Dippin' Dots files for bankruptcy protection
PADUCAH — The ice cream of the future has filed for Chapter 11 bankruptcy protection. Paducah-based Dippin' Dots spoke with Local 6 Friday morning regarding the move.
Steve Heisner, Director of Administration, told Local 6 that Dippin' Dots has filed for protection under Chapter 11. He said the move should not affect distribution or other operations, and the company will stay open during the bankruptcy process.
The company made the following news release Friday morning:
"Dippin’ Dots, Inc. announced it has filed an action in Federal Court seeking protection under Chapter 11 of the Federal Bankruptcy Code as the result of a failure to reach an agreement with its secured lender Regions, following several attempts to do so.
"This action represents the unfortunate conclusion of a ten-plus year productive relationship between Dippin’ Dots and Regions. Dippin’ Dots, Inc. does not anticipate that this situation will interrupt its ability to deliver supplies or service to any of its valued customers during this period. Under a plan of reorganization, Dippin Dots, Inc. will seek an equitable restructuring of debt that will allow the company to honor obligations to its vendors and other stakeholders."