The Mitchell Gold Co. files for Bankruptcy in Delaware
The Times received a letter recently, announcing the Bankruptcy filing for The Mitchell Gold Co., LLC.
On August 31, 2023, and September 6, 2023, Arkansas-based SG-TMGC, LLC and The Mitchell Gold Co., LLC (MG+BW), of Taylorsville, NC, filed voluntary petitions in the United States Bankruptcy Court for the District of Delaware, seeking relief under Chapter 11 of the United States Bankruptcy Code. The case was filed before Judge Laurie Selber Silverstein.
According to court filings, MG+BW is a wholly owned subsidiary of SG-TMGC. SG-TMGC has no operations other than holding the stock of MG. SG-TMGC is owned by The Stephens Group, LLC, in Arkansas, and the Sorrells Joint Revocable Trust.
Dalton Edgecomb, Chief Restructuring Officer of debtors The Mitchell Gold Co., LLC, and SG-TMGC, LLC, in a declaration filed Sept. 12 stated, the filing was “a chronicle of the unexpected downfall in operations of a great American company due, to a significant degree, to the restrictive lending tactics and conduct of PNC [Bank].” For fiscal year 2022, MG+BW had total net sales of approximately $199 million. Sadly, the sale of the company to an investor fell apart, and so did financing negotiations, resulting in the company’s closure August 26, leaving more than 500 jobless.
More details are available in the court filings at: https://dm.epiq11.com/case/mbw/info
An Order Converting Debtors’ Chapter 11 Cases to Cases Under Chapter 7 of the Bankruptcy Code was approved on October 6. According to multiple legal websites, this can happen if the business debtor is not meeting the terms of the reorganization bankruptcy or if the debtor simply wishes to liquidate assets and pay creditors from the proceeds.
