Bank calls for Dippin' Dots chief to be ousted

• Published in: The Charleston daily mail (Charleston, W. Va. : 1920)
• Format: Newspaper Article
• Language: English
• Published: Charleston, W.V Charleston Newspapers 29.02.2012
• Subjects: Fulton, Thomas H; Jones, Curt

Regions is the largest creditor of Paducah, Ky.-based Dippin' Dots, having loaned the company $10.8 million before November's bankruptcy protection filing in federal court in Kentucky. It also loaned Dippin' Dots another $200,000 to keep the company operating after the filing. Regions filed a motion in federal bankruptcy court asking Judge Thomas H. Fulton to remove [Curt Jones] as the decision maker for Dippin' Dots. In court filings, Regions said Dippin' Dots will be out of operating cash by the end of the month and working at a deficit. Jones' stake in other companies owed money by Dippin' Dots gives him a conflict of interest that cannot be resolved, [Brian H. Meldrum] said. Regions bank accused Jones of trying to "protect his own self-interest" by selling 51 percent of Dippin' Dots Franchising, which reaches agreements with vendors, for $250,000 to keep it from being sold by the bankruptcy court. Regions called the sale to Fischer Ventures a fraudulent attempt to keep the company away from creditors.