In their application, the auction house have estimated that they have assets of between $500,000 and $1m and debts of between $1m and $10m. The application also lists their 20 largest unsecured creditors, who are collectively owed about $2.1m.
With hopes of being able to trade themselves out of debt, the company have filed emergency motions with the US Bankruptcy Court, asking for permission to hire a financial adviser and an attorney, to maintain company credit cards and to use escrow accounts for future auctions. The requests for all of these were granted on December 9.
Sloan's bankruptcy plan must win the approval of creditors and the bankruptcy court. A hearing has been set for January 6.
Sloan’s file for Chapter 11 status
SLOAN’S auctioneers of Washington DC have filed for Chapter 11 bankruptcy protection in a bid to keep the company afloat. The move follows recent reports that the company had debts of up to $5m and a string of unpaid consignors.
