Current posture
FlexShopper is in a post-sale Chapter 11 liquidation, with its unconfirmed plan process moving toward mediation among the Debtors, the unsecured creditors’ committee, warehouse lender Powerscourt Investments 50, LP, and Kasowitz LLP under a certification seeking appointment of a mediator Dkt. 547. The immediate docket focus is therefore resolution of plan-related issues and estate administration rather than an operating reorganization; an interim-fee omnibus hearing is set for September 23, 2026, at 2:00 p.m. ET under the omnibus-hearing order Dkt. 549. The eight affiliated debtors, including FlexShopper, Inc., filed voluntary Chapter 11 petitions on December 22, 2025, beginning with the FlexShopper petition Dkt. 1. The stated catalyst was an investigation into financial misconduct: the chief restructuring officer described forged loan documents, inflated loan-portfolio valuations, and an estimated more-than-$140 million overborrowing under the warehouse facility, followed by a liquidity shortfall for non-operating expenses in the first-day declaration Dkt. 16. At filing, the debtors had approximately $209 million in funded debt, principally the $200 million warehouse facility and a $9 million subordinated note, as described in that declaration. From the outset, the cases…
Updated Aug 14, 2026
Aug 26, 2026
General / Status · 10:00 am et · LSS · 6th Floor Courtroom 2
Certificate of Mailing of Betina Wheelon. Filed by Epiq Corporate Restructuring, LLC. (related document(s)[555]) (Mailloux, Kathryn)
Docket 556 · Aug 17, 2026
Interim Application for Compensation // Second Interim Fee Application of Morris, Nichols, Arsht & Tunnell LLP, as Bankruptcy Counsel for the Debtors and Debtors in Possession, for Allowance of Compensation and for Reimbursement of All Actual and Necessary Expenses Incurred for the period March 1, 2026 to and Including May 31, 2026 Filed by Morris, Nichols, Arsht & Tunnell LLP. Hearing scheduled for 9/23/2026 at 02:00 PM at US Bankruptcy Court, 824 Market St., 6th Fl., Courtroom #2, Wilmington, Delaware. Objections due by 9/4/2026. (Attachments: # (1) Notice # (2) Exhibit A # (3) Exhibit B # (4) Exhibit C) (Davis, Liam)
Docket 555 · Aug 14, 2026
Certificate of Mailing of Betina Wheelon. Filed by Epiq Corporate Restructuring, LLC. (related document(s)[549], [550]) (Mailloux, Kathryn)
Docket 554 · Aug 14, 2026
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