)
19. YB Atlantic, LLC, Trade Debt $184,320.53
20. Yellow Stone Capital, LLC, Loan $109,920.00

With offices in Richmond, Virginia, Ronald Page, PLC has extensive experience representing secured and unsecured creditors in bankruptcy proceedings. Please contact Ronald Page, a Richmond Virginia Bankruptcy Attorney, if you need assistance protecting your interests in Cornett Hospitality’s bankruptcy.