Orange County Choppers Merchandising Files for Bankruptcy
Posted March 15, 2013
In another case which just shows that chapter 7 bankruptcy is an appropriate solution for many, Orange County Choppers Merchandising, owned solely by Paul Teutul, Sr. has filed for chapter 7 bankruptcy protection on January 21, 2013 in New York.
Orange County Choppers became famous primarily to the Discovery television show that father and son as they grew the business from a basement enterprise to a large recognized corporate identity.
Hudson Valley Merchandising, LLC, formerly known as Orange County Choppers Merchandising, stated they had no assets other than money it was owed from various companies. It listed total money due it as $1,115,558 with the bulk owed by Horizon NY, Inc, $884,579.94.
The company appears to not own any tangible real assets. The extent of the company assets is only money owed to it by other companies.
As far as liabilities, the bankruptcy filing listed a number of judgments against the Paul Teutul, Sr. company that must have been obtained after the company was repeatedly sued.
The company listed liabilities of $1,441,520.91.
WR Case & Sons Cutlery - $226,834
Vending Supply, Inc. - $261,325
Unisystems, Inc / Modern Publishing - $62,671
Stretch O Rama / Longstreet - $73,737
Jonathan Harvey Law Firm - $113,463
Houston Harvest - $259,782
C-Life Group - $166,231
Briefly Stated - $140,427
Bio World Merchandising - $137,048
According sources, the debt is the result of six years of legal battles and the money owed by Orange County Choppers Merchandising represents legal fees and penalties the company was responsible for.
According to court documents, Paul Teutul, Sr. is the sole and 100% owner of Orange County Choppers Holdings, Inc.
The company paid $9,000 to file this bankruptcy.
The bankruptcy trustee in this case has hired an outside law firm to attempt to collect the money owed Orange County Choppers Holdings for distribution to creditors. The firm, DEILY, MOONEY & GLASTETTER, will receive 30 percent of any money it collects and will only be compensated on a contingency basis from money it actually collects.
If you would like to read the full bankruptcy filing, click here.