INTERNATIONAL TRADE : VTN Subsidiary Files for Protection From Its Creditors
A San Diego subsidiary of VTN Corp., an Orange-based engineering company, has filed for bankruptcy protection from its creditors.
Executives at VTN Southwest Inc., considered one of San Diego’s oldest civil engineering firms, said the company’s bankruptcy filing listed assets of $592,663 and debts of $869,372.
The executives blamed the recession, which has severely hurt the construction industry, and recent bankruptcy filing by two Southern California developers that were major clients of the San Diego company.
The company is trying to reorganize by implementing a job-sharing program, selling some assets and consolidating or closing some warehouses, said Gary Lipska, a vice president at VTN Southwest.
“Since the filing, we’ve concentrated on collecting the older debts, those between 90 days and 120 days,” he said. The San Diego company laid off only one of its 47 employees since filing for bankruptcy on Aug. 13, he said.
Lipska said the company decided to file for bankruptcy after VTN Corp. Chairman Daniel C. Montano decided not to provide more financing for the unit. Montano is traveling abroad and could not be reached for comment.
Since last month, the San Diego firm has moved away from commercial land development and focused on obtaining contracts from the federal government and local municipal agencies.
In recent months, VTN Corp. has been trying to get a contract to help with the reconstruction of war-damaged Kuwait but has yet to win one. It is also negotiating with a consortium of Japanese and European companies to develop residences for Japanese retirees in the West African nation of Senegal.
VTN Southwest has done initial survey and site work on a 100,000-acre beachfront property in Senegal, said Alexander G. Montano, Daniel Montano’s son and an adviser to the chairman.
