Soapboxmom
03-12-2011, 06:29 PM
Eniva files for bankruptcy protection
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Jim Hammerand
Staff Writer
Email: jhammerand@bizjournals.com (jhammerand@bizjournals.com)
Nutritional supplement maker Eniva (http://www.bizjournals.com/profiles/company/us/mn/blaine/eniva_corp/2596600/) Corp. filed for Chapter 11 bankruptcy protection Tuesday in a last-minute bid to avoid eviction from its Anoka headquarters.
The company owes between 200 and 999 creditors and listed debts of $10 million to $50 million and assets in the same range, according to the filing signed by President and CEO Andrew Baechler.
"The filing was precipitated by an eviction proceeding commenced by the court-appointed receiver for the building," said Eniva bankruptcy attorney Mike McGrath of Minneapolis law firm Ravich, Meyer, Kirkman, McGrath, Nauman & Tansey.
The Wednesday morning eviction hearing, requested by Plymouth-based Results Real Estate Inc (http://www.bizjournals.com/profiles/company/us/mn/plymouth/results_real_estate_inc/2661729/),. was canceled after the bankruptcy filing, court records show.
The redemption period for the building ends March 30, six months after a sheriff's sale initiated by Minneapolis-based lender Northeast Bank (http://www.bizjournals.com/profiles/company/us/mn/minneapolis/northeast_bank/3249358/). McGrath said Eniva will reject its lease in bankruptcy and angle for a new lease for less space. Failing that, the company will relocate, he said.
Revenue at the once-booming business has stabilized in recent months, but "the company just isn't in a position to occupy all that space," McGrath said.
The fast-growing company (http://www.bizjournals.com/twincities/stories/2007/10/22/daily49.html) Eniva made the 435,000-square-foot building its headquarters in 2008 (http://www.bizjournals.com/twincities/stories/2007/07/30/story3.html).
The company's 20 largest unsecured creditors are collectively owed more than $2.49 million, according to the filing. Eniva said it believes that those creditors will recover at least some of that amount.
The largest unsecured creditor is Minneapolis law firm Moss & Barnett (http://www.bizjournals.com/profiles/company/us/mn/minneapolis/moss_&_barnett/2660993/), which defended the company against a chemist's lawsuit that alleged he was fired after rejecting a female supervisor's advances.
The former employee said his manager inappropriately winked at, touched and threatened to spank him. He also alleged that the company fired him for complaining. Eniva settled the suit in October 2009 on undisclosed terms, less than a month before a trial was set to start. The case was dismissed in February 2010.
McGrath said the settlement did not contribute to the filing. Moss & Barnett is owed $375,210.
Read more: Eniva files for bankruptcy protection | Minneapolis / St. Paul Business Journal (http://www.bizjournals.com/twincities/blog/law/2011/03/eniva-files-for-bankruptcy-protection.html#ixzz1GQmIRrJy)
http://assets.bizjournals.com/twincities/blog/Hammerand_Jim_sm.jpg
Jim Hammerand
Staff Writer
Email: jhammerand@bizjournals.com (jhammerand@bizjournals.com)
Nutritional supplement maker Eniva (http://www.bizjournals.com/profiles/company/us/mn/blaine/eniva_corp/2596600/) Corp. filed for Chapter 11 bankruptcy protection Tuesday in a last-minute bid to avoid eviction from its Anoka headquarters.
The company owes between 200 and 999 creditors and listed debts of $10 million to $50 million and assets in the same range, according to the filing signed by President and CEO Andrew Baechler.
"The filing was precipitated by an eviction proceeding commenced by the court-appointed receiver for the building," said Eniva bankruptcy attorney Mike McGrath of Minneapolis law firm Ravich, Meyer, Kirkman, McGrath, Nauman & Tansey.
The Wednesday morning eviction hearing, requested by Plymouth-based Results Real Estate Inc (http://www.bizjournals.com/profiles/company/us/mn/plymouth/results_real_estate_inc/2661729/),. was canceled after the bankruptcy filing, court records show.
The redemption period for the building ends March 30, six months after a sheriff's sale initiated by Minneapolis-based lender Northeast Bank (http://www.bizjournals.com/profiles/company/us/mn/minneapolis/northeast_bank/3249358/). McGrath said Eniva will reject its lease in bankruptcy and angle for a new lease for less space. Failing that, the company will relocate, he said.
Revenue at the once-booming business has stabilized in recent months, but "the company just isn't in a position to occupy all that space," McGrath said.
The fast-growing company (http://www.bizjournals.com/twincities/stories/2007/10/22/daily49.html) Eniva made the 435,000-square-foot building its headquarters in 2008 (http://www.bizjournals.com/twincities/stories/2007/07/30/story3.html).
The company's 20 largest unsecured creditors are collectively owed more than $2.49 million, according to the filing. Eniva said it believes that those creditors will recover at least some of that amount.
The largest unsecured creditor is Minneapolis law firm Moss & Barnett (http://www.bizjournals.com/profiles/company/us/mn/minneapolis/moss_&_barnett/2660993/), which defended the company against a chemist's lawsuit that alleged he was fired after rejecting a female supervisor's advances.
The former employee said his manager inappropriately winked at, touched and threatened to spank him. He also alleged that the company fired him for complaining. Eniva settled the suit in October 2009 on undisclosed terms, less than a month before a trial was set to start. The case was dismissed in February 2010.
McGrath said the settlement did not contribute to the filing. Moss & Barnett is owed $375,210.
Read more: Eniva files for bankruptcy protection | Minneapolis / St. Paul Business Journal (http://www.bizjournals.com/twincities/blog/law/2011/03/eniva-files-for-bankruptcy-protection.html#ixzz1GQmIRrJy)