The Wall Street Journal is reporting that famed ice cream snack maker, Dippin’ Dots , has filed for Chapter 11 bankruptcy.
The self-described manufacturer of the “ice cream of the future” – translated: liquid nitrogen frozen, bead-like treats – made the following news release Friday morning:
“Dippin’ Dots, Inc. announced it has filed an action in Federal Court seeking protection under Chapter 11 of the Federal Bankruptcy Code as the result of a failure to reach an agreement with its secured lender Regions, following several attempts to do so.”
Court documents show that at the time of the filing, Dippin’ Dots Inc. owed a little more than $11 million to the bank. According to the WSJ, the company, which “has no alternative borrowing source and to remain in business,” is requesting that a judge allow it to use cash collateral to continue operations.
“This action represents the unfortunate conclusion of a ten-plus year productive relationship between Dippin’ Dots and Regions. Dippin’ Dots, Inc. does not anticipate that this situation will interrupt its ability to deliver supplies or service to any of its valued customers during this period. Under a plan of reorganization, Dippin Dots, Inc. will seek an equitable restructuring of debt that will allow the company to honor obligations to its vendors and other stakeholders.”
In its bankruptcy petition, the Paducah, Ky.-based company said its assets are worth $20.2 million while its debts have risen to $12 million.
Are you a fan of Dippin’ Dots? To see how the futuristic treats are made, check out the video below: via WSJ
