|Gospel Light files for Chapter 11 reorganization
|Written by Taylor Berglund
|Monday, 10 August 2015 05:14 PM America/New_York
Gospel Light filed a voluntary petition for relief Friday, Aug. 7 under Chapter 11 of the U.S. Bankruptcy Code. The company will continue to operate its business as a "debtor-in-possession" under the jurisdiction of the U.S. Bankruptcy Court for the Central District of California, Northern Division.
Gospel Light has filed a 120-day cash collateral plan to satisfy the obligations associated with the daily operations of its business, including the timely payment of employee wages and delivery of products for the church to both trade and direct customers.
In connection with its Chapter 11 filing, Gospel Light intends to conduct an auction of its Sunday school, Vacation Bible School and ministry resource businesses. In addition, the company is seeking court approval for the sale of its shares in ZDL to its minority partner, Pacific Resources International. Gospel Light is one of the founding partners of ZDL, a Christian publishing enterprise in China.
“We covet your prayers for Gospel Light as we seek to find through the auction process a ministry partner that can carry on the tremendous legacy that Henrietta Mears began over 80 years ago,” said Dave Thornton, CEO of Gospel Light.