Florida Contractor Files for Chapter 11 Bankruptcy Amid Multiple Lawsuits

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South Coast Equipment LLC, a Miami-based contractor specializing in land clearing, demolition, excavation, and equipment rentals, has filed for Chapter 11 bankruptcy. The 11-year-old company, which encountered financial difficulties on several major projects, petitioned for reorganization on September 3, 2024, in U.S. Bankruptcy Court in Miami.

Financial Struggles and Lawsuits

According to the bankruptcy filing, South Coast Equipment lists over $1.2 million in debt and $618,000 in assets. The company is seeking to restructure its debt following financial setbacks from two key projects. One of the major issues stems from non-payment for a project it worked on for Landmark Structural and Onyx, while the other resulted in litigation with CJM Construction, a Deerfield Beach-based contractor.

The legal dispute with CJM Construction centers on pandemic-related delays and a 300% spike in material costs that affected a project South Coast Equipment was involved in. Court records from Broward County show that CJM Construction filed a lawsuit last year, which led to a judgment of $82,234 against South Coast Equipment in May 2024.

Creditors and Debts

The company's largest creditor is the U.S. Small Business Administration (SBA), with a $717,000 partially secured claim and $435,000 in unsecured debt. Other significant creditors include H&M Development from Aventura ($122,000), CJM Construction ($82,000), Fortline from Dallas ($55,000), and Jacob Equipment from Miami (nearly $46,000).

South Coast Equipment's assets are primarily in construction equipment, with $6,000 in cash held in a South State Bank business checking account. The company has generated $350,000 in revenue so far this year, compared to $1 million in 2023 and $2.2 million in 2022. The company attributed its declining revenue to project-related challenges.

Legal History and Bankruptcy Decision

In addition to its financial difficulties, South Coast Equipment has faced multiple lawsuits. Since 2023, four of its listed creditors have sued the company. Miami-Dade County Court records show that American Express, Herc Rentals, and Cemex Construction Materials Florida all filed lawsuits, with judgments awarded in favor of the creditors. An open lawsuit filed by Fortline is still pending.

The decision to file for bankruptcy came after South Coast Equipment's attorney, Chad Van Horn, advised the company to file for Chapter 11 protection as a way to reorganize its debts and pay back its creditors.

Moving Forward

The bankruptcy filing was signed by David Presmanes, the company's president and sole stakeholder. As South Coast Equipment navigates the Chapter 11 process, it aims to restructure its debts and recover from the financial challenges tied to its past projects.

While the company’s attorney, Chad Van Horn, was not immediately available for comment, the court filings show that South Coast Equipment will continue operating as it seeks to resolve its financial obligations.