READFIELD -- Saunders Manufacturing Co. Inc. has come out of bankruptcy protection and says it continues to operate as usual and pay its employees and creditors.

The firm filed for bankruptcy protection in June.

At the time, company President John Rosmarin said the bankruptcy filing was necessary because of two related design patent infringement lawsuits in Texas.

He predicted in June the company would exit bankruptcy within a couple of months.

A statement from the company issued Wednesday said, "Saunders used provisions of the U.S. Bankruptcy Code to settle prolonged and costly patent litigation commenced against it in Texas over two and a half years ago."

A motion to dismiss the bankruptcy proceeding was signed last week by Chief Judge Louis Kornreich in U.S. Bankruptcy Court for the District of Maine.

The company continued to operate while it was protected under Chapter 11 of the U.S. Bankruptcy Code.

"The bankruptcy proceeding is finished," Rosmarin said. "I wish to express my gratitude to our creditors and customers who have shown faith and patience, and belief that we would prevail."

The statement indicated all unsecured creditors would be paid in full.

Saunders employs about 70 people and manufactures items including aluminum and plastic clipboards, portable desktops, form holders, glues, RhinoSkin cases for iPods and MacBooks, and Ticket Boards.

Filings in the case in bankruptcy court indicated Saunders' assets and liabilities were each between $1 million and $10 million.

The patent lawsuits, both filed in 2007 by Dexas International Ltd., in U.S. District Court for the Northern District of Texas, charged Saunders with three counts of design patent infringement involving its Clipcase, Slim Case and Document case products.

Court records show a settlement agreement in that case was signed Sept. 30.

 

Betty Adams -- 621-5631

badams@centralmaine.com