Pryor Resources Inc., Shawnee Mission, KS, will file for Chapter 11 bankruptcy protection while simultaneously defending itself against a lawsuit filed by an investor group, the Kansas City Star reported today. The suit was filed against former owners Fred Pryor, Philip R. Love and Michael B. Hays, the newspaper said.
According to the Star, the suit was filed by venture capital group Thayer/Patricof Education Holdings. The two firms purchased the company for more than $80 million in 1999 and injected an additional $18 million into it in May. The Star said that the suit alleges Pryor, Love and Hays overstated the value of the company, and seeks to recover the proceeds of the sales.
The Star also said that Pryor, Love and Hays sued Thayer/Patricof earlier this month, alleging that the buyers suffered business losses through their own actions.
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