Arsenal is in a confirmed liquidation posture, with the operating restructuring resolved through a Subchapter V liquidation plan confirmed in May 2023 and remaining value channeled through post-confirmation trust mechanics rather than a go-forward reorganization. The case began on January 26, 2023, when Arsenal Intermediate Holdings, LLC filed Chapter 11 after a rapid deterioration following its December 2021 acquisition by BR Intermediate Holdings, LLC; the first-day declaration describes post-acquisition disputes, alleged pre-closing misrepresentations, revenue falling from $474,000 to $77,000 during 2022, a roughly 95% customer-base decline, and workforce reductions that left the business unprofitable Wyse First Day DeclarationDkt. 2.
The debtor entered the case with a relatively compact unsecured capital stack, including about $1.8 million of unsecured intercompany debt, $240,000 of trade debt, and approximately $330,000 of accrued payroll, tax, and insurance-related obligations, while seeking a $2.25 million DIP facility from BR Intermediate to fund operations, administrative costs, customer transition work, and an orderly sale and plan process Wyse First Day DeclarationDkt. 2. That strategy moved quickly from stabilization to liquidation: Arsenal filed its Subchapter V plan in May 2023, with the plan structure centered on distributing remaining value and preserving estate causes of action for a liquidating trust Chapter 11 PlanDkt. 280.
The court confirmed the amended joint Chapter 11 plan of liquidation on May 23, 2023, finding the plan feasible, proposed in good faith, and in creditors’ best interests, and approving the transfer of unreleased causes of action to the Liquidating Trust while leaving ERISA-related actions for the Department of Labor . With confirmation entered and no current hearing calendar provided in the context pack, the case now reads as a post-confirmation liquidation and claims-administration matter rather than an active operating turnaround.
