Corporate Parent of Hawk Electronics Files for Bankruptcy Relief
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Corporate Parent of Hawk Electronics Files for Bankruptcy Relief

August 12, 2013


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The corporate parent of Hawk Electronics told sources this week that it plans to file for bankruptcy relief and liquidate its assets, according to a recent report from the Fort Worth Star-Telegram.

Sources say the Texas-based company had been crippled by debt after defaulting on a loan to its largest creditor. The creditor, in turn, blocked the company’s access to a significant portion of its bank accounts last week.

The parent company, Teletouch Corp., has operated under the trade name Hawk Electronics for more than 40 years. Sources say the company provides wireless and cellular services to large partners, as well as individual consumers.

Hawk reportedly did business with several major entities in Texas, including the city governments of Tyler, Lufkin, Palestine, and Fort Worth, as well as the Fort Worth Fire Department and the local branch of the U.S. Marshal’s Office.

At last count, the company had 112 employees, sources say. And while Hawk is liquidating its assets, sources are quick to note that its customers will not experience any disruption in wireless or cellular services. This was emphasized because Hawk provides services to several police and fire departments.

The company will reportedly transfer its account to AT&T, although the transfer could take several months, according to local sources.

The liquidation process will also lead to the closing of the company’s few retail stores, although some of them were already phased out of operation as the company struggled to meet its debt obligations.

Hawk Electronics is believed to be filing for Chapter 11 bankruptcy as it shutters its remaining businesses, but sources expect that it will later convert to Chapter 7 bankruptcy.

The company’s fate was sealed when it failed to negotiate a modified loan with its primary lender, DCP, which gave Hawk a $6 million line of credit earlier this year.

Hawk, however, defaulted on the loan last month, and DCP told the company that it would only provide further cash in order to help “wind down” the company’s operations, according to sources.

DCP had become the company’s primary lender after its predecessor, Thermo Credit, stopped lending money to Hawk following the company’s payment to the state of Texas of nearly $2 million in uncollected sales taxes.

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