New details in the M&M Environmental Group LLC’s Chapter 7 bankruptcy show it has $8.4 million in debts.
The Conway firm that provided environmental services to the oil and gas industries filed for bankruptcy liquidation last month, but it didn’t list many financial details. The amended filing reports M&M has $3.2 million in assets. (See M&M Cleanup Company Meets Messy End.)
M&M Environmental, if you recall, fell into receivership in February after the relationship between the company’s owners became so strained that they couldn’t agree on whether to file for bankruptcy.
The bankruptcy filing by the company’s receiver, attorney Charles Coleman of Wright Lindsey & Jennings LLP of Little Rock, shows Centennial Bank of Conway is the biggest creditor, owed about $4.3 million. That debt is secured by rolling stock, equipment and accounts receivable. M&M owes another $2.7 million to 149 companies that have unsecured claims.
M&M reported its gross revenue was $6.3 million in 2015.
The bankruptcy comes a little more than a year after Omega Capital of Tulsa bought a majority interest in Sam McFadin’s M&M Environmental Oil Services LLC of Conway for $7 million in December 2014. The companies gave the combined firm a similar name, M&M Environmental Group.
It wasn’t long before the relationship between Omega Capital and McFadin soured. McFadin was fired as CEO in October, but he remained on the board of directors. The M&M Group accused him of fraud, misconduct and other wrongdoing in a lawsuit against him in Faulkner County Circuit Court.
McFadin denied the allegations and filed a counterclaim accusing M&M and Omega Capital of breach of the employment agreement, defamation and more.
That case has been put on hold as a result of the bankruptcy.