Joy Manufacturing filed for Chapter 11 bankruptcy protection Tuesday after the collapse of its factor, E.S. Bankest, left it unable to pay its bills, said Larry S. Schantz, the company's attorney in report in the Miami Herald.
“Bankest was the major lender and major infuser of money into this company for years,” Schantz said. “Obviously, with our primary lender being in receivership, it put us in a terrible situation.” Joy Manufacturing has roughly $35 million in annual sales and “a few hundred” employees, he said.
Schantz said in the report that he wasn't sure what Joy Manufacturing owes E.S. Bankest, but said the company owes other creditors roughly $6 million. He said the goal is to find replacement lenders, but he acknowledged Joy's workers have already taken a hit.
“We're behind in some payroll,” he said.
Lawyers have confirmed with the Herald that the U.S. attorney's office has opened a criminal investigation and two of the principals in E.S. Bankest, brothers Hector and Eduardo Orlansky, have hired criminal attorney Ed Shohat to represent them.
