Serendipity Labs is looking to restructure its operations by filing for Chapter 11 bankruptcy after it failed to refinance its debt.
New York-based Serendipity Labs filed for Chapter 11 in the U.S. bankruptcy court for the Northern District of Georgia, which was caused by the company not being able to pay off or refinance a $4 million loan from HALL Group.ย
John Arenas, CEO of Serendipity Labs, said that the company is seeking new investments to pay off its obligations and come out of the bankruptcy. However, if that doesnโt work, he said he would look to sell the company next year.
Arenas added that the company was unable to refinance the loan due to government mandates closing several of its locations.
โThis is a reorganization. It isnโt a liquidation, it isnโt a fire sale, it isnโt a company thatโs ending,โ said Arenas. โItโs a company thatโs using the bankruptcy laws to reorganize itself, to optimize the benefit to creditors, to pay them all, and to move on and continue to operate, which is why these laws were set up.โ
HALL Group led the coworking firmโs Series C investment round, and reportedly refused to extend the loanโs maturity date. However, HALL Group has disputed some of the companyโs statements.
โJohn and Serendipity have made numerous assertions that we do not believe are borne out by the facts,โ a spokesperson for HALL Group stated. โWeโve responded to such assertions in our public filings with the bankruptcy court and welcome review of those filings.โ
