Date: Jan 31, 2014 Source: delawareonline (
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Plextronics, Inc. Files for Chapter 11 Protection
By Fox Rothschild LLP on January 31, 2014
POSTED IN BANKRUPTCY CASE SUMMARIES
Plextronics, Inc. ("Plextronics" or the "Debtor") filed for bankruptcy under Chapter 11 of the Bankruptcy Code on January 16, 2014 in the United States District Court for the District of Delaware.
According to the Declaration of William Snyder, Chief Financial Officer of the Debtor in Support of First Day Motions (the "Snyder Declaration"), the Debtor is a spinout from Carnegie Mellon University, and is headquartered in Pittsburgh, Pennsylvania. Plextronics is an international leader in the research, development and commercialization of conductive and semi-conductive polymers and ink formulations, which enable the commercialization of printed electronic devices.
Events Leading to Bankruptcy
The Debtor is a high technology research and development company and has experienced operational losses since its inception. In the years leading up to 2011, while the Debtor generated relatively modest revenue and received governmental grants, the funds were insufficient to cover all of the expenses and such excess expenses were funded by equity infusions from shareholders. Since 2011, the operational losses have been primarily funded by draws from the Debtor's secured creditors.
Objectives in Bankruptcy
Through the bankruptcy, Plextronics seeks to sell substantially all of its assets. According to the Snyder Declaration, the Debtor has engaged in negotiations with Solvay North America Investments, LLC, the presumed stalking horse bidder, for the sale and purchase of the Debtor's assets. Plextronics determined that any sale should occur inside a Chapter 11 case so that the sale would be subject to higher and better offers.
Plextronics is represented by the law firm of Campbell & Levine LLC. Plextronics' bankruptcy proceeding is before the Honorable Kevin J. Carey of the Delaware Bankruptcy Court, proceeding under case no. 14-10080. The next omnibus hearing is scheduled for February 12, 2014 at 11:00 a.m.
Carl D. Neff is a bankruptcy attorney with the law firm of Fox Rothschild LLP. Carl is admitted in Delaware and regularly practices before the United States Bankruptcy Court for the District of Delaware. You can reach Carl at (302) 622-4272 or at cneff@foxrothschild.com.
