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Lionel News - Bankruptcy Extension

2896 Views 1 Reply 2 Participants Last post by  Stan kolak, 
tworail
WASHINGTON -- Model-train maker Lionel has been granted a fourth extension in its bankruptcy case that allows it time to solve a years-old dispute over trade secrets.

The bankruptcy judge said Lionel, which is based in Macomb County's Chesterfield Township in Michigan, could have the time to file its reorganization plan after an Ohio court makes a decision in the trade-secret lawsuit filed by rival Mike's Train House.

Lionel said it couldn't file a plan until the decision is handed down.

Lionel was sued after its South Korean supplier, Korea Brass, allegedly misappropriated trade secrets from Mike's.

The 2004 decision and $40.8 million judgment derailed the 105 year-old train-maker, pushing it into bankruptcy.
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Lionel bankrupcy

According to a guy in a train store. this Korean manu. was making trains for more than one supplier at a time. They won't refuse a contract, and therefore don't tell for whom they are working for today. This is a problem with sending manu. overseas. Had it been manu. here, the co. can keep propriety info. in the plant, and know where the next competor is located.
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