From the Associated Press
Novelty ice cream maker Dippin’ Dots has filed for federal bankruptcy protection, but is asking a judge to allow it to use cash collateral to continue operations.
The Paducah-based company submitted the filing Thursday night. The company says that allowing it to use the cash collateral and stay functioning will not harm creditors, including Regions Bank, which is owed $11.1 million.
Regions Bank sued Dippin’ Dots in February, alleging the company defaulted on multiple loans.
Dippin’ Dots—which sells beads of ice cream—markets itself to stores as well as a number of amusement parks across the country, theaters and malls.
U.S. Bankruptcy Judge Thomas H. Fulton has been assigned the case.