Grifco Inc (GFCI)

[SkepticalOptimist]

Grifco Filed Chapter 11 in 2001

I posted this on RB, but got no response:

Apparently, Grifco Inc., owned 100% by Jerry Griffith, file for bankruptcy in 2001 in the District Court of Lousiana. Case # was 01-50528-LO-11.

From the docs I can see, revenue for the 10 months ending April 2001 was $282.8 thousand, gross profit of $264.7 thousand (94%), and Net Income of $69 thousand (24%).

In this case, Grifco filed because its main creditor (Hibernia Nat'l Bank) was about to foreclose on all of its assets. During the proceedings, Grifco claimed that for the past several months, Grifco was involved with several other oilfield service companies who were supposed to be purchased by another entity (not named). This never came to fruition and the Judge ultimately ordered a Chapter 7 liquidation.

Not sure how to interpret this information - obviously the Company was somewhat profitable, albeit a much, much smaller company than it is today. Chapter 7 and filing for BK is obviously not favorable for management history or Grifco, as it was obviously once overburdened with too much debt.

Good luck to all. I'm interested to hear your thoughts on this info.