Wednesday, May 11, 2016

May 11th Press Release - Innovative Building Systems LLC Bankruptcy Notice

May 11, 2016

Mechanicsburg, PA - Innovative Building Systems, LLC (IBS) and its affiliated companies regret to announce that they have filed voluntary petitions for relief under Chapter 7 of the United States Bankruptcy Code this afternoon in the United States Bankruptcy Court in the District of Delware.

The companies expect a Chapter 7 trustee to be appointed who will then be charged with administering the companies’ assets and distributing any proceeds to creditors.

The filing was precipitated by the companies’ impaired ability to sell and finance their businesses and operations as a going concern, despite ongoing negotiations with the companies’ senior secured creditor, junior secured creditors, alternative lenders, and potential buyers of the companies’ assets. The companies’ decision to file bankruptcy were further exacerbated by a Notice of Termination of Lease sent by the landlord of several of the companies’ manufacturing facilities. The company disputes the Notice of Termination of Lease. Additionally the landlord of the manufacturing facilities has reportedly entered into an agreement to sell the facilities it owns to a third party and it has also been reported that the buyer has expressed an interest in re-opening the facilities as soon as practicable. The company made the decision to take these actions only after all efforts to sell or refinance the company as a going concern were exhausted.

Contact

Innovative Building Systems, LLC
Phil Hickman
800-345-6767 Extension 2282

OR
Jolene Myers
717-458-1412


4 comments:

Anonymous said...

About time they filed. Now Champion or Cavco or whoever can take over and convert them all to mobile home factories.

Anonymous said...

These facilities if ran as there own single entities (Excel, Mod-u-craft, All American, etc)could have been successful. They all have talented workers in each of the plants. With the market doing as well as it is doing there is no reason for a modular manufacture to be closing.
To the above comment: The entire industry will be Champion and Clayton homes. Wobble box manufacturing. Not saying there is anything wrong with that because there is a market for it. It was just good for the industry to have that modular option.

Anonymous said...

Karma is a wonderful thing, they hurt me bad when they bought Chelsea and cut me off because they were selling to my direct competitor. I made it back, but it's good to see all their wheeling and dealing finally bit them. I do feel sorry for all the good employees who lost their jobs, what a shame.

Anonymous said...

It would be great if the Excel were given a chance to own the company under an ESOP. Excel has changed ownership more often than my wife changes mind about what to wear. The employees are always treated like pawns. imagine just how great a company it would be with employees in control.