SQRL Service Stations LLC filed for voluntary Chapter 11 bankruptcy on Aug. 16 with more than $1.2 billion in debt, according to court documents from the U.S. Bankruptcy Court for the Northern District of Texas in Dallas.
A status conference, which is a court-ordered meeting with a judge, regarding the Chapter 11 filing of SQRL Service Stations will take place on Thursday, in the United States Bankruptcy Court in Dallas.
“SQRL and its owner, Gas Hub Investments LLC (Gas Hub), have repeatedly and improperly frustrated the Landlords’ efforts to obtain possession of their properties that are being wrongfully possessed by SQRL,” court documents said.
According to court documents, the bankruptcy, initiated by Jamal Hizam, lists the estimated number of creditors between 200 and 999. SQRL Service Stations “requests relief in accordance with the chapter of title 11,” according to court documents. Hizam owns Gas Hub Investments, Baton Rouge, Louisiana.
SQRL’s bankruptcy petition features a list of creditors, including Blue Owl Capital, New York, and the Alabama Department of Agriculture, Montgomery, Alabama.
Court documents entered Sept. 4, reveal that 30 landlords of the SQRL convenience-store chain want out of Chapter 11 and are urging the Texas federal bankruptcy court to let them “obtain possession of the properties.” The preliminary hearing to be conducted on Sept. 12 seeks to address this request, according to court documents.
Gas Hub acquired all the membership interests in SQRL and SQRL Holdings on April 5. “Shortly thereafter, SQRL began breaching the leases by failing to pay the rent due for April 2024 and for subsequent months,” according to court documents.
One month later, Gas Hub Investments tried to force SQRL into Chapter 7 bankruptcy protection, claiming that SQRL owes it more than $3 million in unpaid rent, court documents show.
CSP reached out to several attorneys working on the case but did they did not immediately respond to the requests.
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