American Film Tech Files for Chapter 11
American Film Technologies Inc., a financially troubled North Hollywood producer of animation and special effects for movies and television, said it filed for protection from its creditors under Chapter 11 of the U.S. Bankruptcy Code.
Despite the filing, the company said it is still in discussions with a possible equity investor. As previously reported, American Film said earlier this month that New York attorney and investment banker Gerald M. Wetzler would acquire 75% of American Film for about $3.3 million.
Trading in the common stock of American Film was temporarily halted by Nasdaq at the company’s request Friday, when American Film announced its bankruptcy filing.
Filing Chapter 11 gives a company a chance to reorganize its finances with the goal of emerging from bankruptcy.
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