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Minnesota Rusco and 15 Affiliates File Chapter 7 as Debts Top $100 Million

Limited recovery options leave many customers facing losses.

Overview

  • Court papers filed in Delaware on Monday seek liquidation of Minnesota Rusco alongside 15 affiliated companies, including Texas-based parent Renovo Home Partners.
  • Initial filings list $1 million to $10 million in assets against more than $100 million in liabilities and up to 1,000 creditors, with no money expected for unsecured claimants.
  • Homeowners have begun filing claims alleging large deposits for projects that never started, including reported sums of $45,000 for a deck and $15,400 for windows.
  • BlackRock holds debt tied to Renovo’s expansion, and BlackRock TCP Capital disclosed $66 million in losses this year linked to restructured portfolio companies that included Renovo.
  • Case deadlines require naming the 20 largest creditors this week and submitting full financial schedules later this month, while Minnesota’s Contractor Recovery Fund caps payouts at $550,000 per contractor and $100,000 per consumer.