A Scarsdale bankruptcy expert who specializes in restructuring businesses and investing in distressed debt has petitioned for bankruptcy protection.
Triax Capital Advisors LLC in Scarsdale, owned and managed by Joseph E. Sarachek, filed for Chapter 11 reorganization last month in federal bankruptcy court in White Plains.
“The debtor intends to utilize the Chapter 11 process to maintain control over its assets while it works to maximize and monetize their value for the benefit of all creditors, not just one,” Sarachek, the sole member of the company, stated in a bankruptcy declaration.
Sarachek, who is also managing partner of the Sarachek Law Firm in Manhattan, has been involved in hundreds of bankruptcy cases, according to a profile on his law firm’s website. He describes himself as “one of the foremost authorities in the trading of privately held distressed debt.”
In 2003 he founded Triax, “a boutique restructuring merchant banking firm,” according to his LinkedIn profile. The firm helps companies restructure and it trades in illiquid assets such as bankruptcy assets.
“Our motto is that ‘We provide liquidity in illiquid situations.’”
Sarachek stated that Triax owns about $12.2 million in claims from the 2009 Stanford International Bank receivership and a 50% interest in LPAQ LLC, a trust that was established in the 2015 Life Partners Holdings Inc. bankruptcy in Texas.
The assets of Stanford International Bank, based in Antigua, were seized in connection with a U.S. Securities and Exchange Commission investigation of a $8 billion Ponzi scheme. The SEC also investigated Life Partners and was awarded a $46.8 million judgment for violations of securities laws.
Triax filed for bankruptcy protection, according to Sarachek’s declaration, to stop a “fire sale” of its interest in LPAQ LLC by one of its creditors. The creditor is not identified and the circumstances were not explained.
Triax has not yet filed bankruptcy schedules disclosing its assets and liabilities and other financial matters.
But Sarachek’s declaration lists more than $4 million in secured and unsecured creditors, including Southern Financial Group of Waco, Texas, $1,390,000; Principal Land of Brooklyn, $1,210,000; and Norma Loren of Arlington, Virginia, $992,081.
A New York County Supreme Court judge awarded Loren a $992,081 court judgment in July 2019, for breach of contract over several loans to Sarachek and Triax in 2010.
Triax is represented by Erica F. Aisner of Kirby Aisner & Curley LLP in Scarsdale.