Starfire Systems Inc. Files for Chapter 11 in New York
Posted on Aug 13, 2009 12:18pm PDT
Today, it has been reported that Starfire Systems Inc. has filed for Chapter 11 bankruptcy. Starfire is a manufacturing company that is based in Malta, New York that services the aerospace and automotive industries.
Reports indicate that the company filed for bankruptcy protection at the U.S. Bankruptcy Court in Albany. At this time, the company plans to continue operations while it reorganizes its finances. It reported $2.7 million in assets and $3.6 million in debts in bankruptcy paperwork filed this morning.
One of the company's largest creditors happens to be its landlord, United Step I, which is located in Troy. In the past, United Step has sued Starfire in state Supreme Court in Rensselaer County because the company allegedly owed $335,000 in rent.
"We've had to wrestle with an intractable landlord. It's unfortunate it came to that," said Herb Armstrong, Starfire's co-CEO. Armstrong also reported that the company only makes $4.3 in revenue each year and is not profitable.
21 years ago, Armstrong founded the company, which develops polymers used in the automotive and aerospace industries. As finances began to dwindle, the company decided to lay off 19 employees in November 2008 - almost half of its entire workforce. Shortly after, former CEO Richard Saburro resigned and two other executives were let go.
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