Tru-Circle creditors to meet

Tru-Circle creditors to meet

Byline: Paul Burton

Creditors of bankrupt Tru-Circle Corp. will meet for the first time on Sept. 17 in Los Angeles, where the aerospace subcontractor filed for Chapter 11 bankruptcy protection after selling its Gardena, Calif., unit to Swift-Cor Precision Inc.

Wichita, Kan.-based Tru-Circle, which builds parts for defense contractors such as Boeing Corp., filed its petition on Aug. 12 with the U.S. Bankruptcy Court for the Central District of California. Also named in the filing were Tru-Circle Aerospace Corp. and Tru-Circle Manufacturing. Tru-Circle made a separate filing for the Gardena facility under Swift-Cor Tool Engineering Corp.

The company, which has three locations in Wichita and one in Kent, Wash., estimated its assets at $100,000 to $500,000 in its filing, and debt of $50 million to $100 million.

Tru-Circle has been sued seven times in the Kansas courts over the past year, including once by the company’s former president, Charles Lyke, over severance pay. Vendors claiming back pay have filed the other six.

Three judgments totaling about $78,000 have been recorded against Tru-Circle; three others are pending with claims amounting to about $136,000.

In the bankruptcy filing, financial consultancy IMA Corp. was listed as Tru-Circle’s largest unsecured creditor, at $74,103, followed by Ernst & Young and Blue Cross/Blue Shield of Kansas, at $58,840 and $35,129, respectively.

Nathan A. Schultz of Stutman, Treister & Glatt PC of Century City, Calif., is debtor counsel. Judge Ellen Carroll is hearing the case.

COMPANY: Tru-Circle Corp.

COMPANY: Swift-Cor Precision Inc.

COMPANY: Boeing Corp.


COPYRIGHT 2004 Gale Group