MicroCoal® Technologies Inc. (CSE:MTI) announced the bankruptcy of Microcoal Inc., a US subsidiary, commenting that the filing is “in line with a larger corporate restructuring” that it plans to pursue for “various subsidiaries.”
As quoted in the press release:
The Company expects that the filing will have little impact on the Company’s overall corporate strategy. The Subsidiary’s primary asset is intellectual property, which the Company intends to repurchase during the reorganization. Substantially all of the outstanding debt of the Subsidiary is payable to the Company. The other potential obligations of the Subsidiary are disputed claims relating to litigation with two prior employees.
Lawrence Siegel, CEO of MicroCoal, commented:
The Board of Directors has consistently urged management to simplify and reduce the overall corporate framework and overhead, and this action is in line with the direction mandated by the Board.