Ameritex files for Chapter 11 Bankruptcy protection
By IBI Magazine
Ameritex Technologies, with headquarters in Florida and a production facility in North Carolina, filed for Chapter 11 bankruptcy protection on June 19th. The company said it is in negotiations to sell its assets to Dowco, Inc. a marine supplier in Manitowoc, Wisconsin. "With the shutdown of one of our key customers, the bankruptcy filing of another major industry player and large customer, and the overall devastation that has occurred in the marine market, we were left with significant uncollectible receivables and a resulting negative cash flow position that left us with an inadequate credit line and operating resources," said Don Zirkelbach, president, in a statement. "There was just no other way around the current circumstances." The company said that during the bankruptcy proceedings it would continue to manufacture products for its list of customers. According to documents in the US Bankruptcy Court in Tampa, Florida, Ameritex is attempting to sell assets to Dowco for US$2.65m to satisfy its creditors. Ameritex said BB&T, its primary lender, cut back its credit line from US$3m to US$1.67m because of the loss of the two major clients. That amount was too small to pay for continuing operations, according to the documents. Its secured creditors include BB&T, which is owed US$2.1m and First Bank, owed US$6.1m. Its list of unsecured creditors are owed approximately US$2.4m.
(3 July 2009)
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