Case Summary: Air Pros Chapter 11

Business Description

AFH Air Pros, LLC, along with its Debtor affiliates⁽¹⁾ (collectively, “Air Pros” or the “Company”), is a provider of HVAC, plumbing, and electrical services across the southern and western U.S.

• The Company primarily focuses on HVAC installation, repair, maintenance, and air quality solutions for residential and commercial customers.
• Certain business units also offer complementary services, including plumbing, electrical, and home warranty solutions.

Air Pros operates under multiple brand names across eight states. The Company’s licensed technicians handle routine maintenance, emergency repairs, system upgrades, and full replacements.

The Company filed for Chapter 11 protection on Mar. 16 in the U.S. Bankruptcy Court for the Northern District of Georgia. As of the Petition Date, the Debtors reported $100 million to $500 million in both assets and liabilities.

⁽¹⁾ For a complete list of debtor entities, see the Chapter 11 Debtors table.

Corporate History

Founded in Fort Lauderdale, FL, in 2017 by Anthony Perera, Air Pros grew from a single vehicle and two employees to over 700 employees and 600+ service vehicles across eight states.

The Company’s expansion has been primarily driven by M&A, with key acquisitions including Blue Star Heating & Air and Louis Bruno, LLC (2019), Climate Solutions, Co. (2020), and Dallas Plumbing (2022).

• Growth accelerated post-2021 following a strategic investment from Peak Rock Capital, enabling significant acquisitions such as Hansen Heating & Air in Alabama.

Organizational Structure

• Air Pros Solutions Holdings, LLC (“Holdings”) is the ultimate parent entity, fully owning Air Pros Solutions, LLC (“Solutions”), which in turn owns all Debtor subsidiaries except Air Pros Washington, LLP (99.9% ownership).
• Equity holders include Akaa Family, LLLP (75.2%), Capital Finance Opportunities 1901C, LLC (9.7%), C&P Hansen Heating and Cooling, Inc. (8.5%), and others.
• Effective January 31, 2024, restructuring veteran Lawrence Hirsh was appointed sole independent manager.

Chapter 11 Debtors

Operations Overview

Air Pros employs a decentralized “hub-and-spoke” model, preserving acquired companies’ local branding while centralizing support functions (marketing, finance, procurement, and call centers). While aiding growth, this model also contributed to integration inefficiencies.

Regional Business Units

• Air Pros (Legacy): Original Florida operations (~75% HVAC), including Blue Star Heating & Air and Louis Bruno LLC. Benefits from a Home Depot referral partnership via Solar Bear (acquired 2019).
• One Source Home Service: Colorado Springs-based, ~85% HVAC, plus plumbing and electrical.
• Hansen: Alabama-based, ~75% HVAC, with plumbing and electrical.
• Doug’s Service: Louisiana-based, ~62% HVAC, plus plumbing and electrical.
• Air Force Heating & Air: Georgia and Alabama operations, ~92% HVAC.
• Dallas Plumbing: 120-year-old Texas company with an equal HVAC/plumbing mix. Acquired in 2022, expanding Air Pros’ Texas reach and plumbing expertise.
• Dream Team Heating & Air: Denham Springs, LA-based, ~92% HVAC.
• CM Heating & Cooling: Everett, WA-based, ~85% HVAC, plus plumbing and electrical.
• East Coast Mechanical: South Florida-based, ~59% HVAC, with strong home warranty and maintenance contract-driven recurring revenue.

Prepetition Obligations

Top Unsecured Claims

Events Leading to Bankruptcy

Operational and Integration Challenges

• Following a rapid series of acquisitions over approximately 15 months, Air Pros faced significant operational and integration challenges, exacerbated by its strategy of maintaining local brand identities.
  • The fragmented practices across its regional units created inefficiencies and inflated costs.
• Simultaneously, the Company's burdensome debt load consumed liquidity, severely limiting operational flexibility and ultimately triggering debt defaults.

Initial Strategic Transaction Efforts

• To address escalating financial and integration challenges, the Company retained Jefferies LLC in July 2023 for a potential going-concern sale.
  • Although a robust marketing process was conducted, it failed to yield a viable enterprise-wide buyer.

Corporate Governance and Leadership Changes

• Liquidity pressures intensified, leading lenders to appoint restructuring veteran Lawrence Hirsh as sole manager in January 2024, replacing founder Anthony Perera.
  • Perera fully exited the Company by October 2024, briefly serving as consultant during Chapter 11 preparations.

Break-Up Sale Strategy and Recent Marketing Efforts

• Under new leadership supported by restructuring advisor Accordion, Air Pros evaluated strategic options, ultimately deciding that a break-up sale would maximize asset value. Jefferies relaunched the marketing process, attracting stalking horse bids to facilitate court-approved sales.

Chapter 11 Filing and DIP Financing

• Facing mounting defaults, Air Pros filed Chapter 11 on March 16, 2025 with lender backing.
• The filing was supported by a $20 million DIP Facility ($4 million initially, $6 million upon final approval, plus roll-up financing), ensuring business continuity, vendor and customer relationship maintenance, and maximizing asset value through competitive asset sales.

Initial Budget

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