LIQUIDATION ANNOUNCEMENT FOR CREDITORS
The acquisition of certain assets by BendPak Holdings LLC from BOT Financial LLC in its capacity as Assignee for the Benefit of Creditors of Garage Equipment Supply, Inc. and HIPH, Inc. specifically excluded any liabilities, debts and obligations of Garage Equipment Supply, Inc. and Henthorn Intellectual Properties Holding, Inc. All inquiries from creditors of Garage Equipment Supply, Inc. and Henthorn Intellectual Properties Holding, Inc. should be directed to BOT Financial LLC.”
To All Interested Parties of Garage Equipment Supply®, Dannmar®, and MaxJax®
On April 7, 2020, Garage Equipment Supply, Inc., a California Corporation (GES), made an Assignment for the Benefit of Creditors to BOT Financial LLC, a California LLC (BOT), all pursuant to California law. BOT accepted that Assignment on April 7, 2020. At the same time, Henthorn Intellectual Property, Inc., a California Corporation (HIPI), similarly made an Assignment for the Benefit of Creditors to BOT.
A brief description of the business and affairs of the Assignors, as prepared by the principals, is attached at the end of this Bulletin. This should be considered in light of the imposition of tariffs in 2018, significantly increased tariffs in 2019, and the current Covid-19 crisis, which appears to have sparked a possible worldwide recession.
In anticipation of the Assignment process, and prior to accepting the Assignment, BOT obtained a valuation of the assets of each entity: GES-owned inventory and other personal property; HIPI owned certain intellectual property.
With that valuation, BOT led an effort to solicit and seek from potential buyers the highest and best price for all of the assets of each company, taking into account all circumstances, including, but not limited to, ongoing operational losses and the traumatic world events brought about by the Novel Virus.
Upon review of the affairs of both GES and HIPI, it became clear to the Assignee that each entity was the alter ego of the other, and hence BOT determined that all assets would be administered together for the benefit of creditors. It was also clear that the major assets (intellectual property) resided with HIPI, but that all of the creditors were creditors of GES.
The Assignee concluded that the highest and best offer with the most immediate ability to close a transaction, and without delay or expense, was that received from Bendpak Holdings LLC (BendPak). Upon acceptance of the Assignment, BOT sold to BendPak, for the sum of $750,000, certain of the assets of the Assignor, described as follows:
- MaxJax patent
- MaxJax trademark
- Dannmar trademark
- MaxJax and Dannmar inventory associated with the Intellectual Property purchased
- Customer lists
- Current marketing materials
- Computers and hard drives
- Manufacturing connections
Assets excluded from the sale to BendPak, included, without limitation, Seller’s or Assignor’s (i) cash, (ii) accounts receivable, (iii) claims or preference or fraudulent conveyance recoveries under applicable law, (iv) state or federal tax refunds, (v) insurance refunds or recoveries, and (vi) utility or leasehold security deposits. Also, excluded from the sale was inventory.
From an initial review of the assets and the liquidation, and taking into account the costs and fees associated with the Assignment process, it does currently appear that there will be SOME DISTRIBUTION AVAILABLE TO BE PAID TO GENERAL UNSECURED CREDITORS, amount currently unknown. Such distribution will be paid after the full liquidation of the assets, and after the receipt and review of Proofs of Claim submitted in this matter.
Attached hereto is a PROOF OF CLAIM. In order to be eligible to receive any pro rata distribution, such a Proof of Claim must be sent to the Assignee as follows:
BOT Financial LLC
16000 Ventura Blvd. #1000
Encino, California 91436
Proofs of Claim must be received by the Assignee on or before OCTOBER 1, 2020.
Notwithstanding the deadline, it is suggested that you advance your file for approximately 60 days in order to allow the Assignee to go forward with the remaining liquidation activity and update all creditors as to both status as well as possible distribution.
About BendPak Inc. and BendPak Holdings LLC.: BendPak Inc. is a global manufacturer of vehicle service equipment sold under the trademarked brands BendPak®, Ranger®, Autostacker®, QuickJack®, GrandPrix® and JackPak®. Its collective range of products includes car lifts, parking lifts, pipe benders, air compressors, tire changers, wheel balancers, wheel aligners, brake lathes and other garage equipment. BendPak Holdings LLC will handle the newly acquired brands for the BendPak group. BendPak, Ranger Products and BendPak-Ranger related marks are trademarks and/or registered trademarks of BendPak Inc. in the U.S. and other countries.
ABOUT GARAGE EQUIPMENT SUPPLY (GES): GES brands include Dannmar®, MaxJax® and Garage Equipment Supply®. Dannmar products include car lifts, tire changers, wheel balancers, and a variety of garage equipment products. MaxJax is a patented car lift specially tailored for car enthusiasts and home garage use. Garage Equipment Supply is an online reseller of garage equipment and tools. Henthorn Intellectual Properties Holdings, Inc. (HIPH) is the intellectual holding company that controlled the intellectual property portfolio of the GES entities including trademarks, patents, copyrights, designs and unpatented technology. Dannmar, MaxJax and Garage Equipment Supply are registered trademarks in the U.S. and other countries.