Requested bid for EIT: $250K

By Dave Greber

Requested bid for EIT: $250K

July 15, 2013 Updated Jul 16, 2013 at 9:05 AM EST

(WBNG Binghamton) Although officials from Endicott Interconnect said last week the company owed $70 million in debts, the real number is some $20 million more, according to federal court documents filed Monday evening.

Endicott Interconnect had liabilities before it filed its bankruptcy petition July 10 of nearly $87 million, according to documents filed just after 6 p.m. Monday in U.S. Bankruptcy Court, Northern District of New York.

But it told employees in a letter dated the same day its debts totaled $70 million.

The Clark Street company is looking to unload that debt and more to the highest bidder, and told the court it would consider selling for $250,000.

"In order to ensure the continued operation of the EIT manufacturing facility, the retention of approximately 600 jobs and the fulfillment of its obligations to customers, on July 15, 2013, EIT entered into the Purchase Agreement with Integrian," court documents state.

Integrian is owned by James T. Matthews, a minority shareholder of EIT.

If that's approved, the company and its assets and liabilities could be settled by the end of the summer.

The company requested a bidding deadline of Aug. 15, a possible auction on Aug. 19, and a sale hearing Aug. 20, as long as it receives more than one bid, or a bid greater than $50,000 more than the initial $250,000.

A decision about the sale to Integrian or the dates set by the company has not been handed down.

Among the company's debt, more than $27 million is owed to its 20 largest creditors, according to Wednesday's bankruptcy filing.

The largest unsecured claim is with IBM for nearly $5.5 million, according to documents.

However, Monday's filing says it has total liabilities of approximately $86.9 million and general unsecured claims of nearly $70.8 million. It owes M&T Bank/Integrian $6.1 million, William and David Maines $5 million and Integrian Holdings nearly $5 million, court records show.

The company says it plans to meet its commitments to all customers, and that employee wages and health benefits are not expected to change as a result of the Chapter 11 filing.

Other changes will occur, however. The company's interim CEO, Jim Matthews, Jr., -- who took over this spring after former CEO Jay McNamara resigned -- will step down to focus on the restructuring plan.

It's the latest in a series of blows for EIT.

In a court filing in April, McNamara told a federal judge if the company's private jet were taken away, and it lost a subsequent lawsuit, the result would likely be bankruptcy.

One of two occurred the following month, when U.S. District Court Southern New York Division Judge Jed S. Rakoff ordered U.S. Marshals to seize the Hawker 800 corporate jet, which was at the time parked at Binghamton Regional Airport.

Canal Air, LLC -- a subsidiary of General Electric -- is suing Endicott Interconnect because the Broome County employer missed a nearly $77,000 rent payment on the private jet Canal owns.

In a separate lawsuit, Canal is asking for $11.5 million because EIT missed the payment. McNamara told the court a ruling for removal of the corporate jet would add prejudice to the subsequent $11.5 million lawsuit. The judge disagreed.

McNamara said in an April letter to the court that losing both lawsuits would cost the future of EIT, and the company's estimated 605 jobs.