Awww… poor millionaires and billionaires. Their cashcow Earthshell is finally over.
Earthshell filed for bankruptcy today, according to the Houston Chronicle:
EarthShell Corp., which makes fast-food packaging from biodegradable materials like limestone and food starch, has filed for Chapter 11 protection from creditors.
The Lutherville, Md.-based company listed assets of $16,176 and debt of $11.9 million in its bankruptcy petition, filed Friday in the U.S. Bankruptcy Court in Wilmington, Del.
EarthShell didn’t say in its bare-bones filing why it was seeking bankruptcy protection.
However, EarthShell said in a regulatory filing earlier this month that it had defaulted on a $5 million financing pact from Cornell Capital Partners LP.
Among the company’s largest unsecured creditors is a firm controlled by founder Essam Khashoggi, who is owed $1.9 million. Khashoggi _ brother of Saudi Arabian arms dealer Adnan Khashoggi _ owns about 32 percent of the company, according to the firm’s most recent annual report.
EarthShell also owes bondholder SF Capital Partners $2.4 million.
EarthShell, which has lost money for years, posted a $6.2 million net loss in 2005, the last full year for which results are available, compared with a $7.3 million loss in 2004.
The company funded its operations with a combination of loans and debt. EarthShell shares, which trade over the counter, closed Friday at 21 cents each.
Founded in 1992, EarthShell’s clients include McDonald’s Corp., the U.S. Environmental Protection Agency and food service providers Aramark Corp. and Sodexho Inc.
Now that Earthshell is bankrupt, and is probably going to disappear soon, how will we track the sordid goings on of Essam Khasshoggi and Simon Hodson? I’m not sure, but knowing those two wacky rich-guys, they’ll be showing up soon with some new scam to perpetrate upon the public.