Naming nearly 40 material suppliers as creditors, machining manufacturer and vendor Liboon Group declared Chapter 7 bankruptcy on January 8, 2021, according to a filing with the US Bankruptcy Court for the Central District of California.
Liboon Group, doing business as Velox CNC is based in Orange, California, a suburb of Los Angeles.
With a debt ratio of nearly 6.5, the manufacturer and vendor claims in their bankruptcy petition liabilities of $1.4 million to a combined 82 creditors. The company lists 16 secured claims, seven priority unsecured claims, and 59 nonpriority unsecured claims.
Of the 82 creditors, 39 are material suppliers with nonpriority unsecured claims.
Liboon Group lists the following totals in their bankruptcy petition:
- $1,459,039.72 in total liabilities
- $225,823.63 in total assets
- $823.63 in total checking
- $0 in accounts receivable
Between 2019 and 2020, Liboon Group saw a 37.3% decrease in gross revenue. Liboon Group reportedly earned $934,738 in gross revenue in 2020, a sharp decline from $1,491,547 in the company’s 2019 revenue.
A Chapter 7 bankruptcy results in the liquidation of the debtor’s nonexempt property. Proceeds from the liquidation are distributed to creditors.
Creditors listed with secured claims are typically paid out first under a Chapter 7 bankruptcy case. Unsecured claims are addressed with remaining funds, with priority unsecured claims paid first, followed by nonpriority unsecured claims.
Creditors
The 16 secured claims total a combined $854,674.25, most owed to various banks. The U.S. Small Business Administration owns a $150,000 UCC lien, the largest of the secured claims.
Liboon Group reports 66 unsecured claims worth a combined $604,365.47.
Seven priority unsecured claims listed in the bankruptcy filing are worth a combined $22,440, while 59 nonpriority claims total $581,925.47.
The 39 material suppliers with nonpriority unsecured claims include:
- AIRGAS USA – $714.40
- Amana Tool – $124.65
- American Spindle Technology – $4,740
- AnTek Products Corporation – $680
- Automation Direct – $4,003.25
- B&B Manufacturing, Inc. – $855
- Benner Metals – $6,436
- Bottom Line Business Solutions, Inc. – $4,657.50
- Brevetti – $1,609.04
- Coast Aluminum – $3,191.51
- Delta Electronics – $1,677.50
- Digi-Key – $1,933.51
- Electriduct, Inc. – $253.22
- Exair Corporation – $323
- FLASHCUT CNC – $4,500
- Golden State Fasteners, Inc. – $418.27
- Helix Linear Technologies, Inc. – $1,229.76
- HiTeco – $8,063
- Home Depot Commercial Card – $3,469.82
- HSD USA – $0
- IGUS, Inc. – $561.63
- Kenbil Service Company, Inc. – $67.20
- Leadshine America, Inc. – $49,093
- McMaster-Carr – $5,957.02
- Moore Gear – $5,056.26
- Mouser Electronics – $214.57
- New Century Bearing Technology Co. – $6,303.87
- QA LUBRICANTS – $182.12
- Saffer Trading Company – $5,625
- Sherline Products – $635.92
- Southern California Edison – $383.07
- The Home Depot – $2,988.14
- TRC Electronics, Inc. – $462.95
- Uline – $315.60
- United Parcel Service – $1,157.64
- USPS-US Postal Service – $31
- Western Switches and Control, Inc. – $1,938.76
- Wire And Cable Your Way – $403.95
- Woodcraft Supply – $1,220