Fallbrook/NuVinci files for Chapter-11

Damn...first BionX having troubles, now this...

http://www.bike-eu.com/sales-trends...es-chapter-11-bankruptcy-proceedings-10133012

They are clearly saying Chapter 11 restructuring. So that domino may not be falling at all.

Chapter 11 means they're insolvent and need protection from those they owe money. If they stay in business, it will be because someone assumes their debt in return for ownership. Who that would be, I'm not sure.

Theirs is a good product, and I hope somebody keeps making the hubs. Gearhubs don't seem to excite people's imaginations lately, though.

Chalo said:

Chapter 11 means they're insolvent and need protection from those they owe money. If they stay in business, it will be because someone assumes their debt in return for ownership. Who that would be, I'm not sure.

Theirs is a good product, and I hope somebody keeps making the hubs. Gearhubs don't seem to excite people's imaginations lately, though.

Click to expand...

From the link:
In a press release on the Chapter 11 filing Fallbrook further says on the Chapter 11 bankruptcy proceedings “In connection with the filing, the Company entered into a Restructuring Support Agreement with some of its largest creditors to support a Plan of Reorganization. In addition, subject to Bankruptcy Court approval, Fallbrook has an agreement to secure debtor-in-possession financing as well as post-exit financing. This restructuring will best position Fallbrook to grow the NuVinci CVP technology and expand our community of licensees. We are thankful to our dedicated employees who remain focused on the advancement of Fallbrook’s innovative and unique technologies supporting applications across multiple markets.”

It seems like they are looking for cooperation/help from their existing creditors.