Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comRobotics Company, Boomerang Systems Inc., Files for Chapter 11
Author: Joel R. Glucksman|September 30, 2015
Boomerang falls into debt but hopes to emerge as a viable business
Robotics Company, Boomerang Systems Inc., Files for Chapter 11
Boomerang falls into debt but hopes to emerge as a viable business
Boomerang Systems Inc., a New Jersey-based leading provider of automated robotic parking solutions, recently filed for Chapter 11 bankruptcy protection. The company, known for creating high-tech parking decks where robots store and retrieve the vehicles, plans to secure new financing.
Boomerang and three affiliated debtors cited in bankruptcy filings that the company is seeking to restructure its balance sheet due to insufficient operating capital. According to Bankruptcy Company News, the company claimed that it had failed to turn a profit from its automated parking systems since its launch in 2007. As a result, the company had funded operations with debt with the goal of emerging as a viable business when it built a market for its automated parking systems products.
Boomerang’s objective is to develop a restructuring plan that will enable the company to continue operations, according to NJ Biz. Company officials also explained that a group of its senior secured debt holders have committed to finance the restructuring. To facilitate its restructuring, Boomerang filed a motion with the U.S. Bankruptcy Court to approve debtor-in-possession financing. In turn, the company has obtained $2.5 million in post-petition financing from Game Over Technology Investors, LLC pending confirmation of a chapter 11 restructuring plan. The debtor-in-possession financing facility is on a super-priority basis in an aggregate principal amount of $2.5 million, of which it seeks to use up to $1,000,000 as cash collateral on an interim basis in conjunction with the debtor-in-possession order. According to bankruptcy filings, the remaining amount will be available on a monthly basis, subject to certain milestones and continued compliance with the funding conditions. The debtor-in-possession financing will provide Boomerang with the necessary liquidity to finance operations throughout the bankruptcy period.
What’s next for Boomerang?
The company and its three affiliates are seeking approval from the court to support its working capital requirements and general corporate purposes. Company officials also explained in court documents that there is uncertainty over the Boomerang’s future, as more employee layoffs are expected.
Boomerang stated that it has retained Togut, Segal & Segal LLP and Ciardi, Ciardi & Astin to represent Boomerang and its three affiliates throughout the bankruptcy period. However, the company also retained Berg & Androphy to represent it against its defaulting lender.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
Robotics Company, Boomerang Systems Inc., Files for Chapter 11
Author: Joel R. Glucksman
Boomerang Systems Inc., a New Jersey-based leading provider of automated robotic parking solutions, recently filed for Chapter 11 bankruptcy protection. The company, known for creating high-tech parking decks where robots store and retrieve the vehicles, plans to secure new financing.
Boomerang and three affiliated debtors cited in bankruptcy filings that the company is seeking to restructure its balance sheet due to insufficient operating capital. According to Bankruptcy Company News, the company claimed that it had failed to turn a profit from its automated parking systems since its launch in 2007. As a result, the company had funded operations with debt with the goal of emerging as a viable business when it built a market for its automated parking systems products.
Boomerang’s objective is to develop a restructuring plan that will enable the company to continue operations, according to NJ Biz. Company officials also explained that a group of its senior secured debt holders have committed to finance the restructuring. To facilitate its restructuring, Boomerang filed a motion with the U.S. Bankruptcy Court to approve debtor-in-possession financing. In turn, the company has obtained $2.5 million in post-petition financing from Game Over Technology Investors, LLC pending confirmation of a chapter 11 restructuring plan. The debtor-in-possession financing facility is on a super-priority basis in an aggregate principal amount of $2.5 million, of which it seeks to use up to $1,000,000 as cash collateral on an interim basis in conjunction with the debtor-in-possession order. According to bankruptcy filings, the remaining amount will be available on a monthly basis, subject to certain milestones and continued compliance with the funding conditions. The debtor-in-possession financing will provide Boomerang with the necessary liquidity to finance operations throughout the bankruptcy period.
What’s next for Boomerang?
The company and its three affiliates are seeking approval from the court to support its working capital requirements and general corporate purposes. Company officials also explained in court documents that there is uncertainty over the Boomerang’s future, as more employee layoffs are expected.
Boomerang stated that it has retained Togut, Segal & Segal LLP and Ciardi, Ciardi & Astin to represent Boomerang and its three affiliates throughout the bankruptcy period. However, the company also retained Berg & Androphy to represent it against its defaulting lender.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
