EPIC Companies bankruptcy filing one of the largest of its kind in North Dakota history

EPIC Companies, the embattled property development and event management corporation, began Chapter 11 bankruptcy filings for several of its companies on July 8.

EPIC Companies office is seen Monday, May 20, 2024 in West Fargo.

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.

The Trust Project

FARGO — EPIC Companies, the embattled property development and event management corporation, began Chapter 11 bankruptcy filings for several of its companies making up the entity on Monday, July 8.

It comes after months of silence since they suddenly shut their doors last May.

The filings list hundreds of creditors, assets, and liabilities.

The number of persons or companies owed money, and how much they owe, varies widely, making it challenging to determine the financial position of the five entities listed in the filing.

But make no mistake, this is a big case.

"These five related cases are certainly the largest Chapter 11 cases to be filed in North Dakota in a great many years," said Mac VerStandig, a lawyer at the Dakota Bankruptcy Law Firm.

EPIC Companies has yet to make a public statement months after reports about their troubles, but companies that file a Chapter 11 bankruptcy often do so because they want to keep the business alive.

"Normally, a Chapter 11 is a company that wants to keep operating," VerStandig said.

It could spell relief for creditors in the filing, although that's far from a sure thing.

"Some creditors might see their debt wiped out, others might see their debt lessened, but not totally wiped out," VerStandig said. "Creditors are already going to be really nervous because a company that owes them money is acknowledging they don't have the means to pay the debts at the moment, but is asking for the trust to gin up the money to pay those debts."

It's also an option for companies that still want to make money through the bankruptcy process.

"People will pay more money for an asset that's still open for business and still seen for the public, rather than something that has a padlock on the door or a going out of business sign on the front window," VerStandig said.

With a case of this size, the timeline is up in the air, but VerStandig said it will likely keep lawyers busy.

"Tens or hundreds of millions of dollars, you can bet you're going to be standing in that courtroom for a pretty regular basis, month in and month out, for a pretty long time," he said.