On Thursday, J.M. Products Inc. of Little Rock was sold at auction to C2 Global Technologies Inc. of Canada for $6.8 million.
The sale of one of the largest manufacturers and distributors of ethnic hair care products, though, still has to be approved by U.S. Bankruptcy Court Judge James Mixon, who will consider it on Monday.
C2 Global wasn't sure of its intention regarding the company's two plants, Alex Moglia, J.M.'s trustee in the case, said Thursday. He was supposed to learn more on Friday.
He did declare it to be "a very successful sale," which he hopes to close no later than Nov. 13.
Michael Joshua, the president of J.M. Products, couldn't be reached for comment. His mother, Thelma Joshua, is the CEO, and she couldn't be reached for comment either.
But the sale won't be enough to cover all J.M.'s debt, which was reported at $14.6 million when the company filed for Chapter 11 in April.
He said Mixon would have to decide whether J.M. Products remains in Chapter 11 mode.
Moglia had lobbied for the sale because "J.M. has experienced declining sales and inadequate cash flow to sustain its business operations," he said in a motion for the sale.
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