Creditors Likely to Receive Nothing
in Casso-Solar Closure
July 23, 2010
Casso-Solar Corp. in Pomona, N.Y., has closed after nearly 50 years
in business. According to a letter sent to unsecured creditors from
the companys attorney, Barton Nachamie with the firm Todtman,
Nachamie, Spizz & Johns, P.C., time, the economy and the
change in the marketplace has finally caught up with our client.
In his letter Nachamie writes, In fiscal 2008 the company
lost in excess of $447,000 in operations. Although the final figures
for 2009 have not been compiled the loss is expected to be significant.
The company has exhausted all reasonable avenues in seeking capital;
it has been unable to obtain new investment from third parties and
the owners have limited personal resources at this time.
USGNN.com spoke to Nachamie and inquired as to why Casso-Solar
chose not to file bankruptcy.
There was no reason [to file bankruptcy], Nachamie
said. Unfortunately for creditors, the bank had a first lien
on the assets and they have seized those assets
is closed and its assets are being sold.
As far as what creditors can expect to receive, Nachamie added,
I believe the [unsecured] creditors will receive nothing and
the secured creditors will likely come up short as well. It was
a major shortfall.
According to the letter, Casso-Solar is indebted to its bank for
more than $500,000 and the banks line is secured by a lien
on all of the companys assets. It also states that the companys
debt is approximately $1.2 million, including shareholders
loans and it is unclear if a liquidation, no matter how orderly
or how successful, would generate any real return for creditors.
The letter adds that Casso-Solars major assets are its accounts
receivables, almost all of which are due from overseas
HERE to read the full letter to unsecured creditors.
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