SimRidge Technologies Ltd. has filed for Chapter 11 reorganization in U.S. Bankruptcy Court in Austin.
The injection molder has plants in New Braunfels, Texas, and Sanford, N.C., and recently sold a Tempe, Ariz., operation.
A court filing said the New Braunfels-based company has about 350 creditors, assets of $15 million and liabilities of $10.5 million - although a creditors' committee has questioned the accuracy of the valuations.
``The debtor purports to have valuable, assumable production contracts with several key manufacturer clients, yet it expects to realize a very substantial negative cash flow during the remainder of 2003,'' the committee said.
The company filed for reorganization Aug. 29.
SimRidge traces its roots to June 2001, when majority owners Gary Simons and Hollis Wooldridge led a leveraged buyout of the three-plant Huck Jacobson Plastics Group from an Alcoa Inc. subsidiary.
Mercury Quality Systems LLC, headed by President Mike Rossie, took control of the Tempe business during the third week of August. A court filing said SimRidge still owns property in Arizona.
