The Chapter 11 bankruptcy case for Springdale-based NanoMech Inc. has been dismissed at the company’s request, according to court documents filed Thursday (May 28).
U.S. Bankruptcy Judge John Dorsey approved May 26 dismissing the case more than a year after the company initially filed for bankruptcy. Last week, Dorsey allowed NanoMech to abandon its manufacturing facility at 2447 Technology Way in Springdale.
NanoMech didn’t believe that selling the property would allow for it to repay the existing mortgages on it. The property has two mortgages on it. The first is with Arvest Bank for $1.54 million and a second with the Arkansas Economic Development Commission for $500,000, court documents show.
In April, Dorsey approved a $1.7 million settlement agreement between NanoMech, its directors and officers and New York-based lender Michaelson Capital Partners. Of that amount, $1.68 million will go to Michaelson. The remainder will be for the benefit of NanoMech’s estate.
NanoMech filed April 15, 2019, for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware after Michaelson Capital Partners sued NanoMech for not making payments on nearly $7 million in loans.
A subsidiary of Houston-based petrochemical company Vinmar International acquired the assets of NanoMech on Aug. 1 after agreeing to bid up to $13.09 million for the company. Following the acquisition, NanoMech was renamed to VinTech Nano Materials LLC.