StopLoss remains in Chapter 11 under final authority for a $5.75 million multi-draw DIP facility, while its immediate focus has shifted to preserving and recovering operating assets rather than advancing a disclosed plan or sale milestone. The case began on March 20, 2026, but the supplied record does not establish a specific filing precipitant. By May 14, the court had approved financing from Twelve Bridge Capital and 431 KW, including $2 million made available at the interim stage, consensual use of cash collateral, priming liens on substantially all estate assets subject to specified senior collateral interests and exclusions, and superpriority claims. The financing remains subject to budget controls, reporting obligations, and a 15% cumulative permitted-variance test under the Final DIP Financing OrderDkt. 203.
June results show that activity is concentrated in the lead debtor. StopLoss reported $1.43 million of receipts, $1.13 million of disbursements, and $303,142 of net income for the month, ending June with $1.49 million of cash, although its cumulative loss since filing was $1.13 million; the report also recorded $2.62 million of postpetition payables attributable to the DIP loan and no current full-time employees in the June Monthly Operating ReportDkt. 323. The other reporting affiliates were largely inactive: StopLoss Response Services, TM36, and StopLoss Logistics each reported no June receipts or disbursements, while StopLoss Specialists reported no receipts and only $150 of disbursements in their respective monthly operating reportsDkt. 324, TM36 reportDkt. 326, Specialists reportDkt. 325, and Logistics reportDkt. 327.
The near-term contested issue is asset recovery. On July 23, TM36 sought emergency turnover of vehicles, heavy equipment, generators, and fencing allegedly held by Jacob Dean Nelson following a payment dispute between Nelson and the debtors’ asset-recovery contractor. The debtors assert that Nelson has no direct claim against them and that continued possession risks depreciation, transfer, or loss; the Emergency Turnover MotionDkt. 328 is set for hearing on August 5. Until a plan or sale process emerges, the disclosed restructuring path remains an operating and asset-preservation case funded through the DIP facility.
