The once omnipresent ice cream company has struggled with finances for quite some time. Even after their bankruptcy filing last November, the company continues to fight to resolve debts and stay afloat. With more than $11 million in debt hanging over their heads the company is seeking a bankruptcy loan if they are to have a chance at debt restructuring.
Needing A Favor
Dippin’ Dots Inc. has made a formal request to the bankruptcy judge for accepting a debtor-in-possession loan as part of their case. The $2 million loan is reported to be “necessary” to fund continued manufacturing operations while executives seek out investors for the remaining pieces of the company. Attorneys for the company said in a statement earlier this week, “The [company] has an urgent and immediate need for cash to continue to operate its business. Without sufficient cash to operate and pay expenses, the [company] will not be able to pay its bills that are currently due.”
The requested loan is said to come from Fischer Ventures LLC, a company that is owned by Mark Fischer, who owns an oil-and-gas exploration company in Oklahoma. Many are opposed to the loan, which is being said to be an attempt to fraudulently keep creditors out of pocket in the case. Meanwhile, other plans are in the works to sell portions of the company to investors in exchange for absolving debt liabilities in the process.