US Flow Starts To Liquidate; Tries Reselling To Former Owners
Within a span of days within the second week of September, a U.S. Bankruptcy Court at first denied and then allowed US Flow Corp. to convert from a Chapter 11 to Chapter 7 bankruptcy. Chapter 11 is aimed at reorganizing the business to continue operations, while Chapter 7 presages liquidation.
The initial decision forced the Grand Rapids, Mich.-based PVF distributor to shut down operations without warning. Chapter 7 status allows the company to use a limited supply of cash to support business operations, in this case only till the end of September. As we went to press, the company was scrambling to call key employees back to work.