Client's Reorganization Plan Approved
Center Valley, Pennsylvania – July 27, 2010 – The United States Bankruptcy Court for the Eastern District of Pennsylvania approved the Chapter 11 bankruptcy Plan of Pelican Leisure Sports PA, Inc. on June 10, 2010, allowing the company to emerge from bankruptcy 18 months after the company filed for bankruptcy.
As a result of the confirmation of the Plan, Pelican, a Quakertown, Pennsylvania retailer, will remain in the business it has successfully operated for the past fifteen years and its customers will continue to find available the service and products which Pelican offers.. Pelican sells pools, pool supplies, sporting equipment, grills and outdoor furniture. More importantly, an area employer will stay in business and its employees will maintain their jobs.
Pelican's financial issues arose from a proposed business expansion which failed, saddling Pelican with obligations it incurred as guarantor of the financing. The situation was exacerbated by the tumultuous economy in 2008, as well as by uncooperative weather and nearby highway construction, all of which converged to create a financial crisis for the area retailer.
Chapter 11 bankruptcy provided an opportunity for negotiation with creditors and the financial restructuring needed to allow the company to survive and emerge with an improved balance sheet and bright prospects for the future.
Jim Dale, Pelican's owner and president, expressed gratitude and relief. "Fitzpatrick Lentz & Bubba came through for my business and helped guide us through a very rough financial period. As a result, our company will stay in business, my employees will keep their jobs, and our store will continue to serve our customers in the region."
The reorganization effort was led by Doug Smillie and the bankruptcy group at Fitzpatrick Lentz & Bubba.
Fitzpatrick Lentz & Bubba, P.C., established in 1988, is a full-service law firm providing quality legal services in real estate, land use, business, commercial litigation, estate planning & taxation, health care, employment, bankruptcy, family law and related areas. The law firm has been named "Who's Who in Business Lehigh Valley" in 2008, 2009 and 2010 and "Best of the Valley" in 2010.
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