A prosthetic company based in New England is seeking Chapter 11 bankruptcy, according to confirmation from the company’s chief executive officer (CEO). The company, the New England Orthotic and Prosthetic Systems, filed for protection from its creditors in the middle of July. The company is headquartered in Branford. The company will legally be allowed to continue operations as it restructures debt.
There are 21 locations for the company throughout Connecticut, New York, New Hampshire, Massachusetts and Rhode Island. The company’s senior debt, which is paid off prior to paying off debt owed to creditors, was purchased by a prosthetic retailer based in Long Island, New York. The company was not named by the CEO of New England Orthotic and Prosthetic Systems. It is expected that the two companies will merge before 2017 comes to an end.
The CEO told the media that the reason for the bankruptcy filing is due to being over-extended by the company that recapitalized the company back in May of 2012. The company the CEO spoke of was Street Capital Partners, which is headquartered in Buffalo, New York. The CEO also cited regulatory changes within the industry that also led to the bankruptcy filing.
The filing shows that the company has no more than 50 creditors and liabilities totaling $17.3 million. The company is reportedly worth $19.3 million, with $11.8 million of it coming from intangible assets.
Running a business is not easy. If debt has you headed for Chapter 11 bankruptcy protection in Nashua, an experienced bankruptcy attorney can guide you through the lengthy process.
Source: Stamford Advocate, “New England Orthotic and Prosthetic Systems seeks Chapter 11 bankruptcy,” Luther Turmelle, Aug. 02, 2017