Audiotronics Corp. Seeks Chapter 11 Protection
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Audiotronics Corp., a North Hollywood maker of audiovisual products for classrooms, said Monday it has filed for reorganization under Chapter 11 of the federal bankruptcy laws.
Under Chapter 11, a company is shielded from creditors’ lawsuits while it works out a plan to pay its bills. Audiotronics said it has hired Kenneth C. Cleveland & Associates to help it develop a reorganization plan.
Audiotronics said late product deliveries, parts shortages and new-product delays left it with a severe cash-flow shortage that forced the company to miss a debt payment and seek protection from the bankruptcy court.
The company also said its stock and debentures, a type of debt, will no longer trade on the American Stock Exchange. The stock closed Monday at 31 cents a share; it reached a record high $11.50 a share in November, 1980.
In its fiscal year that ended last June 30, Audiotronics lost $1.53 million on sales of $6.15 million.
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