Carolina Sleep Shoppe, LLC filed a Subchapter V Chapter 11 in April 2024. Despite expectations of a consensual plan, no creditor cast a ballot, resulting in a non-consensual cramdown confirmation under § 1191(b). The Debtor proceeded to substantially consummate the plan, pay all administrative expenses, and begin distributions—particularly to its only secured creditor, the SBA.
The Fourth Circuit’s recent unpublished opinion in Front Row Motorsports v. DiSeveria is, on the surface, a straightforward contract dispute arising from an indemnity agreement. But behind the curtain of corporate formalities is the long shadow of In re BK Racing, the bankruptcy case that has become the NASCAR equivalent of a Russian nesting doll—each layer revealing deeper dysfunction.
