LOUISVILLE, Ky. (AP) — 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, Ky.-based company submitted the filing Thursday night. The company said in a filing 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.