The company said it had $126,288 in assets and $750,886 in liabilities, according to the petition.
Cabinet Enterprises LLC acquired Knapke Cabinets from Bernard and Nicole Knapke through an Article 9 sale in February. An Article 9 sale is a means of transferring ownership of a distressed company through the Uniform Commercial Code.
From February through the end of August, the company said it had accrued a net loss of $321,757.
The sole member of the LLC, Jack Berger, and the company’s bankruptcy attorney, Roger Luring, could not immediately be reached for comment Tuesday morning.
Chapter 11 protection frees a company from the threat of creditors’ lawsuits while it reorganizes its finances. The debtor’s reorganization plan must be accepted by a a majority of its creditors. Unless the court rules otherwise, the debtor remains in control of the business and its assets.
Contact this reporter at (937) 225-7457 or bsutherly@DaytonDailyNews.com.
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