DULUTH, MN – September 28, 2012 – (Motor Sports Newswire) – The assets of Duluth-based Internet marketing company 50 Below could be up grabs as the company attempts to restructure.
50 Below filed for Chapter 11 Bankruptcy in August to try to get out of financial trouble.
According to the company’s former attorney, Mike McGrath, the current court-appointed attorney, Nauni Manty, is a lawyer for the trustee overseeing the process. The trustee will turn to the court to get permission to sell the company’s assets.
A judge is expected to make a decision whether to sell off the assets during a preliminary hearing on October 4th.
Documents filed with U-S Bankruptcy Court show the company has more than $12 million in unsecured claims, nearly $8.8 million of which is owed to the IRS, another one million dollars to the Minnesota Department of Revenue.
In a statement on September 1st, 50 Below stated record revenues and profits for the first half of 2012.
The company said revenues are up 31% to $10.3 million from last year. Profits through June of this year were $850,000 as compared to losses of more than $1.2 million in the first half of last year.
SOURCE: Northland’s NewsCenter