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Two subsidiaries of Green Planet Group Inc.’s (OTCBB: GNPG.OB) Lumea Staffing division filed for bankruptcy protection on Aug. 17, Green Planet reported yesterday. Lumea Staffing Inc. and Lumea Staffing of CA Inc. filed for protection and reorganization under Chapter 11 of the U.S. Bankruptcy Code in Arizona. Other portions of Green Planet are not affected by the filings.
The filings will enable the company to restructure the majority of its staffing business liabilities, which include $923,000 of secured claims and up to $25 million of unsecured claims.
The two entities accounted for approximately 45 percent of gross revenue for the quarter ended June 30 and “a disproportionate amount of the loss for that quarter due to the large interest and penalties attributable to these two entities for unpaid payroll taxes,” according to a separate filing made Thursday with the U.S. Securities and Exchange Commission. Green Planet reported Monday its staffing revenue in that quarter was $8.8 million.
"Throughout the reorganization process, we will be conducting ‘business as usual’ and have taken every step possible to ensure that the Chapter 11 filings will not adversely affect our day-to-day temp staffing operations, nor the company as a whole,” said Edmond Lonergan, Green Planet’s CEO.
Green Planet also reported that one of its directors, Ed Miller, is stepping down from the board due to poor health, according to the SEC filing.