Flipcause Inc

Chapter 7 · Sale Process

Case No. 25-12246DelawarePetition date Dec 19, 2025

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Flipcause Inc Bankruptcy Case

Case summary

Flipcause remains in Chapter 11 on a sale-oriented restructuring path, but its initial cash-collateral request is no longer operative, and the supplied record identifies neither a DIP facility nor current court-approved postpetition liquidity authority. The nonprofit-focused SaaS and payment-processing provider filed on December 19, 2025, after a multiyear sale and recapitalization effort failed to produce a binding transaction. Its liquidity crisis accelerated when the California Attorney General issued a cease-and-desist order restricting operations and Stripe terminated processing services on December 4, imposed a 100% reserve hold, and froze approximately $1.1 million, leaving Flipcause unable to process client transactions or generate its ordinary fee revenue, as detailed in the first-day declarationDkt. 4.

At filing, Flipcause sought to preserve its platform and going-concern value while pursuing a section 363 sale. Rather than obtain new-money DIP financing, it asked to use subscription and processing fees under a 13-week budget to fund payroll, platform costs, and other essential operations; the debtor said nonprofit donation funds would remain segregated. The proposed adequate-protection package relied on replacement liens and an asserted equity cushion, with aggregate disbursements permitted to vary up to 10% under the proposed interim order, according to the cash-collateral motionDkt. 11.

That liquidity strategy became contested when Grand Avenue Investments, the senior secured noteholder asserting liens on substantially all assets, argued that Flipcause was non-operational, lacked a replacement processor and revenue-generating capacity, and could not adequately protect its collateral. Grand Avenue sought tighter budget controls, weekly reporting, monthly adequate-protection payments, and a superpriority claim if use were allowed in its cash-collateral objectionDkt. 49. A chapter 11 trustee was subsequently appointed and withdrew the motion without prejudice; with no financing order identified in the supplied record, the case’s current path is a trustee-led administration rather than the debtor’s original cash-collateral-funded sale process.

AI-generated summary. Check the cited filings before relying on it.Updated Jul 30, 4:27 AM ET

Latest developments

SaleMarch 18, 2026

Court approves Flipcause asset sale to S4NP

The court approved Flipcause’s sale of substantially all assets to S4NP Corporation for $400,000 in cash plus assumed liabilities, contract cure payments capped at $50,000 and a post-closing retained-client revenue adjustment. Under the Sale Order and attached APA, S4NP acquires the operating assets while Flipcause retains cash, bank deposits, pre-closing tax refunds and specified litigation claims, including claims involving Stripe, insiders, Grande Avenue Investments and service providers.

S4NP assumes only specified post-closing contract, employee and tax obligations; funded debt, pre-closing liabilities and obligations involving employees who do not transfer remain with the estate. The assets transfer free and clear, assigned-contract counterparties that missed the March 12 cure-objection deadline are bound to the noticed cure amounts, and the court granted S4NP good-faith purchaser and no-successor-liability protections. Waiver of the Bankruptcy Rules 6004(h) and 6006(d) stays permits immediate consummation, moving the case from sale process to execution while preserving cash and litigation claims for the estate.

Key professionals

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Investment Banker

SC&H Group, Inc.

Bankruptcy Counsel

Cole Schotz P.C.

Bankruptcy Counsel

Gellert Seitz Busenkell & Brown, LLC

Bankruptcy Counsel

Potter Anderson & Corroon LLP