Sci-Quest granted motion to convert bankruptcy filing to Chapter 7
HUNTSVILLE, Ala. – Sci-Quest, Huntsville’s Hands-On Science Center, has been granted a motion to adjust its bankruptcy filing. The non-profit had filed for Chapter 11 bankruptcy protection, but a judge has agreed for it to be converted to Chapter 7.
Sci-Quest has been closed since early February. The conversion to Chapter 7 took place February 26.
A Chapter 11 filing is geared toward rehabilitating a company wanting to reorganize its debt and try to re-emerge as a healthy organization. Chapter 7 bankruptcy is sometimes called liquidation bankruptcy, and is more geared for companies who need to sell off assets to pay creditors.
The center had filed for Chapter 11 protection more than a year ago in hopes of reorganizing and getting out from nearly $1 million in debt. Sci-Quest board chairman Andy Crocker said the center closed due to a lack of outside funding.
About a dozen employees who worked full-time at Sci-Quest were let go. Sci-Quest also employed part-time employees during other times of the year. Schools across the area visited Sci-Quest on field trips and the center offered a variety of hands-on activities for local families centered on STEM topics (science, technology, engineering and math.)
Crocker said he is trying to find a mutually beneficial agreement with the U.S. Space & Rocket Center that will allow the mission of Sci-Quest to continue.