Jones Company CBR Files for Chapter 11 Bankruptcy
College Book Rental Company, LLC, (CBR) has filed for Chapter 11 bankruptcy.
The case filed October 4, 2012, in the United States Bankruptcy Court for the Middle Tennessee District of Tennessee petitions relief of approximately $15,036,951.93 in debts. Fifteen million dollars of that claim are for money loaned.
CBR is co-owned by Murray businessman Chuck Jones and David Griffin, of Nashville, Tenn. The textbook rental company came under scrutiny in September when textbook publishers McGraw-Hill and Pearson Education filed a restraining order against CBR and other Jones-owned entities for copyright infringement. The order claims the companies created and sold counterfeit textbooks.
CBR Attorney Bill Norton said that this week the United States Trustee appointed Robert Waldschmidt, of Nashville, as Chapter 11 trustee. Norton said Waldschmidt will run the company until Griffin and Jones settle the bankruptcy case. The trustee must also provide updates on the status of the company to the bankruptcy judge.Waldschmidt said in an email Wednesday night that he spent his first day as trustee meeting with managers and familiarizing himself with the business. He said the CBR operation is viable.
"The bankruptcy results from issues between the owners, but the Chapter 11 actually should stabilize those distractions, and help the company to focus on growing its business," said Waldschmidt.
Jones’ attorney in Nashville had filed a motion on October 5 to dismiss the case or transfer it to Kentucky. The motion claimed the bankruptcy would be more properly handled in Kentucky courts because CBR is a Wyoming LLC and its principal place of business is Calloway County. Griffin objected to the motion, saying a majority of assets and the debtor’s and parties’ professionals are located in and around Nashville. Norton said following discussions this week between the owners, it appears unlikely the case will move out of Tennessee courts.
Norton stated a case of this nature takes around six months to reach resolution. The CBR creditors are set to meet in Nashville to discuss the debt claims November 15.
A Chapter 11 bankruptcy filing means the company may reorganize and continue to operate.