Iron Horse Files Chapter 11


Iron Horse filed for Chapter 11 reorganization this past Tuesday after originally having originally filed Chapter 7 bankruptcy.  Read the full scoop at Bicycle Retailer.

CENTRAL ISLIP, NY (BRAIN)—A judge converted the Iron Horse Bicycle Company bankruptcy case from Chapter 7 liquidation to Chapter 11 reorganization on Tuesday.

Andrew Thaler, a newly appointed attorney for Iron Horse, filed a statement requesting the change on Monday in the Eastern New York District of U.S. Bankruptcy Court.

Three of Iron Horse’s Asian factories filed an involuntary petition for bankruptcy on March 2 in an attempt to recoup $5 million apparently owed to them by the bicycle company.

Thaler’s filing states that Iron Horse doesn’t contest the petitioning creditors attempt at relief under the bankruptcy code, but referred to a portion of the code that allows a debtor to convert a case from Chapter 7 to Chapter 11 at any time.

The judge agreed and the case will move forward as a Chapter 11. The deadline for a Chapter 11 plan and disclosure statement is August 4.

Also, this week, Cliff Weidberg filed an application for authorization to retain Thaler’s law firm, Thaler & Gertler, LLP, to represent Iron Horse in the Chapter 11 case.

Weidberg said he has paid the firm a $75,000 retainer—$50,000 of which came from his own pocket—and will pay all the firm’s other customary fees in exchange for advice, preparation of documents and representation in court.

Thaler & Gertler will also negotiate with creditors, preparing a plan of reorganization and taking the legal steps to carry out that plan.

According to the initial involuntary bankruptcy filing, Iron Horse owes a combined $5.14 million to Fairly Bike Manufacturing Co., Ltd, Shenzhen Bo-An Bike Co., Ltd and Acetrikes Bicycle Co.

According to former employees, Iron Horse stopped operations at its Holbrook, NY office in late January, although Weidberg said in a court document that the company continues to manage and operate its business.

Iron Horse is now known for their downhill style bikes on the market.  At any given time there has been well known riders riding their bikes to victory. As of the date of publication their website has not been updated since December 2008 and many important pages like, Riders, are not available.

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