Hess Industries, Inc.
Hess Industries, Inc (Hess), a leading manufacturer of metal-forming machines based in Niles, MI, filed for Chapter 7 Bankruptcy protection on July 10, 2012. At the time of the filing, Hess estimated assets in excess of $10 million, primarily consisting of trade receivables, furniture and equipment and inventory.
ACCOUNTS RECEIVABLE:
At the time of the filing, Hess estimated 7,326,733.71 in trade accounts receivable. Based on a preliminary review by the Trustee and his professionals, it was estimated that 600,000 was collectible. To date, the Trustee has collected $1,720,934.93 in Trade Accounts receivable, including $50,000 in accounts receivable that was unbilled at the time of the filing.
MACHINERY, HARDWARE, AND SOFTWARE:
On November 8, 2012 an order was entered, after an auction, authorizing the sale of substantially all of Hess' assets to Zhejiang Jingu Company Limited, and Pacific Wheel, Inc. and included:
- All Truck Line Assets
- All Tooling Assets
- Office Furniture and Equipment
- All Tradenames, Drawings, and Product Technology
- All inventory (Raw Materials and Work in Process)
- The rights, claims, credits, causes of action and rights of set-off against third parties related to the Purchased assets
For the assets listed above, the Trustee received a total of $19,250,000.00
In addition, the Trustee has sold miscellaneous automobiles and inventory as scrap, generating approximately an additional $24,000.
MISCELLAENOUS COLLECTIONS:
The Trustee has also worked to secure turnover of bank funds, collection of miscellaneous refunds and deposits. Overall, these actions have brought approximately $405,000 into the estate.
AVOIDANCE ACTIONS:
The Trustee and his professionals evaluated all cash disbursements of Hess for the 90 day period and beyond. The Trustee issued 27 demand letters seeking to avoid 90 day transfers. To date, the estate has collected $56,300 as a result of those actions. As of June 30, 2017, there are currently no open adversary cases.
The Trustee has filed a D&O cause of action against certain former officers and directors. The Trustee also filed suit for recovery of an insider preference from the company's owner. In February 2016, an order approving the Global Settlement with the Trustee was entered, resulting in a settlement of $2,350,000, which was received on March 25, 2017.
STATUS OF CASE:
There are currently no significant assets left to be administered. Cash on Hand as of June 30, 2017, is $2,736,566.01. The Trustee is currently in the process of evaluating claims against the estate.
PROFESSIONAL FEES - OUTSTANDING ORDERS:
There are currently no outstanding professional fee orders as of June 30, 2017.