Update: According to BBB, on July 19th, the Chapter 11 Bankruptcy was converted back into a Chapter 7 case. Webnotions CEO & Founder Shinu Gupta has not responded to requests for confirmation and more information. This conversion into Chapter 7 means that Webnotions will not be able to restructure, as had earlier been planned.
June 16th: We’d written a couple of days ago about the liquidation challenge that Webnotions, Inc, which owns online books retailing businesses A1Books.co.in (in which Times Internet Ltd/Indiatimes owns 50%) and A1Books.com faces; Chapter 7 Bankruptcy proceedings, following a petition filed on April 26th 2010 in the US Bankruptcy Court for the District of New Jersey.
Shinu Gupta, founder and CEO of Webnotions, Inc, has informed us that this has now been converted to a Chapter 11 Bankruptcy proceeding, under which Webnotions will have the opportunity to restructure the company – reorganize its debt, and the business can continue. In an emailed response, Gupta, who is currently in New Jersey, had this to say:
“We have successfully converted chapter 7 to chapter 11 which we are very proud of and most of the vendors have started working with us. We are working hard to restructure the company to bring it back to it’s feet.”
We’ll have more post a conversation with Gupta. A1Books.co.in was founded in 1995, is based in Netcong, New Jersey, with Indian operations in Noida, UP. A recent profile of A1Books, which was seeking to raise $5 million in funding, here.
– Online Books Retailer A1Books Faces Liquidation Challenge In The US
– Difference between Chapter 11 and Chapter 7 Bankruptcy
– Indiatimes Picks Up 50 Percent Stake In Online Books Marketplace A1Books; A Private Treaties Deal