Dippin’ Dots is hoping to keep off foreclosure by filing for bankruptcy protection. This is because of their debt of over $11 million in borrowed money. They filed for a Chapter 11 reorganization in order to help their company out, and by them a little more time. They are hoping to use cash collateral to continue the business and pay off the debt. This will not harm creditors, one of their biggest being the Regions Bank, they are owed around $11 million alone. This bank sued the company in February, they stated that the company allegedly defaulted on many different loans through their bank. This suit is still pending.
A 48 hour notice came through to the company stating that they intend to foreclose on the loans. This moved Dippin’ Dots to file for this bankruptcy protection. They are hoping to refinance the debt that they are owed. The company does not intend to borrow money from any other source, and they must be able to use the cash collateral in order to continue functioning as a business. It is just a difficult time in the economy right now, and many businesses are filing for bankruptcy protection because they are not able to make ends meet at this point in time. The company currently lists over $20 million in assets, and more than $12 million in their liabilities. The income is over $25 million per year and steadily growing.