Tangredis ordered into liquidation

Less than a month after filing for Chapter 11 protection, restaurant operator's case is converted to Chapter 7 as both Nashville locations close doors

Email | Print By Walker Duncan

After filing for bankruptcy just under a month ago, embattled M. Tangredi Restaurants Inc. is now set for liquidation, according to filings from U.S. Bankruptcy Court.

An order issued last week by Judge Marian Harrison has officially converted the Chapter 11 to a Chapter 7 following a motion from the U.S. Trustee requesting the shift.

The recently filed motion, available here, outlines the reasons for the conversion, among them "to allow a Chapter 7 trustee to pursue the funds wrongfully obtained from American Express and return these funds to the bankruptcy estate." American Express sued the company and its principals last year, claiming they had submitted roughly $1.1 million in bogus credit-card charges.

When the original bankruptcy was filed, according to the motion, the debtor schedules did not include the money owed to American Express following the recently granted default judgment against M. Tangredi Restaurants and Minc Concepts. Other debts mentioned in the motion are $35,000 to the Tennessee Department of Revenue and $48,000 to the Internal Revenue Service.

Other filings recently available from the courts include a subpoena which indicates the involvement of well-known local attorney and case law guru John Herbison on the side of the Tangredis. The subpoena asks him to produce the company's files and computers at the office of the trustee tomorrow morning.

NashvillePost.com has also learned that the company's eateries, Tangredi's' Italian Kitchen on Elliston Place and Michael T's on Division, have been closed since last week. Calls to the establishments have not been answered.