Todd Fox spoke to creditors in U.S. Bankruptcy Court on Feb. 29, explaining how he plans to liquidate Fox Collision Repair’s assets to pay nearly 100 pages of creditors. Fox appeared with his bankruptcy attorney, Ed Nazar, in the U.S. Trustee’s office.
Fox abruptly shut his 18 shops in October, leaving employees and creditors unpaid, and he filed for bankruptcy in January with more than $7 million in debts.
According to The Wichita Eagle, Fox described the failed company’s finances using words such as “estimate” and “guess,” and struggled to answer questions regarding the bankruptcy. Nazar told the court that he thinks Fox Collision Repair’s liquidation will bring in enough money to pay employees for approximately two weeks of wages they’re owed.
Since Fox and Nazar cannot access the company’s financial software because of failure to pay the vendor, Nazar said he didn’t have a complete inventory of assets. Adding to Fox’s problems, M&I Bank, the company’s primary lender, won’t advance money to close down the company.
The liquidation will take months to complete, Nazar told creditors. The Wichita Eagle reports that some of the equipment that would have been sold was stolen in Oklahoma.
