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

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Episode Transcript

Speaker 1 (00:01):
All right.
Well, it's been like two weekssince the last update.
Long story short, nothingreally has happened.
We had our proceeding.
Yeah, I found out there'salready some staffing changes at
the studio with the new owner,so I hope they find the
management team that they'relooking for, whether it be

(00:22):
instructors or managers orwhomever.
All I was told is that they'relooking for, whether it be
instructors or managers orwhomever.
Um, all I was told is thatthey're making some changes and
so I hope that, whatever theyare, that it's a smooth and
painless one for both the staffand the ownership.
Um, finally heard over theweekend the bank approved the,
the amount and so just kind ofinteresting.

(00:43):
So the book when I bought thestudio, 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 mydepreciation and all that stuff,

(01:04):
I think the value is probablylike $25,000.
So the bank would probably bewilling to take $20,000 just to
make it smoother, less cost andstuff.
So let's pitch the bank at$20,000.
And the buyer said eh, I'm notfully there, let's split it and
go to like $12,000.
At the end of the day, the bankthat has the SBA loan, they're
the ones that have to approvethis and they're the ones that

(01:26):
receive the funds.
So this is not nearly enough tocover all of their losses, but
just enough for them to recoup.
And so, on their behalf, I cameto a value that I think is okay
.
So I think the bank wouldaccept.
And so we submitted that overthe weekend.
Bank said yep, this looks fine,we will sell the assets to the
new owner, for I think it waslike $17,000, $16,000, $15,000,

(01:49):
something like that.
And so now the buyer just hasto wire funds and purchase the
assets.
So that'll be good, and oneless thing to think about Still
plugging away at the day job.
Oh yeah, for the liquidation,the trustee is now keeping us in
the loop.
So they repossessed somevaluable, tangible assets and we

(02:12):
told them what we believe thevalue was and they said okay,
well, based on that, here's howmuch the estate's going to
conclude at.
And so we dropped off thosevaluables to the bankruptcy
attorney and they told us hey,we're hiring a liquidation

(02:33):
company 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 fromhere.
I don't know if they sell it.
And then if we said the stuffwas worth $5,000 and if they
sell it for $6,000, do we get acredit back?
If we said it was worth $5,000and they sold it for $4,000, do
we now owe them $1,000?
I have no idea, but I can'tcontrol that and so I can't

(02:57):
focus on that.
But that's just anotherinteresting thing.
We still have to wait for thefunds and accounts to settle up,
so I don't know how longthat'll take, but that's what
we've been told.
We're still getting calls andemails from the utility
companies saying hey, yourelectricity bill is past due,

(03:18):
please sign into your accountand 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 furthercollections attempts.
And those always come from likeone-time phone numbers or like
no reply emails.
So every time we respond backto them, it doesn't go anywhere.

(03:38):
And so I don't know how to tellthe people at those utility
companies that, like we tappedout like we don't have it, we
don't have the money, we don'thave the account anymore.
So that's just kind ofinteresting One-way
communications to us as thecustomer.
They are not reachable and sowe can't tell them.

(03:58):
But what will probably happenis they'll forward our business
info to collections.
Collections people will be morereachable because they buy
debts for a fraction of theprice and then they need to get
to closure on those accounts,and so if I can call, text or
email somebody back, I can tellthem where things stand.
But as of right now they don't.

(04:19):
So there's all that.
So yeah, nothing really new toreport.
It's been kind of a slow twoweeks.
As the estate kind of wraps up,as the items get liquidated,
just keep plugging away at theday job.
I suppose that's about it.
It's a new year, we just got anew president sworn in, and so

(04:44):
carry on with life at this point.
That's where we're at, that'swhere we're going.
Let's rock and roll.