Daisytek U.S. Subsidiaries File Chapter 11 Bankruptcy16 May, 2003
Daisytek U.S. Subsidiaries File Chapter 11 Bankruptcy
After warnings investors of significant fourth quarter 2003 results and announcing the resignation of James Powell as President and Ceo, U.S. subsidiaries of Daisytek International Corporation announced the filing of a voluntary petition for reorganization by Allen, Texas-based Daisytek, Incorporated and certain other U.S. subsidiaries, including Arlington Industries, Inc., Digital Storage Inc. and The Tape Company, under Chapter 11 of the U.S. Bankruptcy Code.
Neither Daisytek International Corporation nor any of its foreign subsidiaries in Canada, Mexico, Australia, Argentina and Europe were included in the filing.
“After exhausting all non-judicial financing options available to Daisytek and implementing aggressive cost-saving measures during the last few weeks, reorganization under Chapter 11 is the practical and expedient avenue for relief from the liquidity challenges that are inhibiting the ability of our U.S. subsidiaries to conduct normal business in the United States,” stated Dale A. Booth, interim president and CEO of Daisytek. “It became apparent in discussions with interested investors and purchasers of certain assets that they would be more comfortable having discussions while the U.S. subsidiaries are under the protection of the U.S. Bankruptcy Code.”
Booth will lead the reorganization process with John D. "Jack" Kearney, Executive Vice President/Chief Restructuring Officer and Eric T. Logan, who was recently named interim chief financial officer.