Bankruptcy Lawyer on Endicott Interconnect
7/12/2013 (Updated 6:58:15 PM)With news that Endicott Interconnect has filed for bankruptcy, the question now is what the future holds for one of the area's largest employers?
One clue could be in the type of bankruptcy the company filed Chapter 11.
Part of a Chapter 11 filing is putting together a plan to reorganize debt and pay off creditors in order to keep the business going.
A Chapter 7 bankruptcy appoints a trustee to oversee a liquidation of a company's assets before ending operations. David Zube is a Binghamton bankruptcy attorney not involved in the E.I case, but says the Chapter 11 filing puts the company under the scrutiny of the U.S. Trustees Office and the court.
"They have to be filing monthly operating reports showing all their income, all their expenses, everything that's going on with the business. That gets reviewed by the U.S. Trustees Office and by the court and are available to all the creditors to review," said Zube.
In a letter to E.I employees, new Chief Restructuring Officer David Van Rossum wrote that the company was unable to meet its $70 million debt because it had incurred nearly $100 million in operating losses between 2009-2012. You can view the letter on our website www.wicz.com.
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