MELBOURNE, FL, June 29, 2023 – In a troubling development, Melbourne-based company Property Registration Champions (Prochamps), once a front-runner in the field of technology-driven property registration and compliance, has announced that it is filing as an assignee for the benefit of creditors, also known as an ABC. This drastic measure underscores the company’s financial woes, despite the assurances given by its leadership in the past.
An assignee for the benefit of creditors (ABC) is a method of liquidation that companies resort to when they can no longer meet their financial obligations. In essence, it involves the debtor company relinquishing its assets to a third-party assignee, who will then proceed to liquidate them for the purpose of paying off the company’s creditors. The petition was filed in Orange County under case number 2023-CA-013217-O and states that Prochamps currently owes $7,276,114.49 to its secured creditor, Bank United, $46,524.42 in unpaid paid time off (PTO) to employees, $1,023,563.46 to almost 300 municipalities, and $1,062,637.29 in accounts payable to law firms, Post Capital Management, LLC, and other vendors.
Post Capital Partners, the primary investor in Prochamps, has directed the company to file for the ABC. The firm, led by Managing Partner Michael Pfeffer, has historically invested in and nurtured mid-sized businesses. Despite their involvement, Prochamps finds itself unable to take any further measures to stay afloat, raising questions about the investment firm’s oversight. This unfortunate circumstance at Prochamps paints a picture of a company in crisis, even with the backing of an experienced investor.
A municipal official from Pennsylvania who asked that his name not be included in this article had this to say: “We worked with Prochamps for years without interruption. This was sudden. We think we’re out about $7,000 – so far. I’ve talked to others that are in the same boat. We’re relatively small. I’m sure the larger communities are going to take a hit over this. It’s a shame.”