AMERICAN TONERSERV TO FILE FOR BANKRUPTCY ?

  • big-banner-ad_2-sean
  • 2toner1-2
  • cartridgewebsite-com-big-banner-02-09-07-2016
  • toner-news-big-banner-nov-8
  • futor_902x177v7-tonernew
  • 536716a_green_sweep_web_banner_902x17712
  • 161213_banner_futorag_902x177px
  • facebook-tonernews-12-08-2016
  • mse-big-banner-new-03-17-2016-416716a-tonernews-web-banner-mse-212
  • Print
  • 4toner4
  • 05 02 2016 429716a-cig-clearchoice-banner-902x177
Share

AMERICAN TONERSERV TO FILE FOR BANKRUPTCY ?

 user 2011-01-19 at 8:39:16 am Views: 63
  • #24211

    http://www.therecycler.com/news/15061/American-TonerServ-ceases-normal-business-operations.aspx

    AMERICAN TONERSERV TO FILE FOR BANKRUPTCY ?
    American TonerServ, an imaging company based in California, filed a form 8-K with the American Securities and Exchange Commission in Washington DC. The filing states that it has ceased normal business operations. The company has been issued with a notice of default and has $673,000 of principal and accrued interest outstanding.

    The filing states: “Due to the Notice of Default from MTS reported in the Company’s report on Form 8-K dated December 17, 2010 [...] the Company has now ceased normal business operations.  Management is now considering the future course of action, which may include requesting protection under the U.S. bankruptcy laws and/or a liquidation of the Company’s remaining assets. It adds: “In any event, the Company does not expect to be able to resume any normal business operations.  It is also unlikely that the Company’s shareholders would receive anything for their shares in a bankruptcy proceeding or liquidation.”

    David T. Shaver and Clyde C. Shaver, the former owners of Tonertype of Florida, have stated that they intend to establish a new business using the Tonertype name and serving the same customers as the Company’s subsidiary that has operated under the Tonertype name.

    The Company is currently negotiating with the Tonertype owners concerning inventory, collection of accounts receivable and other issues related to the business operated by the Company’s Tonertype subsidiary. However, the Company does not intend to attempt to continue business operations in that subsidiary.American TonerServ has been contacted for comment but has not responded at this time.

    http://www.therecycler.com/news/15061/American-TonerServ-ceases-normal-business-operations.aspx

    http://www.action-intell.com/2011/01/14/american-tonerserv-may-file-for-bankruptcy/

    American TonerServ (ATS) may be headed for bankruptcy.
    This marks a reversal for the Rohnert Park, CA-based toner cartridge remanufacturer, which was on an acquisition spree back in late 2007 2008, scooping up iPrint Technologies, Image Technology Products, Mid-America Environmental, Pendl Companies, and Tonertype. In the first nine months of 2010, ATS had reported record revenue (see press release), and the firm announced in November that it was averaging 1,500 toner cartridge sales per day, a 50 percent increase compared to approximately one year ago (see press release). Now, it appears that ATS’s appetite for acquisition may have been bigger than it could afford.

    On December 30, ATS filed a form 8-K with the Securities and Exchange Commission (SEC), in which the company said it has ceased normal business operations. The filing reads, “Management is now considering the future course of action, which may include requesting protection under the U.S. bankruptcy laws and/or a liquidation of the company’s remaining assets. In any event, the company does not expect to be able to resume any normal business operations. It is also unlikely that the company’s shareholders would receive anything for their shares in a bankruptcy proceeding or liquidation.”

    A number of events precipitated the business’s shutdown. According to a December 23 8-K filing with the SEC, on December 17, ATS received a notice of default and foreclosure notice from MTS Partners, Inc., formerly known as iPrint Technologies. It appears that ATS still owes the group $2.4 million in promissory notes and loans related to the acquisition. MTS was looking to take back assets such as equipment, customer lists and relationships, intellectual property, leasehold interests, and contracts and records. According to ATS’s December 30 8-K filing. “The company does not dispute the existence of the default or the right of MTS to take over the collateral securing the company’s obligations.” However, ATS warned, “The company may pursue other claims that it may have against MTS and related persons.”

    According to the December 30 8-K form, on December 23, BDS Transitions, LLC, and David T. Shaver and Clyde C. Shaver, the former owners of Tonertype of Florida, LLC sent ATS a notice of default for an installment promissory note related to the Tonertype acquisition. ATS still owed the Tonertype parties approximately $673,000 related to the acquisition.

    Finally, on December 28, ATS received a notice of default and acceleration from Celtic Capital Corporation on a loan. Celtic Capital indicates the amount of principal remaining under the loan is $2.1 million, and the creditor is demanding immediate payment of the principal, accrued interest, fees, and other expenses.

    While MTS is looking to take back assets, the Tonertype parties are looking to do that and restart operations under their former name. The December 30 filing states that the notice of default sent by Tonertype “states that the Tonertype parties intend to take over a Tonertype website, telephone numbers, and other intellectual properties.The Tonertype parties also stated that they intend to establish a new business using the Tonertype name and serving the same customers as the company’s subsidiary that has operated under the Tonertype name.”

    All this drama goes to show that the merger mania that has swept through the non-OEM supplies industry can be dangerous to a company’s financial health. It appears that despite ATS’s “record revenues” of last year, it simply was not making enough to pay back what it owed.

    http://www.action-intell.com/2011/01/14/american-tonerserv-may-file-for-bankruptcy/