NORTH SPRINGFIELD, VT - G3K Displays, a retail display manufacturer based in Hoboken, NJ, will auction CNC woodworking and metal fabrication machinery at its North Springfield, VT operation - which closed in May 2014. G3K Displays is being sued by its investors for alleged fraud
Items to be sold include Biesse and Homag CNC routers, Mitsubishi laser cutter, Altendorf sliding table saw, and Timesaver wet belt sander.
G3K Displays provides visual marketing solutions for a wide range of companies including Adidas, Calvin Klein, Oakley and Foot Locker. G3K Displays resulted from the merger of G3K and Kiosko - the North Springfield operation - also a manufacturer of retail displays.
In April, MVC Capital, Inc. (NYSE:MVC), a publicly traded private debt and equity investment firm, announced the completion of a second lien term loan of $10 million to G3K Displays, Inc. MVC committed to providing the loan in two installments: $6 million upfront, followed by $4 million in delayed draws subject to G3K reaching certain milestones.
In May 2014, the Rutland, VT Herald newspaper reported that 36 workers lost their jobs without warning when G3K's former Kiosko plant in North Springfield, VT, closed without warning.
MVC Capital said in an SEC filing in June that it has "initiated legal action in the Superior Court of New Jersey, Chancery Division, against G3K, its three shareholders and certain corporate officers for fraudulently misrepresenting G3K’s financial records in order to secure financing from the company."
MVC said it is "working diligently to uncover the full extent of what it believes to be a highly sophisticated fraud and is seeking to recover loan proceeds." MVC did recover $375,000 in principal prior to April 30, 201, and that the loan balance of approximately $5.6 million had a fair value of $0.
The auction takes place July 23-30, 2014, G3K Displays will be offering through Hilco surplus machinery and equipment no longer needed in its continuing operations.
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