Claims Start to Mount Against Truland Systems

by San Antonio Attorney

Truland Systems Corp.’s first bankruptcy hearing is scheduled this Wednesday. A Chapter 7 liquidation bankruptcy case was filed by the electrician workers against the company after it abruptly closed on July 21.

Company officials have been silent since the shut down, which is greatly affecting the people in the D.C. area. Truland hired hundreds of employees across Washington and was engaged in many projects that have been affected by the bankruptcy.

The company’s trustee Klinette H. Kindred is scheduled to go to court on Wednesday to ask permission to use Truland’s cash on hand in closing down the business, which includes termination of leases.

The electric company has not yet provided the court with details regarding its financial situations, but a court document shows it owes $27 million to BMO Harris Bank N.A. The debt was secured by almost all of the assets of the company.

Truland had a relatively long relationship with various companies. Clark Construction Group. retained the electric company’s service on many projects in DC-area. Clark has requested the court to allow it hire replacement workers for some of that job, including constructions to CityCenterDC and The George Washington University’s Science and Engineering Complex. A CityCenterDC representative has said its base building is now almost finished and Truland’s bankruptcy has only a minor effect to the project.

According to Clark’s CEO & president Brian Abt, the company is working to ensure its contract obligations are fulfilled and its projects continue to progress properly.

Even if the company does not approve, creditors can literally force a business into Chapter 7 liquidation under certain circumstances. But unlike voluntary petition, a company is not instantly put into bankruptcy and it may still operate its business and acquire, use, or dispose of its assets as if a case had not been filed against the company.

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