Apex Parks trustee seeks $20 million in damages from former execs

By Sarah Lizee

Olympia, Wash., April 7 – Apex Parks Group, LLC’s Chapter 7 trustee, Jeoffrey L. Burtch, is seeking damages of over $20 million against former managers, officers and directors of the company for breaches of fiduciary duties, according to an adversary complaint filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

Burtch claims the former executives’ respective breaches of their fiduciary duties caused the company to engage in corporate waste and incur more than $20 million in debt; caused the company’s assets to be depleted or otherwise materially decreased in value; and caused the company to suppress from scrutiny by its secured lenders and other third parties the critically impaired condition of the company.

The Chapter 7 trustee said that the company was allowed to continue to operate “well past the point of insolvency resulting in substantial harm and damage” to Apex.

Among other things, Burtch cited questionable business practices and pre-bankruptcy litigation as a result of the company having been “so grossly and recklessly mismanaged and operated” that it became the subject of about 100 lawsuits across the country. Some of these included tort claims, contract disputes and employee disputes.

Irvine, Calif.-based Apex Parks Group is a privately held company with 10 family entertainment centers and two water parks. The company filed bankruptcy on April 8, 2020 under Chapter 11 case number 20-10910.

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