QLess, Inc., a Pasadena-based SaaS queue management platform serving higher education, local government, and healthcare clients with over 30 million annual visits, filed for Chapter 11 protection under Subchapter V on June 19, 2024 in the District of Delaware (Case No. 24-11395) before Judge Brendan Linehan Shannon. The filing followed a December 2023 shareholder lawsuit by founder Alex Bäcker alleging breaches of fiduciary duties arising from Palisades Growth Capital II’s 2021 recapitalization, which generated $1 million in legal fees within six months and projected $8 million in total litigation costs. Despite $9.1 million in ARR and improving customer retention, the company carried $35–40 million in cumulative operating losses and projected a $5 million net loss for 2024. Palisades and affiliated shareholders provided a $3.5 million junior secured DIP facility at 15% interest, subordinate to Celtic Bank’s $6.25 million first-priority secured debt. The plan was confirmed on September 17, 2024 under §1191(b) Subchapter V cramdown after Bäcker’s disputed ballots caused Class 4 general unsecured claims to reject—excluding disputed ballots, Class 4 unanimously accepted. GUC recovery fell to approximately 10.2% ($75,000 projected disposable income) versus the 61.5% ($300,000 GUC fund) available had Class 4 accepted. The DIP facility converted to New Preferred Shares representing approximately 22% of fully diluted equity, with a $750,000 portion restructured as a three-year administrative expense claim. QLess emerged on September 18, 2024—approximately 91 days after filing—and the case was closed by final decree on March 14, 2025.