Electronics Production |
MPC files for Chapter 11
MPC, and all of its direct and indirect subsidiaries, have filed voluntary petitions for relief and reorganization under Chapter 11 of the United States Bankruptcy Code. Flextronics said to have terminated manufacturing contract.
The filings were made in the United States Bankruptcy Court for the District of Delaware. The company's operations are expected to continue during the reorganization process.
MPC CEO John Yeros said, “Unforeseen issues surrounding our integration of the Gateway Professional business unit, combined with adapting the operations of our manufacturing partner to additional customized requirements have proven more challenging than originally anticipated, and have contributed to extensive losses. We evaluated all strategic alternatives, and concluded that the filing was necessary at this time.”
MPC had outsourced production to Flextronics. However, the EMS-provider terminated the manufacturing contract in early November, reported the Sioux City Journal.
MPC Corporation's stock and warrants were delisted from the NYSE Alternext US LLC exchange effective November 4th, 2008. It is not anticipated that there will be any distribution to equity holders in conjunction with the bankruptcy cases. Focus Management Group USA, LLC has been retained as financial advisors to the Company and to assist with the bankruptcy process. Reed Smith, LLP will represent the Company in connection with the bankruptcy case.
