MoreDenver, Colo. -- Venturi Technologies, Inc. has filed a petition for reorganization under Chapter 11 of the Federal Bankruptcy Code. Venturi had tried and was unable to raise additional equity capital over the past several months and decided that it couldn’t continue its operations without the protection of the bankruptcy laws.
According to President and CEO of Venturi, Michael Dougherty, Venturi received a commitment for $2,000,000 in debtor in possession financing from principal company shareholders and creditors subject to the approval of the Bankruptcy Court. If it’s approved, the loan would enable Venturi to continue normal operations at the same time that it prepares a strategy of reorganization. Venturi also announced that it had reached a tentative agreement to restructure the lease terms for most of Venturi’s operating equipment. The agreement depends on the satisfaction of various conditions in addition to the Court’s approval.
The reorganization process should help the company’s efforts to raise additional equity capital, Venturi stated. The reorganization plan is expected to significantly reduce, if not eradicate, the existing equity interests in the company. Venturi Technologies Inc. offers carpet, upholstery, floor and duct cleaning services utilizing the company’s patented VenturiClean System.
