Monday, Feb. 11, 2008, 07:00 PM UPDATED 11:59 AMBy Nick Zulovich
DALLAS — Manchester and each of its subsidiaries recently announced that they have filed for protection under Chapter 11 of the Federal Bankruptcy Code.
Rick Gaines, Manchester's newly appointed president and chief executive officer said, "Manchester filed for bankruptcy protection due to an ongoing dispute with its senior secured creditor and intends to use this opportunity to resolve ongoing disputes that have adversely affected the company and its operations.
"Manchester is requesting and expects to receive authority from the bankruptcy court that will allow it to continue to operate in the ordinary course of business during its Chapter 11 cases, with very limited exception," he continued.
Manchester went on to indicate that it expects the following:
—Manchester's business divisions intend to continue to operate in the ordinary course.
—The company intends to pay wages and benefits in full and on time.
—It does not intend to have any layoffs related to the bankruptcy cases.
—Manchester expects that its current senior management team and all personnel will remain in place.
—The company intends to continue to operate on a "business as usual" basis.
—It expects the bankruptcy to result in a stabilized and financially stronger Manchester, one that is profitable and poised for future growth.
Gaines also explained, "The purpose of this bankruptcy is simple — to resolve ongoing disputes that have hampered Manchester's ability to conduct its operations.
"We have every intention of emerging from the protection of the Federal Bankruptcy Code with all Manchester's creditors paid in full and its shareholders' equity interest in Manchester preserved. During this process we will continue to conduct business in the ordinary course and pay our obligations as they become due," he concluded.