By: Mary Ann Pekara
February 07, 2011
Detroit-area restaurateur Matt Prentice has filed for Chapter 7 bankruptcy, describing the decision as "fall out" from when his restaurant group had to re-organize in 2009.
The Prentice Restaurant Group was sold in 2009, but Prentice still manages it, according to WXYZ.com. Much of the debt on his Chapter 7 bankruptcy filing appears to be linked to the restaurant group, which suffered from declining business prior to the sale. He said that the filing should not affect the operations of the group.
His filing listed $4.9 million in liabilities and $256,555 in assets, the latter of which is comprised of his home and a few thousand dollars' worth of personal belongings. His liabilities are mostly composed of $1 million owed to the IRS and $3.4 million owed to unsecured creditors, Crain's Detroit Business reports. The creditors holding the largest unsecured claims against Prentice are Chase Bank and U.S. Bank Trust, to which he owes $1.3 million and $1.1 million, respectively.