Atlas Communications files Chapter 11 bankruptcy

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by Eric Olson|ret||ret||tab|

SBJ Reporter|ret||ret||tab|

eolson@sbj.net|ret||ret||tab|

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A Springfield communications business nearly four decades old has voluntarily filed for bankruptcy protection.|ret||ret||tab|

Atlas Communications, registered with the state as Atlas Mobilfone Inc., filed for Chapter 11 bankruptcy reorganization April 20, according to U.S. Bankruptcy Court documents. |ret||ret||tab|

The family-owned company has been doing business in Springfield since 1965 and has offices at 1903 S. Glenstone in Plaza Towers. Atlas Communications sells wireless communications products such as pagers, cell phones and Dish Network systems, and provides Internet access and Web site hosting services.|ret||ret||tab|

Atlas Owner Steve Powell filed for reorganization protection in the Western District of Missouri. |ret||ret||tab|

The company has until Aug. 18 to provide the court with its reorganization plan. Arthur B. Federman is the judge assigned to the case.|ret||ret||tab|

Powell said there is no plan yet.|ret||ret||tab|

"We're in the early stages and I don't have a plan," he said. "We're working on some things, but I cannot share that right now."|ret||ret||tab|

Powell declined further comment, saying, "It's not a big deal. It's public record that we did (file), but it's nobody's business why."|ret||ret||tab|

Court filings show the company owes between 50 and 99 debtors a total of $366,750. |ret||ret||tab|

Atlas Mobilfone has assets of $692,836, about half of which is in equipment and towers.|ret||ret||tab|

According to the company's statement of financial affairs, business was down 23 percent last year. Atlas estimates monthly losses of $2,801 under current business operations.|ret||ret||tab|

Court documentation further shows gross income was headed downward in recent years. |ret||ret||tab|

Gross income was $1,123,607 in 2003, down $325,203 (22 percent) from the $1,448,810 it reported in 2002. For the 12 months prior to filing, Atlas recorded gross income of $1,068,172.|ret||ret||tab|

And for first quarter this year it grossed $241,306, which annualized for 2004 is $965,224, or 33 percent less than 2002 income.|ret||ret||tab|

There are no creditors holding secured claims. |ret||ret||tab|

The largest unsecured creditors are credit-card companies, including American Express and Bank One, and telephone and Internet services, including MCI, SBC and Sprint.|ret||ret||tab|

Springfield companies BKD LLP and City Utilities are among the unsecured creditors. |ret||ret||tab|

BKD is owed $4,150 for professional fees and CU is owed $2,427 for Internet backbone connection and utility service, a listing of claims shows. Atlas also owes Errett Sechler $14,600 for rent payments at Plaza Towers.|ret||ret||tab|

Powell's father-in-law, Marvin Britton, who founded Atlas Communications, also is listed as a creditor. Britton is owed $28,683 for a "purchase of business" claim. Powell and his wife, Patsy, bought Atlas Communications in 1992.|ret||ret||tab|

Atlas Mobilfone has 30,000 shares of common stock, majority owned by the Patsy R. Powell Trust.|ret||ret||tab|

Powell has hired Robert Plaster of Moon, Plaster & Sweere, Attorneys at Law LLP, to handle the case. Plaster did not return phone calls requesting comment. Attorney fees are $15,000, plus the $839 filing fee, according to a signed agreement in the filing documents.|ret||ret||tab|

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