BroadSign Files for Chapter 11 Bankruptcy Protection
Digital signage software maker lists debt of $10 million to $50 million.
Is it good or bad timing that BroadSign International sought protection from creditors two days ahead of Digital Signage Expo 2012 where it’s a conference sponsor?
During the March 6-9 event, the manufacturer of digital signage software gets a chance to explain its filing for Chapter 11 documents with the U.S. Bankruptcy Court and listed debt of $10 million to $50 million versus assets of $1 million to $10 million.
BroadSign intends to auction almost all its assets, according to Bloomberg News.
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“The most effective way to maximize the value of their estates for the benefit of creditors is to complete a prompt sale of substantially all their assets,” BroadSign Chief Executive Officer Brian Dusho said in court documents.
BroadSign and its affiliates are insolvent and income is “insufficient to continue their operations without an infusion of further capital,” Dusho said. The company will seek court approval to borrow as much as $328,295 to help fund operations until it completes the sale.
BroadSign and its affiliates owe their 20 largest unsecured creditors about $2.3 million, court papers show. Olton Management is the largest, with a $1.3 million claim.