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Solvency now on the menu at restaurant Seven
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Seven, the downtown steak and sushi restaurant and self-described "elegant event destination," has reached a destination of its own: solvency.
A U.S. Bankruptcy Court judge cleared a path out of Chapter 11 bankruptcy for the restaurant's owners. The plan lists $2.87 million in debt for owner Koch Group Mpls, the limited liability partnership of restaurateur David Koch.
Notably absent: Denny Hecker, who at one time claimed 35 percent ownership of the restaurant before his finances imploded. His equity was effectively wiped out by the reorganization plan.
Seven filed bankruptcy in April, saying it owed between $1 million and $10 million to 100 to 199 creditors. It owed just over $2 million to its 20 largest creditors, including Carlton Financial of Wayzata, which filed a claim of $836,913.42. Seven owed the state Revenue Department $283,830.43, and it owed $329,753.70 to Diversified Construction, according to amended filings.
Priority and secured claims will be paid in full. Unsecured creditors will get 15 cents on the dollar.
'It's here to stay'
The plan gives Koch five years to pay back taxes owed to the state and federal government and eight years to pay Carlton Financial's secured debt of $394,345.
Seven may continue to operate under the plan.
"It's strong, and it's here to stay," said Koch, in a statement released Wednesday.
The restaurant, at 700 Hennepin Av. S., opened in 2007.
Matt McKinney • 612-673-7329
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