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 company’s 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.”™ 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 … Casso-Solar 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 bank’s line is secured by a lien on all of the company’s assets. It also states that the company’s 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-Solar’s major assets are its accounts receivables, “almost all of which are due from overseas’ customers.”

CLICK HERE to read the full letter to unsecured creditors.

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