Quasi-defunct ImagePoint has filed for Chapter 11 status, but may be forced into Chapter 7.
The hearing for ImagePoint’s creditors as to status is slated for May 20. Three other related hearings will occur before then.
Three creditors were trying to force ImagePoint, the quasi-defunct, $53 million (according to www.indeed.com) sign company, into Chapter 7 bankruptcy, which means complete liquidation (although liquidation doesn’t automatically preclude Chapter 11 status). The day of the noon, April 10 deadline, ImagePoint filed for Chapter 11 protection, which would allow it to reorganize. U.S. Bankruptcy Judge Marcia Phillips Parsons has set a 9 a.m. May 20 hearing in U.S. Bankruptcy Court in Knoxville, which is “a chance for the U.S. bankruptcy trustee in charge, plus any creditors who wish to question ImagePoint representatives under oath, about the company’s actions, finances, property, reorganization plan or other issues.”
According to the April 25 Knoxville News-Sentinel newspaper, ImagePoint attorney Robert Bailey said Chapter 11 status would allow ImagePoint “to maximize the value of the assets it liquidates.” Although sources tell me that Chapter 7 seems inevitable, they also say Bailey “has handled some really big cases over the years.”
As is typical in bankruptcy cases, ImagePoint is trying to reduce the number of creditors to which it must mail notices. A May 11 hearing was set to seek reduction of the approximately 4,200 creditors.
Additionally, on May 11, a hearing will be held with regard to claims from General Motors, McDonald’s and John Deere with regard to money paid (analogous to a retainer) to insure a readily available stock of signs for future use.
In a fourth hearing, set for May 18, Principle USA, the new U.S. subsidiary of a U.K.-based sign company that comprises former ImagePoint employees, has filed a breach-of-contract claim against its former quasi-partner. The April 9 Knoxville News-Sentinel reported, “Principle claims that ImagePoint had agreed to manufacture signs that were to be installed for a Principle client on buildings in eight U.S. states. Principle alleges that ImagePoint produced the signs, but installed them improperly, and 10 signs fell off buildings.”
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