Our Bankruptcy Attorney Blog

News from BankruptcyData.com

MPC Corporation and eight affiliated Debtors, including Gateway Companies, filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware. The Company–whose primary business is providing PC-based products and services to mid-sized businesses, government agencies and education organizations–is represented by Richard A. Robinson of Reed Smith. According to documents filed with the Court, the Company’s largest unsecured creditor is Flextronics Logistics USA, which is owed $25 million.
On October 27, 2008, the Company was notified by the NYSE Alternext US of the exchange’s intention to strike the common stock and warrants of MPC from the exchange. Previously, on May 8, 2008, the American Stock Exchange had notified MPC that the Company was not in compliance with Section 1003(a) (i) of the AMEX Company Guide, in that the Company’s stockholder equity had fallen below $2 million dollars and that MPC had sustained losses from continuing operations or net losses in two of its three most recent fiscal years. MPC responded by submitting a plan for achieving compliance, which was accepted by AMEX on June 27, 2008. At that time, MPC was granted an extension until November 9, 2009 to regain compliance with listing standards, subject to periodic review of progress. The October 27, 2008 decision by NYSE Alternext US (which acquired AMEX on October 1, 2008) to file the delisting application was based on its review of publicly available information as well as information provided by MPC. In a letter to MPC, the exchange cited the Company’s failure to make progress consistent with its submitted plan, further citing that the plan no longer demonstrated MPC’s ability to regain compliance under Section 1003(a) (i) of the Company Guide.

You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.