What does Isabella’s Ch. 11 mean for his sexual harassment suit settlement? A bankruptcy attorney explains.

When several entities tied to restaurateur Mike Isabella’s restaurant group filed for Chapter 11 bankruptcy protection Thursday, one name in particular stood out among the list of creditors: Chloe Caras, the former Mike Isabella Concepts manager who sued Isabella for sexual harassment earlier this year. 

Isabella and Caras settled the case for an undisclosed sum in May, and the Ch. 11 filing of Mike Isabella Inc., the company for Mike Isabella Concepts, lists Caras as a creditor. It doesn’t include the actual amount she is owed, however, citing the confidentiality of the suit. 

The petition does indicate that Mike Isabella Inc. made a payment of $12,500 to Caras sometime in the three months before the bankruptcy documents were filed. He also made a payment to the law firm of Caras’ attorney, Debra Katz. The timeline tracks — Isabella settled the suit in early May. 

But the fact that Caras is listed as a creditor suggests that she hasn’t yet been made whole in terms of the…

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