Systematic Audio, which does business as Sundown Audio, filed a voluntary petition for Chapter 11 reorganization under the US bankruptcy code on June 9, case 26-50236.
Sundown’s Chapter 11 filing stated that funds will be available for distribution to unsecured creditors. According to the petition, which lists preset ranges for assets and liabilities, Sundown checked the box for assets in the $10-$50 million category and liabilities in the $10-$50 million category. You can see a summary of the petition at Bondora here.
The action follows a recent ruling against Sundown in a contract dispute. The ruling said Sundown was in breach of its contract with WoofersEtc and liable for over $16 million in punitive damages plus millions of dollars in other damages.
Systematic Audio CEO Scottie Johnson told CEoutlook in an email:
“Sundown Audio intends to remain fully operational and is committed to delivering the exceptional products and services our customers have come to expect from us. To our valued dealer network: our commitment to you remains unwavering. We continue to offer industry-leading programs and look forward to sustaining the growth we have experienced over the past three consecutive years. We will continue to fight vigorously in addressing these matters through all appropriate legal channels and will not rest until justice is fully served.”
The Chapter 11 petition was filed in the US Bankruptcy Court for the Western District of North Carolina.
Sundown’s attorney was not available for comment.
