Smart Parts Closes (temporarily)

[BigEvil]

From PBN
http://www.pbnation.com/showthread.php?t=3291634Smart



Smart Parts Temporary Closure

Smart Parts Inc., undergoes temporary closure for restructuring during the month of January 2009.

Loyalhanna, PA – January 6, 2009 – Paintball manufacturer Smart Parts, Inc. is temporarily shutting down all manufacturing and sale operations in order to facilitate a corporate restructuring. During this time, the company will not be able accept or process orders, ship or receive products or perform repairs. The restructuring process is expected to be completed by the end of January 2010.

“It is important that people do not send equipment in for service during this time,” said company Vice President, Adam Gardner. “Our buildings will not be staffed during the restructuring, so there will be no one there to receive packages. They will automatically be refused and returned to the sender.

“To the players, field owners and store owners, please know that we appreciate your support and are looking forward to a fresh start for the 2010 paintball season. We apologize for any inconvenience this short closure may cause, and hope to make it up to you in the future.”

Smart Parts, Inc., is a leading developer and manufacturer of equipment and accessories for the sport of paintball.

EDIT by Mega-Mod: The text (and date) from the above Press Release is from SmartParts. We believe they actually meant the year to be 2010.

[xero28]

http://swarthmoreasianorganization.files.wordpress.com/2009/08/end.jpg

:clap:

[vf-xx]

I think the question here is: chapter 11 or chapter 13? (not that I remember the difference)

[punkncat]

Waiting for it......

[Ruler_Mark]

They even fail on announcements.... "Loyalhanna, PA – January 6, 2009" wouldn't that mean its been closed for a year....

[leloup]

Chapter 11 is when they continue to function while they follow debt repayment plans. So basically it gives them more time to pay off debts.

Chapter 13 is the same as 11, except it is for smaller amounts of debt, under about $336k in unsecured debts (no collateral) and secured debts under a million. 11 is over those amounts.

Chapter 7 is liquidation of assests...which would be awesome if they had to liquidate some patents, if you know what I mean, wink wink, nod nod, etc. etc.

So let us hope it is 7.

[punkncat]

ding ding!!!

Two posts.

[teufelhunden]

Chapter 7 is liquidation of assests...which would be awesome if they had to liquidate some patents, if you know what I mean, wink wink, nod nod, etc. etc.

So let us hope it is 7.

Clearly they wouldn't be liquidated to the Gardeners ;)

[mostpeople]

You know, pretty much anywhere I turn on the forums I see people recognizing what smart parts has done - and not tolerating it. Thank god! The real question is to see where the patents go, and what happens with G.I. Milsim. Although I think that after the last ballistics testing was done by multiple people on the .50 cal I don't see G.I. milsim having any bit of success - but who knows.

The real thing that NEEDS to be done is to keep the exposure out there, and not let smart parts' bad ways transfer over to G.I. milsim unnoticed. When and if they do, we need to be organized and make sure the word is out there on what they did.

I am actually very impressed with the paintball community over this, not allowing BS to happen to their sport. Its obviously worked, and SP is done because of it.

:dance:

[Ninjeff]

You know, pretty much anywhere I turn on the forums I see people recognizing what smart parts has done - and not tolerating it. Thank god! The real question is to see where the patents go, and what happens with G.I. Milsim. Although I think that after the last ballistics testing was done by multiple people on the .50 cal I don't see G.I. milsim having any bit of success - but who knows.

The real thing that NEEDS to be done is to keep the exposure out there, and not let smart parts' bad ways transfer over to G.I. milsim unnoticed. When and if they do, we need to be organized and make sure the word is out there on what they did.

I am actually very impressed with the paintball community over this, not allowing BS to happen to their sport. Its obviously worked, and SP is done because of it.

:dance:


Agreed. 100% agreed.

[afortuna]

Chapter 11 is when they continue to function while they follow debt repayment plans. So basically it gives them more time to pay off debts.

Chapter 13 is the same as 11, except it is for smaller amounts of debt, under about $336k in unsecured debts (no collateral) and secured debts under a million. 11 is over those amounts.

Chapter 7 is liquidation of assests...which would be awesome if they had to liquidate some patents, if you know what I mean, wink wink, nod nod, etc. etc.

So let us hope it is 7.

Not quite correct, but pretty close.

Chapter 7 is for either individuals or corporations. It is the death nail in the coffin for a corporation. If they are in or forced into a Chapter 7, then all assets will be liquidated by the Court and dispursed.

Chapter 13 is for individuals only. Corporations are not allowed to file Chapter 13's. This is the first level repayment plan for individuals.

Chapter 11 is the base repayment plan for corporations and some individuals with very large debt amounts are forced into this Chapter instead of a 7 or 13. Chapter 11 is considered the restructuring plan for corporations. If the Plan doesn't work, they convert to Chapter 7 pretty quickly.

Most times, if a corporation has to file a Chapter 7, the creditors don't usually get very much if any from it. The Court fees, attorney fees, and Trustee fees eat everything up. If you are a creditor, then you want the Chapter 11 for your debtor.

No matter how you slice it, not a good thing to have to file.

[Drix]

http://1.bp.blogspot.com/__AhXr_BwVgQ/SOL3hBNsu1I/AAAAAAAAATU/R_Ro_0xLmsQ/s400/victory.jpg

Now down with GI Milsim and Luxe!

[Maghog]

Let's hope they stay dead forever and that the Gardeners really feel the sting.
They have cheated notoriously when they played the sport,then they screwed us all with their patents.
I hope this one hurts bad and that they never come back.
Dan@Triggernomics

[the123]

Let's hope they stay dead forever and that the Gardeners really feel the sting.
They have cheated notoriously when they played the sport,then they screwed us all with their patents.
I hope this one hurts bad and that they never come back.
Dan@Triggernomics

I always had a chuckle at the "Tourney Lock" they had on the Max Flow regulators. I remember other chatter about velocity cheats by them too.

[javasnot17]

Hahahaha, awesome news! Looks like its back to the ol' drawing board (splash kits, lol!).

[spantol]

If I'm reading this correctly, it seems that the SP patents were re-assigned to PNC Bank in February 2008:

http://assignments.uspto.gov/assignments/q?db=pat&reel=021006&frame=0524

Presumably, they were used as collateral for a loan. If they've defaulted, well, that sure would be shame.

[Beemer]

Nice find.


___________

http://home.comcast.net/~beemerone/AoIL.gif

[Drix]

If they've closed their doors for the month that alludes to Chapter 7 bankrupcy (http://en.wikipedia.org/wiki/Chapter_7,_Title_11,_United_States_Code) which would mean they're selling off assets to pay debtors... I wonder if that means they will be forced to sell off their patents to the highest bidder....

[50 cal]

Someone cue up the Nelson "HaHa" pic

[mostpeople]

All patents transferred to PNC National Bank

http://assignments.uspto.gov/assignments/q?db=pat&reel=021006&frame=0524

edit* oops already posted haha

[maniacmechanic]

If I'm reading this correctly, it seems that the SP patents were re-assigned to PNC Bank in February 2008:

http://assignments.uspto.gov/assignments/q?db=pat&reel=021006&frame=0524

Presumably, they were used as collateral for a loan. If they've defaulted, well, that sure would be shame.

So should we all start writing the bank & tell them the patents are worthless , or that they are worth multi millions

if the bank held them for collateral , if sp paid off the loan wouldn't they have to reassign the patents to sp

[going_home]

You guys may be getting your panties bunched up for nothing.
Apparently buying patents is what this bank does.
The PNC Bank owns 7 pages of patents.

http://assignments.uspto.gov/assignments/q?db=pat&asned=PNC%20BANK,%20NATIONAL%20ASSOCIATION

Page 4 Assignment: 197 , Recorded: 03/11/2005 , NATIONAL PAINTBALL SUPPLY, INC.

Page 4 Assignment: 198 , Recorded: 06/15/2007 , NATIONAL PAINTBALL SUPPLY, INC.

Page 6 Assignment: 270 & 271 , Recorded: 05/27/2008 , SMART PARTS, INC.


Some other interesting names in there too.
Activision is in there a couple times,
Crocs Inc (those hideous slippers),
and Ritz Camera to name a few.

:rolleyes:

[AGD]

I think its more likely all those companies defaulted on loans. Banks are not stupid as you can see. When they loan you money you sign away every asset you own. Believe me I know...

I am dieing to know if SP will make a comeback under new (or old) owners.

AGD

[Tao]

If I'm reading this correctly, it seems that the SP patents were re-assigned to PNC Bank in February 2008:

http://assignments.uspto.gov/assignments/q?db=pat&reel=021006&frame=0524

Presumably, they were used as collateral for a loan. If they've defaulted, well, that sure would be shame.

Lol they lost their self squeegeeing barrel patent too :rofl:

[Skeeter]

So should we all start writing the bank & tell them the patents are worthless , or that they are worth multi millions

IIRC, several should expire within 3-4 years. I wonder how someone would contact the bank about purchasing a specific patent? How would you "value" them? Tom? Lets hold an AGD fund-raiser & get the IP moved over to Tom's hands!!!! Poetic justice!


if the bank held them for collateral , if sp paid off the loan wouldn't they have to reassign the patents to sp

Lets hope that they are so far in the hole, that they will never see these patents again. It sounds like they are gonners, with no hope of return. It would be hard to court the venture capitalist crowd, with their track record. I don't understand Richmond's logic. Why pump huge $$ into a failed venture with a horible starting reputation, for a dubious product, in an obvious effort to wiggle around a "non-compete" agreement? If you have that much $$, there are much easier ways to multiply it. Since the Gardner's have tried to screw the industry for so many years, why would anyone get in bed with them???

I see .50 cal treading water for a few years. Not in the sport of PB, but as a law enforcement training tool. This sport is too established to change formats. The tournament industry is withering on the vine (sorry, Camile). Rec Ball & Scenario Ball will stay .68, and keep the sport alive! After a few years of minimal profits (at best), .50 cal will just fade away. THEN we can all get together and TP the Gardner brothers houses!!!!! :clap:

[Reiner]

Well if the bank took them as collateral, let's hope they did that in jest and weren't actually thinking they were worth anything and could make money off them. That could be bad if the directors of a bank were in charge of setting up and collecting royalties.

[BigEvil]

Here's an interesting tid-bit. I ran into a friend of mine at a big game this weekend. This guy is sponsored by SP. He was shooting an ego. When I asked him about it, he laughed and said they are done.

[SSP REAPER]

I told you all last month and fishmishin confirmed it as well. It appears people still think they will make a return. I for one hope they flop and never come back!

We need a market that is not saturated (more than it presently is) with cheap piece of crap markers made in China and Taiwan that don't even work half the time...

[robo1]

Its about time. Is that the patent for the freak barrel too?

[leloup]

Not quite correct, but pretty close.

Chapter 13 is for individuals only. Corporations are not allowed to file Chapter 13's. This is the first level repayment plan for individuals.


True, I was giving just a simplified version. Also, partnerships cannot file 13. Is smartparts a partnership (between the two bros right)?

EDIT: I think that the patents in the hands of a bank might be even worse, as their interest would be money, and not the sport as a whole. I wonder if they know just how important those patents could be?

[spantol]

Its about time. Is that the patent for the freak barrel too?

Yup, the patents for the Freak barrel system (6,823,857) and the All-American barrel (5,228,427) are included in the list.


True, I was giving just a simplified version. Also, partnerships cannot file 13. Is smartparts a partnership (between the two bros right)?

Nope, it's Smart Parts, Inc.

[leloup]

Yup, the patents for the Freak barrel system (6,823,857) and the All-American barrel (5,228,427) are included in the list.



Nope, it's Smart Parts, Inc.

I tried doing some research, and all that I can find is that it is a partnership between the two brothers. I don't think they are a corporation, as they have never been publicly traded (not that all corps do, but most in the manuf. business).

[KC]

:)

[spantol]

I tried doing some research, and all that I can find is that it is a partnership between the two brothers. I don't think they are a corporation, as they have never been publicly traded (not that all corps do, but most in the manuf. business).

It's a corporation:

https://www.corporations.state.pa.us/corp/soskb/Corp.asp?828737

[Tao]

True, I was giving just a simplified version. Also, partnerships cannot file 13. Is smartparts a partnership (between the two bros right)?

EDIT: I think that the patents in the hands of a bank might be even worse, as their interest would be money, and not the sport as a whole. I wonder if they know just how important those patents could be?

The name of the company is Smart Parts Inc so it is a corporation. (Corporation names MUST have "inc.", "ltd", "incorporated", or "limited" in their name)

[leloup]

I wonder why they don't publicly trade their stock? We could have helped destroy them along time ago if they did.

They are not listed on the BBB...interesting

[spantol]

I wonder why they don't publicly trade their stock? We could have helped destroy them along time ago if they did.

That's surely part of it. Private corporations stay private so that the principals remain in complete control of the company. Are there any publicly traded paintball companies?

[PaintballEngineer]

I think its more likely all those companies defaulted on loans. Banks are not stupid as you can see. When they loan you money you sign away every asset you own. Believe me I know...

I am dieing to know if SP will make a comeback under new (or old) owners.

AGD
IF they DO show back up I hope they have new owners who have NO associations with the bros. I might even start to like them then ...

Somebody buy those patents!!! They need to be in the right hands.

[Tao]

I wonder why they don't publicly trade their stock? We could have helped destroy them along time ago if they did.

They are not listed on the BBB...interesting

No one tends to invest in companies when the creators own a majority share. Usually you have to give up 51% to be successful on the open market.

Usually new and small companies will go public as a source of funding. If you are set up already and making money why share the wealth? ;)

TK could probably add his own story in the matter why he didnt go public...

[Tao]

IF they DO show back up I hope they have new owners who have NO associations with the bros. I might even start to like them then ...

Somebody buy those patents!!! They need to be in the right hands.

Theoretically those patents are worth the 12million(?) that SP owed or more.

[Skeeter]

No one tends to invest in companies when the creators own a majority share. Usually you have to give up 51% to be successful on the open market.

Exactly. They won't give up ANY control. Their business philosophy has always been about HOLDING onto control. .50 is about control. How many patents does GI-Milsim hold for .50 cal??? Adaptors, marker designs, barrels, etc.? They want to change the industry to .50 cal, because THEY have control over that format. No other reason. It's not about the players, or field owners, it's about control.