SOPA, Inc. is in an early Chapter 11 posture focused on stabilizing case administration, preserving insurance coverage, and standing up professional infrastructure while the debtor addresses litigation-driven pressure from an $11.85 million former-employee judgment. The debtor filed on May 12, 2026 in the Southern District of Texas with estimated assets and liabilities each in the $10 million to $50 million range, 1 to 49 creditors, and an expectation that funds would be available for unsecured creditors, while identifying Thomas O'Connor as the largest scheduled unsecured creditor with a disputed $11.85 million claim in the voluntary petitionDkt. 1.
The stated restructuring trigger was the judgment and related receivership pressure, with the debtor using Chapter 11 to stay litigation enforcement while preserving enterprise control. Early relief has centered less on new-money financing or a sale process and more on keeping the operating and governance framework intact: the debtor sought authority to maintain D&O and management liability insurance, honor a premium-financing arrangement with IPFS Corporation, and continue ordinary-course insurance payments, including approximately $27,795 outstanding as of the petition date under the financing arrangement described in the insurance motionDkt. 15. The court has now entered a final order authorizing continuation of those insurance programs, payment of related obligations, renewal or purchase of coverage, and continued use of premium financing arrangements in the ordinary course through the final insurance orderDkt. 59.
The current docket indicates an administrative build-out phase rather than a filed plan or sale track. On June 11, the debtor moved to retain bankruptcy counsel and tax advisors, establish interim compensation procedures for retained professionals, and create ordinary-course professional procedures covering non-restructuring advisors such as corporate, securities, and litigation counsel through the ordinary-course professionals motionDkt. 57 and interim compensation procedures motionDkt. 58. Near-term milestones are claims and creditor-process oriented: Stretto served notices setting the Section 341 meeting for June 18, 2026, and the general claims bar date for September 16, 2026, as reflected in the supplemental certificate of serviceDkt. 60.
