Friday, April 18, 2003
No money is expected to be left for unsecured creditors.
THE VINDICATOR
YOUNGSTOWN -- Chrystal's Restaurant remains open as the owner tries to work out financial difficulties that caused the Belmont Avenue eatery to file for bankruptcy protection.
Chrystal's filed a Chapter 11 bankruptcy March 31 in federal bankruptcy court in Youngstown. Such a filing allows the business to put off paying creditors while it tries to reorganize its finances.
Owner Jeff Chrystal couldn't be reached to comment, but an employee said operations are continuing.
The filing doesn't mention a second restaurant that Chrystal opened last year at Fonderlac Country Club in Springfield Township. Chrystal's at Fonderlac serves a similar menu as the Youngstown restaurant but also has a 300-seat banquet hall.
Chrystal also owns Chrystal Catering, which serves food at events between Cleveland and Pittsburgh.
Largest creditors
The filing for the Belmont Avenue restaurant lists the largest creditors as Northern Haserot, a Cleveland food distributor with a claim of $80,000, and Second National Bank of Warren, with a claim of $30,000.
It doesn't list exact totals of assets and debts of the company but indicates that Chrystal's does not expect that there will be money for unsecured creditors at the end of the case. Unsecured creditors hold no special assurance of payment, such as a mortgage or lien.
A meeting of creditors is scheduled at the court May 12.
Chrystal started the catering business in 1993 and opened the Youngstown restaurant two years later in the former Ambrosio's restaurant building.