Lumenyte International Corp., which filed for protection under Chapter 11 of the U.S. Bankruptcy Code, expects to have a reorganization plan by mid-May. "We intend to pay back creditors substantially if not in full," Lumenyte bankruptcy lawyer Evan Smiley of Costa Mesa, Calif., said in a telephone interview.
The Irvine, Calif., maker of plastic optical fiber filed a voluntary petition Jan. 5 at the U.S. Bankruptcy Court in Santa Ana, Calif., seeking protection from secured lender Imperial Bank of Los Angeles and other creditors.
Lumenyte listed assets of $8.5 million and liabilities of $3 million.
Imperial Bank declared a net-worth covenant default in February 1999 and was moving to place Lumenyte under a state court receiver when the company filed for protection under Chapter 11 of the U.S. Bankruptcy Code. The bank said Lumenyte's net worth fell below $2.8 million, but the company disagrees.
The bank filed a second default against Lumenyte in early February. Judge Robert Alberts resolved that issue Feb. 18 in Lumenyte's favor.
Smiley said Lumenyte had profit of $70,000 on sales of about $5.8 million for the eight months ended Nov. 30. He projects sales of $7.5 million and continued profitability for the fiscal year ending March 31.
Lumenyte Chairman Sanford R. Willford was named chief executive officer in mid-February, succeeding John Robbins.
Willford is a long-time director and Lumenyte's largest shareholder. Robbins, who remains president, founded the company in 1988.
The company is seeking new investment sources to fund the reorganization plan, Smiley said.
Lumenyte employs 60, leases 70,000 square feet and manufactures large-core optical-fiber lighting systems for outdoor signs, display lighting, casinos, emergency vehicles and aircraft interiors.