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ReconRobotics creditors seeking Chapter 11 bankruptcy

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Edina-based ReconRoboticsReconRobotics’ creditors have asked a federal court to put the firm into Chapter 11 bankruptcy reorganization.

The creditors say the company owes them $9.5 million, the Minneapolis-St. Paul Business Journal reports.

ReconRobotics makes lightweight, self-propelled robots used by the military, law enforcement and security agencies.

The company’s biggest customer is the U.S. government.

ReconRobotics recently laid off about two-thirds of its 60 employees and in-house contractors, the Star Tribune reports.

The company told the paper it was forced to cut its staff by two-thirds after sequester-related cuts kill a deal with the U.S. Army.

Company officials had said they would rebuild staff if federal business picked up this year.

The company’s creditors include Winona-based RiverStar and Rushford-based RiverBend, affiliated companies both listing Stephen Craney as president.

RiverBend, a manufacturer, said in court filings that it's owed about $3.05 million for unspecified goods. Supply-chain management business RiverStar says it is owed about $5.38 million for goods.

The creditors are asking for what is known as an involuntary bankruptcy, which is when a judge settles an insolvent company's debts through reorganization or liquidation.

ReconRobotics has not yet responded in court.

The bankruptcy case is pending before the United States Bankruptcy Court for the District of Minnesota, assigned to bankruptcy judge Kathleen Sanberg.

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