WILMINGTON, Del. (BRAIN) — The court-appointed trustee for Divine Cycling Group’s bankruptcy case is asking the court to consolidate three related but separate Chapter 7 bankruptcy filings.
On Dec. 2, DCG Wheels, the former maker of Mad Fiber Wheels, filed for bankruptcy in U.S. Bankruptcy Court for the District of Delaware. On Dec. 13, Divine Cycling Group Inc., and Divine Cycling Group International (DCGI) separately filed for bankruptcy.
According to trustee Charles M. Forman, DCGI owns 100 percent of Divine Cycling Group, which in turn owns 100 percent of DCG Wheels.
Mad Fiber’s Seattle wheel factory was shut down this fall. In the DCG Wheels filing, the company listed assets of $1.21 million and liabilities of $1.65 million.
In the later filings, Divine Cycling Group Inc. listed assets for $78 and liabilities of $178,000. DCGI listed no assets and liabilities of $114,000. However, in later court filings Forman said he had identified unspecified assets.
Among the liabilities listed for DCGI was a lawsuit filed against the company by William Watkins, the former CEO of Serotta, a DCGI property. Watkins was fired along with company founder Ben Serotta last summer. The suit is listed as a liability of unknown amount.
DCGI principal Bryan Case told BRAIN last summer that the company owned the Serotta brand but was more or less shelving it for a time. The brand is not listed as an asset in the filings. Case has been operating the former Serotta factory as Saratoga Frameworks, independently of DCGI.
A meeting of DCG Wheels creditors was scheduled for Monday. Creditor meetings for the other two entities are scheduled for Jan. 17.
