Newspaper article THE JOURNAL RECORD

Skolniks Denies Claims in Bankruptcy Petition

Newspaper article THE JOURNAL RECORD

Skolniks Denies Claims in Bankruptcy Petition

Article excerpt

Skolniks Inc. on Monday filed an answer to an involuntary bankruptcy petition denying allegations of being delinquent on payments for goods and services.

On Jan. 13, three companies filed an involuntary bankruptcy petition against Skolniks in the U.S. Bankruptcy Court for the Western District of Oklahoma.

Bay State Milling Co., of Quincy, Mass., American Truck Lines Inc., of Philadelphia and Artkraft Container Corp., of Tullytown, Pa., filed the petition asking to place Skolniks into bankruptcy under Chapter 11.

Skolniks has operated bagel bakeries in Westampton and Moorestown, N.J., Scottsdale, Ariz., and Morristown, Pa.

The three claimed Skolniks, "despite repeated demands," had failed to make payments due to them and possibly several other creditors.

In the company's answer, Skolniks denied the allegations of failure to make payments and demanded strict proof from the petitioning companies. The company also requested the court to set a trial to resolve the matter.

In the original petition, the petitioning companies listed the following claim amounts for goods sold and delivered and-or services provided: Bay State Milling _ $89,827. American Truck Lines _ $131,038. Artkraft Container _ $133,533.

Skolniks said these companies are holding claims "in the aggregate to at least $10,000 more than the value of any lien on property belonging to the debtor." However, Skolniks denied allegations of the particular claims due to lack of "specific information as to the nature and amount of the claims of the creditors."

In addition to the bankruptcy petition, the companies also filed a request for an order to be granted requiring Skolniks to receive court approval before engaging in any activities outside the ordinary course of its business.

On Jan. 24, bankruptcy judge Paul B. Lindsey signed such an order. No Skolniks representatives were present during the hearing.

The order referred to any activities "including without limitation, the use, transfer, sale, acquisition, disposition or relocation of any property outside of the ordinary course of its business."

The basis for the order was Skolniks' "overnight" move from its Oklahoma City headquarters and the possibility of property transactions occurring before the bankruptcy case is settled, according to Kwame T. …

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