Newport converts case to Chapter 7
July 26, 2013-- Furniture Today,
JACKSON, Miss. - Upholstery producer Newport Furniture, which filed for Chapter 11 bankruptcy protection in June, has converted its case to a Chapter 7 liquidation proceeding.
The switch was approved by U.S. Bankruptcy Judge Jason Woodard, who ruled that a Chapter 7 case "is in the best interest of creditors and other parties in interest."
In his order, Woodard also noted that the Chapter 11 filing was a voluntary action, and no trustee had yet been appointed. The order stated that a Chapter 7 trustee should be appointed "at the earliest practicable time."
The company, which is based in New Albany, Miss., and has exhibited at the Tupelo Furniture Market, estimated its assets at $1 million to $10 million and liabilities of $10 million to $50 million in the original filing.
Court documents include a listing of its 20 largest creditors - most of which are suppliers of components and fabrics.
The largest creditor is a Shanghai-based company called Newport Furniture Co. (China), which is owed $7.17 million.
Other large creditors include American Global Logistics, which is owed $133,100; Consolidated Fibers, owed $123,785; and L8J products, owed $688,699.
L8J Products is owned by Larry Jackson, the owner of Sleeper Kraft, a supplier of sleeper mattresses and components. Sleeper Kraft is listed separately as a creditor that is owed $32,421.