Two weeks ago, the company abruptly halted service from Mayport, Fla., the Jacksonville, Fla., Times-Union reported Wednesday.
Court papers say the company has assets worth between $1 million and $10 million and debts of between $500 million and $100 million.
The company filed for Chapter 7, the bankruptcy filing that designated a liquidation, as opposed to Chapter 11, which designates a reorganization of funds.
The filing says creditors were unlikely to receive any funds, but an ad hoc group of 20 creditors said the bankruptcy filing "appears intended to benefit Fortress (Investment Group)," which is the main creditor involved with the company.
"We believe there's a very strong likelihood of financial recovery, either by working with the Chapter 7 trustees or through a gentleman's agreement with Fortress," the group's lawyer Jonathan Stein said.
Copyright 2009 by United Press International.
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