DT Industries Inc. Files for Chapter 11 Bankruptcy with $10.01 Million Unsecured Creditor

Strategic Insights -

DT Industries Inc., a maker of assembly line machines based in Dayton, Ohio, has filed for Chapter 11 bankruptcy protection, citing a weak capital goods sector and softness in its core electronics market as key contributing factors to its financial struggles. The company's largest unsecured creditor, Citicorp Inc., is owed $10.01 million, with other creditors including David Babson, CNA Financial Corp., and MCI Inc. DT Industries obtained debtor-in-possession financing and has reached an agreement to sell four divisions to former workers and Assembly & Test Worldwide Inc.

Key Takeaways:

  • DT Industries Inc. filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court for the Southern District of Ohio's Western Division in Dayton.
  • The company's largest unsecured creditor, Citicorp Inc., is owed $10.01 million.
  • Other creditors include David Babson, CNA Financial Corp., MCI Inc., Lockton Cos., the state of Delaware, and former director John F. Logan of Heathrow, Fla.
  • DT Industries obtained debtor-in-possession financing and has reached an agreement to sell four divisions to former workers and Assembly & Test Worldwide Inc.
  • The company plans to use proceeds to pay off its DIP loan and some of its senior loans, with remaining assets to be liquidated.
  • DT Industries does not expect to have any money to pay unsecured creditors or shareholders.

Statistics:

  • $10.01 million: The amount owed by DT Industries Inc. to its largest unsecured creditor, Citicorp Inc.
  • $85,507: The amount owed by CNA Financial Corp. to DT Industries Inc.
  • $83,859: The amount owed by MCI Inc. to DT Industries Inc. for an unpaid phone bill.
  • $77,407: The amount owed by Lockton Cos. to DT Industries Inc.
  • $66,000: The amount owed by the state of Delaware to DT Industries Inc. for a franchise fee.
  • $61,000: The amount owed by former director John F. Logan of Heathrow, Fla. to DT Industries Inc. in deferred compensation.

Sources:

  • DT Industries Inc. press release regarding bankruptcy filing
  • U.S. Bankruptcy Court for the Southern District of Ohio's Western Division in Dayton docket
  • The Deal.com, "$10.01 Million Creditor Slaps DT Industries"