Wheeling-based Bowe Bell & Howell enters bankruptcy
Wheeling-based Bowe Bell & Howell, a maker of high-speed mail-sorting equipment and software developer, has sought bankruptcy court protection and agreed to sell itself to creditor Versa Capital Management Inc. to pay off debt.
The company related to the Bell & Howell movie-projector maker, listed as much as $500 million each of debt and assets in yesterday's Chapter 11 filing in U.S. Bankruptcy Court in Wilmington, Delaware.
Versa holds a majority of the debt, which will be resolved through the sale, the company said in a statement distributed by Business Wire. A hearing is tentatively scheduled for May 4 to set auction procedures.
Its BBH Canada unit will ask an Ontario Superior Court judge to recognize the U.S. bankruptcy proceedings, the company said. That would prevent creditors in Canada from suing to recoup their debts.
“While the past few years have been challenging for most businesses, they have been especially so for BBH due to a variety of legacy factors,” Chief Executive Officer George Marton said in the statement. “We have also received commitments from Versa to provide new financing.”
Among the company's largest unsecured creditors listed in court papers are Boewe Systec GmbH of Augsburg, Germany, owed $12.7 million; and the company's pension plan, owed $10.9 million.
The closely held firm, also known as Boewe Bell & Howell, employs about 1,600 people. Bell & Howell started making film projectors in the early 20th century in Chicago and later sold movie cameras. Bowe Systec bought a 50 percent stake in Bell & Howell in 2002 -- and now owns 100 percent, according to court papers.
The case is In re Bowe Bell & Howell Holdings Inc., 11- 11186. U.S. Bankruptcy Court, District of Delaware (Wilmington).