Dippin’ Dots Inc., has filed for Chapter 11 bankruptcy protection this week in U.S. Bankruptcy Court in Paducah, KY near the company’s headquarters. Dippin’ Dots owes about $11.1 million to Regions Bank and has been fighting off foreclosure efforts from the bank for more than a year, according to the court documents.
Dippin’ Dots which describes itself as “ice cream of the future”, is a manufacturer of specialty ice cream products. The ice cream is flash frozen into tiny beads and this novelty product is sold mainly to venues such as stadiums, theme parks, concert halls, as well as franchised locations.
The company executives asked for permission from the court to spend some of the cash collateral that secures the Regions Bank loan which may allow it to continue operating during the case. Dippin’ Dots attorneys stated in court documents that the company “has no alternative borrowing source and to remain in business, the company must be permitted to use the cash proceeds described herein to pay general operating overhead and administrative expenses.”
According to the bankruptcy petition the company states its assets are worth $20.2 million and their debts have soared to $12 million. Most companies that file for bankruptcy under the Chapter 11 plan to continue operating by reorganizing their finances which is what the company plans on at this time.