Elite Electric of Washington II Inc., of Spokane, has filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court here.
In its voluntary filing, the company says it has $1.3 million in assets, including about $1 million in accounts receivable, and $1.4 million in liabilities.
The company, located at 3718 E. Queen, does electrical contracting work. In the filing, the company said it had gross revenues this year of less than $4.8 million as of November of 2009, compared with gross sales of $7.3 million for 2007.
Kevin O'Rourke, the bankruptcy attorney who's representing the company, says that Elite Electric, which has been operating here for seven years, was forced to file bankruptcy because margins on construction projects have substantially decreased in the down economy, and it has had severe difficulty in receiving payment on jobs it has completed.
The company plans to file soon a reorganization plan to repay its creditors in full, and will continue operating at the same location, O'Rourke says. It employs 24 people, all of whom it expects to retain.
In the filing, the company identifies 109 creditors to which it owes about $300,000 in secured claims and about $1.1 million in unsecured claims. The largest secured debt listed is to $170,000 owed to Washington Trust Bank for accounts receivable, inventory, equipment and other miscellaneous items. The largest unsecured debt noted in the filing is for $237,000 owed to Stoneway Electric Supply, of Spokane. In the filing, Kerry Warren is listed as the company's president and majority owner.
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