Bankrupt tech company NanoMech filed documents with a Delaware court Wednesday showing it has $7.2 million in assets and owes nearly $19 million to its creditors.
The more detailed documents provide a closer look at the company's financial health as NanoMech in Springdale prepares to go on the auction block next month. In preliminary documents filed in April when NanoMech sought Chapter 11 bankruptcy protection, the company told the court it had between 100 and 199 creditors, between $10 million and $50 million in assets and between $10 million and $50 million in debt.
NanoMech develops nanotechnology for use in machining and manufacturing, lubrication, packaging, biomedical implant coatings, and the development of specialty chemicals. Nanotechnology is the manipulation of matter at the atomic and molecular scale. Jim Phillips stepped down as CEO weeks before the bankruptcy filing.
The new filing showed all property of NanoMech valued at $7.2 million, including $2.9 million in inventory; $3 million in intangibles and intellectual property including patents, trademarks and trade secrets; and nearly $350,000 in cash.
Total liabilities stand at $18.9 million with $12.5 million owed to creditors secured by property and $6.4 million in unsecured claims. Typically secured creditors take priority and are paid first in a bankruptcy.
The 12 secured claims include New York-based Michaelson Capital for $8.95 million, Arvest Bank for $1.55 million as well as $1 million to the Arkansas Economic Development Commission. The 166 unsecured creditors include, the Waring and Carmen Partridge Foundation of Kingsville, Texas, for $2 million; Dan Carroll of Bloomfield Hills, Mich., for $1 million; Brewster Jennings of Oyster Bay, N.Y., for $100,000; and Akerman LLP of Orlando, Fla., for nearly $492,000.
Recently Chief Judge Christopher Sontchi with the U.S. Bankruptcy Court for the District of Delaware, approved short-term financing for NanoMech and approved plans to sell the company at auction in late June.
Last month, NanoMech presented a preliminary plan to the court to sell the company at auction. The company's largest creditor, Michaelson Capital, will act as the so-called stalking horse bidder in an auction, making a $9 million initial bid for the company's assets along with assumed liabilities.
Business on 05/16/2019
CORRECTION: Jim Phillips joined Springdale-based NanoMech in 2008 as company chairman, became its chief executive officer, and stepped down last month. An earlier version of this story incorrectly described his initial position with the company.