Sheldon Good Bankruptcy Blamed on Exec

April 27, 2009
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Sheldon Bankruptcy

Barely three months after Sheldon Good & Co chairman Steven Good committed suicide the company is dying as well and has filed bankruptcy protection under Chapter 11 for nine of its operating entities. The company seemed to still being hounded by the former CEO since company officials blamed the company’s near demise to Good’s improper actions.

Steven Good committed suicide in January this year and only after that did the debtors discovered that substantial amounts have been withdrawn by Good from their operating accounts leaving them without reserves during one of the worst economic recessions. In the bankruptcy filing Company President Alan Kravets said Good’s misappropriation has decreased the operating capital of the company and has magnified the effects of the current economic downturn.

The Chapter 11 option protects the company from its creditors while it comes up with a dent repayment plan. Company bankruptcy lawyer Heidi Sorvino said a total of $2 million have been secured by the firm for debtor-in-possession financing. The company has listed $250,000 worth of total assets, $4 million worth of liabilities and $215,664 negative net cash flow for the next 30 days.