On August 9, 2015, ZLOOP, INC., and two affiliates, Zloop Knitting Mill LLC and Zloop Nevada, LLC filed voluntary chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware. The cases have been assigned to The Honorable Kevin J. Carey and are docketed as case no. 15-11660. Zloop's Chairman and CEO, Robert M. Boston, filed an affidavit in support of the petitions.
In his affidavit, Mr. Boston describes the debtors' business as providing three types of services: "(i) end of life recycling for electronics or electrical equipment; (ii) on-site and off-site secure and audited data destruction; and (iii) pre-consumer, post-consumer and mixed plastics recycling."
Zloop owns 100% of the membership interests in the other two debtors and 100% of the membership interests in Zloop International Ltd., a Belize limited liability company.
According to Mr. Boston, in the petition date the Debtors held approximately $25 million in assets and total liabilities of $32 million. Mr. Boston notes that the material debt is disputed debts owed to a franchisee relating to recission of a franchise agreement and other claims alleged to be owed to the same franchisee. Additional listed debt is a $3.5 million mortgage and about $400,000 in trade debt.
The debtor is not seeking additional financing, but is seeking to use cash collateral to finance the chapter 11 cases.