Southern California construction company EMCON CA Inc. filed for Chapter 7 bankruptcy on January 27, 2026, marking the end of operations for this Los Angeles-based builder. The voluntary petition lists minimal assets against heavy debts, spotlighting challenges in the regional construction sector.
EMCON CA Inc. submitted the Chapter 7 petition in the U.S. Bankruptcy Court for the Central District of California, Los Angeles Division, under case number 2:26-bk-10727-VZ. Judge Vincent P. Zurzolo oversees the case, with Kogan Law Firm APC representing the company. The principal place of business is 10940 Wilshire Boulevard, Suite 600, Los Angeles.
Court documents via PACER reveal estimated assets between $0 and $50,000, primarily $1,564 in total property. Liabilities range from $1 million to $10 million, with specifics at about $2.29 million. The filing notes 1 to 49 creditors and no revenue since 2025 as the main trigger.
Financial Snapshot
Gross revenue stood at just $15,279 in 2024, dropping to zero in 2025 and early 2026 per Official Form 207. Unsecured priority creditors include the Internal Revenue Service, the California Franchise Tax Board, the Employment Development Department, the Los Angeles County Tax Collector, Bank of America Visa, and the U.S. Small Business Administration. Nonpriority unsecured claims total roughly $2.15 million, led by Edward Wells at $2 million in litigation and Berman Law Offices at $90,000.
Ebrahim Adloo serves as the company president. A pending contract dispute lingers in the LA Superior Court.
Company Background
EMCON CA Inc., a corporation with over 20 years of experience in Southern California construction, focuses on residential and commercial real estate. It built single-family homes, condominiums, and projects from high-end to affordable housing. The firm stressed coordination with city officials, communities, project planning, cost control, and a Client Service Division for developments, remodels, emergency repairs, and design-build services in Los Angeles.
BuildZoom records show EMCON held active general building and tile licenses, with Ebrahim Adloo listed as sole owner and responsible managing officer. Recent permits included apartment projects valued at over $2.6 million, such as a four-story multi-family building with subterranean parking in 2020.
Implications for the Construction Sector
Chapter 7 liquidation means a trustee will sell assets to pay creditors, likely dissolving EMCON CA Inc. This filing underscores revenue droughts hitting small construction firms amid high interest rates, supply chain issues, and slowed housing demand in Southern California. Unpaid taxes and litigation claims signal operational strains common in the industry.
Creditors, such as government tax agencies and the SBA, face low recovery odds given the asset-liability gap. Subcontractors or partners in ongoing disputes may seek claims in the process.
EMCON’s swift Chapter 7 as a cautionary signal for Southern California builders reliant on sporadic projects. With liabilities dwarfing assets by over 1,400 times, firms must prioritize cash reserves and diversify beyond residential amid 2026’s uncertain economy; prevention beats liquidation every time.
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