StopLoss, LLC

Case No. 26-50049 · Texas Southern · Petition Date Feb 12, 2026

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StopLoss, LLC Bankruptcy Case

StopLoss remains in chapter 11 under final DIP-financing and cash-collateral authority, with the available record showing no confirmed plan or other court-approved exit path. The Louisiana disaster-recovery and remediation business, formed as a joint venture in 2023, entered chapter 11 on February 12, 2026; the supplied filings do not establish a more specific precipitating event, so the case is best understood at present through the liquidity and control framework adopted after filing.

That framework was fixed in May, when the court authorized up to $5.75 million of multi-draw term loans from Twelve Bridge Capital and 431 KW, including $2 million made available at the interim stage. The Final DIP Financing OrderDkt. 203 grants the lenders superpriority claims and priming liens on substantially all estate property, subject to the professional carve-out and specified existing liens, and permits consensual use of cash collateral. Funding remains budget-controlled, with updated 13-week forecasts, biweekly financial and receivables reporting, and a 15% permitted upward variance for operating disbursements. The lenders also retain credit-bid rights, leaving a sale or refinancing as potential—but not yet established—paths for repayment.

The latest substantive development is claims litigation rather than a plan milestone: Insured Advocacy Group is seeking to force arbitration of the debtors’ objection to its proof of claim under a prepetition assignment agreement and arbitration addendum, after an earlier arbitration was terminated for nonpayment of fees, according to the Motion to Compel ArbitrationDkt. 312. No future hearing or plan timetable appears in the supplied record, leaving the immediate posture centered on operating within the DIP budget and resolving contested claims while the debtors’ ultimate restructuring path remains open.

Updated Jul 18, 12:12 PM ET

Latest development

SaleMay 27, 2026

Court approves Pensacola property sale to Blackhawk 82nd

The court authorized StopLoss to sell the Pensacola property to Blackhawk 82nd LLC partially free and clear of liens and to execute an assignment of claims from the Olinger parties. Under the sale and claims-assignment order, the buyer takes subject to specified assumed liens, real-estate taxes and assessments not yet due at closing, prorated 2026 taxes, and future taxes and assessments.

GrayStreet Management’s and GrayStreet Broadway’s liens will attach to the net sale proceeds, which StopLoss must hold as restricted cash. The debtors cannot use or distribute that cash until the court approves a compromise among StopLoss and the two GrayStreet entities. The order overruled all remaining objections with prejudice, granted Blackhawk the protections of a good-faith purchaser under section 363(m), and became effective immediately without the customary 14-day stay. The transaction therefore can close while the competing entitlement to proceeds remains reserved for a later court-approved resolution.