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This is a voluntary bankruptcy filing by the company using Chapter 1 of Title 11. That will see the company taken control by a trustee from the US Trustee’s Office of the Bankruptcy Court.
Investors will note that this means Addvantage Technologies’ Board of Directors will lose control over the company. The same holds true for its Fulton Technologies, Nave Communications and ADDvantage Triton LLC subsidiaries. This has resulted in all Board members resigning.
What This Means for AEY Stock
The trustee overseeing Addvantage Technologies will be responsible for the liquidation of the company’s assets. That will see them use the funds from those sales to pay claims under bankruptcy code.
With this liquidation plan, it doesn’t look like AEY stock will exist for much longer. The filing is likely to trigger the delisting of the shares from the Nasdaq Exchange.
With this bankruptcy filing comes some 56,000 shares of AEY stock changing hands. That’s already above its daily average trading volume of about 50,000 shares.
AEY stock is down 4.9% as of Friday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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