With the amount of money it owes dwarfing the value of its assets, Bowlski’s alley in El Jebel, Colo., has proposed a bankruptcy exit plan that hinges on it remaining in business and receiving creditor approval, the Aspen Times reported. “The Debtor (Bowlski’s) believes that the Plan, as proposed, is feasible,” said the proposed plan. “The funding for the plan will come from the debtor’s continued operations.” A confirmation hearing for the plan is scheduled for July 28 in Denver, where certain creditors will vote on the plan, which also would need the court’s blessing. Bowlski’s declared bankruptcy Jan. 2 in Denver after a disagreement with its landlord, Crawford Properties. The chapter 11 filing “was prompted by a mix of issues,” the exit plan said. “The COVID pandemic caused the shutdown of the business, followed by operational restrictions, that caused cash flow issues for the debtor. The problem was compounded when the sprinkler system at the debtor’s leased premises failed, causing the business to be shut down for a period of time. The second shutdown further compounded the cash flow crisis. Moreover, the cash flow issues from the COVID restrictions left the debtor with limited cash to handle the shutdown caused by the issues with the leased premise’s sprinkler system.”
