A Loan Portfolio, A Turnkey Restaurant, And A Tuck-In Play That Went Live in the Last 48 Hours

The Situation: Montebello-based Avfund Capital Group Inc., a specialized lender for fix-and-flip residential investors, has filed for Chapter 11.

This is its second filing in a year, signaling deep-rooted issues, including foreclosure actions and multiple judgment liens. The company, founded in 2014, provides high-LTV bridge and construction loans in the competitive Southern California market.

The Opportunity: The core asset here is the loan portfolio itself. For a competing lender or a real estate fund, this is a chance to acquire a book of 100+ notes on distressed properties at a significant discount. The underlying assets (fix-and-flip projects) could offer substantial recovery upside, especially in a market where property values remain high.

The Playbook: The winning strategy is an asset purchase agreement to acquire the loan portfolio while leaving the company's legal and tax liabilities behind in the Subchapter V estate. Key risks include the validity of the liens and the true valuation of the underlying real estate.

Due diligence should focus on a sample audit of the loan files to assess quality and recovery potential. An interested party should contact debtor's counsel, Law office of Robert S Altagen, APC, to express interest.

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The Situation: Zomano Cafes, Inc (d/b/a Cuizine Restaurant & Lounge), an upscale restaurant and live music venue on Florida's Space Coast, has filed for Chapter 11. The company cites rising labor/food costs and a post-holiday liquidity crunch as the primary drivers.

The goal of the filing is to renegotiate the commercial lease on its 4,800 sq ft facility.

The Opportunity: This is a classic turnkey opportunity. A local restaurant operator or hospitality group can acquire a fully built-out restaurant, lounge, and kitchen in a prime tourist location.

The most valuable assets include the liquor license, the established location, and the seating capacity for ~150 guests. The Subchapter V filing provides a clear path to assume the lease under more favorable terms.

The Playbook: The move here is to negotiate with the debtor and the landlord to structure a deal for asset assumption. A buyer could acquire the equipment and license for a modest sum, contingent on securing a new, more affordable lease.

The main risk is the landlord's willingness to play ball. Interested parties should contact debtor's counsel, Latham Luna Eden & Beaudine LLP, to initiate discussions about an asset purchase and lease assumption.

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The Situation: Fred Hamilton Contracting Inc., a residential and commercial painting contractor serving the booming Austin suburbs, has filed for Chapter 11. The company holds significant debt with the SBA and alternative lenders, a common scenario for small contractors. Having recently relocated from New York, the business likely faced cash flow issues while trying to scale in a new, competitive market.

The Opportunity: This is a prime tuck-in acquisition for a larger regional painting or general contractor. The key assets are not the equipment, but the established customer list and the foothold in the lucrative Austin market. The Subchapter V filing allows a buyer to acquire these assets cleanly, leaving the SBA and other debts behind.

The Playbook: The strategy is a simple asset purchase of the customer list, trade name, and equipment for an estimated $20K-$30K.

The biggest risk is customer retention, as relationships may be tied to the founder. To mitigate this, a buyer should structure a short-term consulting or transition agreement with the founder, Fred Hamilton Emery. Interested parties should contact debtor's counsel, Nguyen Law, PLLC, to submit a letter of intent.

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