A petition filed against hydraulic door manufacturer Hydroswing earlier this month has been successful, U.S. Bankruptcy Court records say. An answer to the petition was filed by an attorney for Hydroswing on Tuesday, saying the company admitted the allegations in the petition, and consented to an order for relief under Chapter 7 bankruptcy codes.
On March 3, a group of vendors claiming Hydroswing owed them thousands of dollars for goods and services filed a petition in the Minnesota district of bankruptcy court, to force the company into Chapter 7 bankruptcy.
An order for relief was granted in response to the petition on Tuesday by U.S. bankruptcy judge Gregory Kishel, court documents said. Under the order, Hydroswing has a week to provide a list of creditors and two weeks to file a schedule of assets and liabilities, and a statement of financial affairs. A trustee was also assigned to the case Tuesday, court records said. In a Chapter 7 bankruptcy, the trustee oversees the liquidation of a debtor's assets.
Hydroswing's manufacturing facility in Cottonwood has been closed for several weeks. Earlier this month, staff at the company's U.K. offices said the company was undergoing reorganization.
However, Hydroswing's answer to the bankruptcy petition, filed electronically by attorney Matthew Burton on Tuesday, said the company admitted the petition's claims, and consented to the entry of an order relief.
Petitioners against Hydroswing include three companies that supplied Hydroswing, and one that provided transportation services. In late March, attorneys for the city of Cottonwood and Wells Fargo Equipment Finance, Inc., also filed notice in the case.
- Deb Gau