By Velida AlemicThree restaurants that bought its energy-management services from LGI Energy Solutions have filed a petition to force LGI Energy into a Chapter 7 bankruptcy. LGI Energy Solutions was established in 1996 and is based in Minnetonka, Minnesota. It provided remote energy-management services to restaurants by placing a control unit in the restaurant that sends energy information to LGI. Their customers would deposit money in escrow accounts and LGI Energy would pay their energy bills.
The three restaurants that filed the petition are Buffalo Wild Wings Inc. based in St.Louis Park , Wendy’s International Inc. based in Dublin, Ohio and Boddie Noell Enterprises which franchises Hardee’s restaurants. These three companies say that collectively, they are owed 6.4 million.
It was reported that M&I Bank which provided LGI’s line of credit had frozen the line of credit in December due to accounting irregularities. M&I Bank also seized some of LGI’s assets. LGI Energy is unable to account for between $20-$25 million in money that was collected from clients. LGI Energy now only has about 9 employees left compared to 60 they had last year. Many of the employees that left the company say that they are owed money by LGI.
After finding out all of the information about LGI Energy, these three restaurants had a right to file the petition. If LGI cannot account for $20 million and are not paying their own employees properly, there is clearly something wrong with this picture.
Sources:
http://www.bizjournals.com/twincities/stories/2009/02/09/daily13.html
http://www.startribune.com/business/39345412.html?elr=KArksLckD8EQDUoaEyqyP4O:DW3ckUiD3aPc:_Yyc:aUUI
http://www.manta.com/coms2/dnbcompany_h26c7z
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