Beehive International has filed for voluntary protection under Chapter 11 of the Federal Bankruptcy laws.
Beehive Chairman Thomas A. Howard said "serious manufacturing problems" between Utah-based Beehive and its contract manufacturer, S.E.L., a division of Alcatel, had placed Beehive in a non-recoverable cash crisis.Last week, Howard reported that Beehive was in the process of selling a number of its assets to FX International, LTD, the parent of Future International of Pleasanton, Calif., a Beehive competitor. "The Beehive/Future agreement has been consummated conditional only upon approval by the Bankruptcy Court which will be sought within the next few weeks," said Howard.
"Our efforts at Beehive are focused upon maximizing the return to all of Beehive's claimants through the sale of assets and by establishing a small administrative entity to manage and monitor the collection of all receivables, royalties and license fees," said Howard. "Chapter 11 will give us an official court-approved vehicle to accomplish this goal."
A detailed reorganization plan is expected to be filed with the court within the next few weeks. Howard said he will be working closely with Beehive's creditors to formalize the plan.