Judge dismisses Fate Brewing bankruptcy case

DENVER — A U.S. Bankruptcy Court judge has approved dismissal of the Fate Restaurants LLC bankruptcy case. Judge Thomas McNamara issued an order dismissing the case Monday.

Fate, which operated as Fate Brewing Co., shut down operations May 27.

The brewpub filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in Denver, Nov. 1, but continued to struggle financially.

The company’s attempts to assume its lease on its building at 1600 38th St. were opposed by its landlord, its lender and the city of Boulder, who questioned the brewery’s ability to meet obligations of the lease.

Fate filed for dismissal of the case May 13, after coming to the conclusion that successfully emerging from Chapter 11 was unlikely.

“The basis for the filing of a Chapter 11 was to allow Debtor to stabilize its business operations and, hopefully, bring its sales back to prior year levels which were very profitable,” Fate’s attorneys wrote in the May 13 motion. “It is apparent that this will be a difficult and time consuming endeavor and, perhaps, not possible.”

Fate said that it became apparent that claims by federal, state and local taxing authorities made a successful exit from Chapter 11 unlikely.

“Based upon the Proofs of Claim filed by the State of Colorado, the City of Boulder, Boulder County, and the IRS, it is clear that Debtor could not have serviced the requisite debt payments to these taxing authorities through a plan of reorganization given current revenues.”

 

DENVER — A U.S. Bankruptcy Court judge has approved dismissal of the Fate Restaurants LLC bankruptcy case. Judge Thomas McNamara issued an order dismissing the case Monday.

Fate, which operated as Fate Brewing Co., shut down operations May 27.

The brewpub filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in Denver, Nov. 1, but continued to struggle financially.

The company’s attempts to assume its lease on its building at 1600 38th St. were opposed by its landlord, its lender and the city of Boulder, who questioned the brewery’s ability to meet obligations of the lease.

Fate filed for dismissal of the case May 13, after coming to the conclusion that successfully emerging from Chapter 11 was unlikely.

“The basis for the filing of a Chapter 11 was to allow Debtor to stabilize its business operations and, hopefully, bring its sales back to prior year levels which were very profitable,” Fate’s attorneys wrote in the May 13 motion. “It is apparent that this will be a difficult and time consuming endeavor and, perhaps, not possible.”

Fate said that it became apparent that claims by federal, state and local taxing authorities made a successful exit from Chapter 11 unlikely.

“Based upon the Proofs of Claim filed by the State of Colorado, the City of Boulder, Boulder County, and the IRS, it is clear that Debtor could not have serviced the requisite debt payments to these taxing authorities through a plan of reorganization given current revenues.”