Denver-based Kolorfusion International Inc., a developer and marketer of patented methods for transferring color patterns to glass, plastics and other items, confirmed an old-fashioned bootstrap Chapter 11 plan last week.
Most companies these days either sell their assets or find themselves snapped up by bondholders in debt-for-equity exchanges. Smaller companies like Kolorfusion find themselves left to their own devices because major players in the financial markets don’t have interest in small companies.
Kolorfusion’s plan, filed in U.S. Bankruptcy Court in Denver, promises to give unsecured creditors with $2.3 million in claims a pro rata share of half of net profits over the next five years. The disclosure statement didn’t venture a guess about the percentage recovery.
Other creditors, like equipment lessors and lenders, agreed to restructure their obligations. Shareholders retain their stock.
The company listed assets of $445,000 against debt totaling $2.3 million.
