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Sign Company Resolves Bankruptcy American Electronic Sign Will Pay All Unsecured Creditors

Grayden Jones Staff writer

American Electronic Sign Co., a Spokane-based manufacturer of electronic reader-boards and highway-display systems, has emerged from bankruptcy with a plan to pay off its 142 unsecured creditors in full.

AES, which sought bankruptcy protection in June 1994 after losing an expensive patent infringement lawsuit, said Monday it will pay $440,000 in outstanding bills during the next three years. Accounts with the smallest creditors, many of whom are local businesses, will be settled during the next two weeks.

“We regret having to put our creditors and suppliers through this ordeal and we appreciate their ongoing support and the support of the community,” said Nathan Batson, president and chief operating officer.

U.S. Bankruptcy Court Judge John Rossmeissi approved AES’ reorganization and repayment plan last Thursday, Batson said. Key to the plan was an agreement by founder and chairman Luke Williams to defer his personal claims against AES until after all other creditors were paid. AES owes Williams about $1 million.

AES filed for Chapter 11 bankruptcy protection from creditors after a jury in U.S. District Court in Spokane found it guilty of improper use of signage patents held by Unisplay S.A. of Switzerland. AES continues to make installments on a $1 million settlement with Unisplay, Batson said.

“We’re doing very well,” he said. “This puts a bit of a strain on a company, but we can handle it.”

Batson said AES sales jumped 22 percent in fiscal 1995, which ended Sept. 30, to $5 million. The company, which employs 45 people, expects continued growth this year, with the introduction of new products including solar-powered highway construction signs.

“The reception to these products has been phenomenal,” Batson said.

Williams, who founded the company in 1988, said he remains in personal bankruptcy following defeat of his appeal of the Unisplay decision. Williams said he is liable for two-thirds of the approximately $2 million judgment and interest}.

Williams, whose earlier company, American Sign & Indicator Co., had built many of the computerized scoreboards installed in the world’s major sports stadiums, said he soon hopes to negotiate a settlement with Unisplay.

“I have the assets to pay for it,” he said.

, DataTimes