WorldVentures files Chapter 11 bankruptcy with plans to restructure

By Sarah Lizee

Olympia, Wash., Dec. 24 – Spherature Investments LLC, which does business as WorldVentures, filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Eastern District of Texas on Monday, according to a press release.

WorldVentures has filed customary motions with the bankruptcy court that will authorize, upon approval, its ability to maintain operations in the normal course of business, including the payment of post-petition commissions to WorldVentures representatives, payment of employee wages and payment of vendors and suppliers.

“The impact of the Covid-19 pandemic has caused significant financial distress to our travel and leisure business,” says chief operating officer Michael Poates. “As we map a new path forward, this comprehensive financial restructuring should enable our business to become profitable again and secure our future.”

WorldVentures said it plans to be a healthier company as a result of the restructuring and will continue all day-to-day operations throughout the bankruptcy process, honoring all commitments and travel obligations to its DreamTrips members.

The company is seeking court approval to use the cash collateral of Montgomery Capital Advisers, LLC. Without the immediate use of cash collateral, the debtors would likely have to cease operations, the company said.

According to the petition, the company has $50 million to $100 million in both assets and liabilities.

The company’s largest unsecured creditors are Franklin Street Properties, based in Chicago, with a $1.78 million rent claim; KGS Services LLC, based in Plano, Tex., with a $1.77 million notes payable claim; Phelps Dunbar LLP, based in Dallas, with a $1.76 million professional services claim; Tayjak Enterprises, based in Plano, Tex., with a $1.72 million notes payable claim; and BG Enterprises, LLC, based in Dallas, with a $1.13 million professional services claim.

WorldVentures says it expects to complete the restructuring process and emerge from Chapter 11 bankruptcy protection as soon as possible.

Plano, Tex.-based WorldVentures sells travel and lifestyle community memberships. The Chapter 11 case number is 20-42492.

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