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AHP Inc., or Always Helping People Inc., filed Aug. 5 for protection from its creditors under Chapter 7 (liquidation) of the U.S. Bankruptcy Code.
The case will be heard by U.S. Bankruptcy Court Judge Karen M. See, and a first meeting of creditors is scheduled 11:30 a.m. Sept. 18, said Thomas O'Neal, the trustee assigned to the case.
O'Neal said that was filed initially in the case was a mailing matrix, and that no schedules or listing of creditors had yet been filed. Dan Nelson, attorney for AHP in the bankruptcy case, said there are a total of 200 creditors.
AHP sells water- and air-filtration systems through distributors, Nelson said. The company sells distributorships to individuals who buy a kit and the right to distribute the product to consumers, Nelson said.
On Aug. 16, 1996, the attorney general's office filed an order approving the Assurance of Voluntary Compliance, which Provided for AHP to begin resolving complaints with former distributors, said Scott Holste, spokesman for the attorney general's office.
The attorney general had received contacts from 156 people and those were to be processed for complaint satisfaction.
"Once they began resolving the complaints, they were doing OK for about the first six months until the spring of 1997, then the number of resolutions dropped off," Holste said.
During 1997, the attorney general's office filed four motions to enforce the earlier agreement, and ultimately, on July 24, 1998, filed a Motion to...