John Northen , the lawyer representing University Directories, said the collegiate marketing company was looking to sell the business to a potential purchaser.
The potential buyer of University Directories was ELI Global LLC, a Durham-based company owned by Greg Lindberg, according to a press release from the company.
In a surprise move, UDX LLC, another Lindberg-owned entity, bought University Directories’ loans from Bank of North Carolina after the bank acquired Harrington Bank, where the loans were originally based.
After obtaining the loans, UDX quickly declared those loans in default, in a move to take forcible control of University Directories.
“It was an unexpected development,” Northen said.
University Directories then filed for Chapter 11 protection, a form of bankruptcy that allows for reorganization in order to keep a business alive and guard itself from possible takeover.
Thus, the company will be allowed to continue normal operations and work on selling the business, as it is protected by the court.
“Under the court’s protection, University Directories will continue to sell assets,” Northen said.
