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CONCORD, ON, Canada -- MSI Spergel Inc., a Toronto-based law firm, has filed a proposal in Canada's bankruptcy court for JVL Corp.'s financial reorganization and repayment of creditors, which is allowed under Canada's Bankruptcy and Insolvency Act.
JVL officials said the court is expected to announce by early January whether it approves the plan or requires modifications, at which time the coin-op videogame maker will release further information to the industry at large. A preliminary notification was sent to all JVL creditors in late November.
JVL has made no statements regarding reasons or conditions that prompted owners to file for reorganization. Company founders Joseph and Val Levitan "continue to support JVL," and the company is conducting business as usual, a spokesperson told VT.
JVL makes touchscreen videogame and media streaming systems, along with casino games. Its Encore and Vortex countertop games are widely used by coin machine operators. The proposed reorganization comes two years after the U.S. Federal District Court in Pennsylvania found that the company infringed multiple patents owned by Merit Industries, and ordered JVL to pay "substantial" damages.
The Levitans founded JVL more than 25 years ago after immigrating from Russia. They also launched another concern that became a leader in banknote validation. That company, CashCode, was sold to Crane Co. in 2006 for $86 million.