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IPII > SEC Filings for IPII > Form 8-K on 17-Jun-2009All Recent SEC Filings

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Form 8-K for IMPERIAL INDUSTRIES INC


17-Jun-2009

Costs Associated with Exit or Disposal Activities

Cost Associated with Exit or Disposal Activities.

On June 9, 2009, the Board of Directors of the Company adopted a plan of disposal for its subsidiary, Just-Rite to liquidate its Assets and pay its creditors and, in accordance therewith, entered into the Assignment with the Assignee effective June 11, 2009. Just-Rite ceased all operations on that date. See Item 2.01 above for a more complete description of the Assignment.

The Company operates in the residential and commercial construction industry which is down sharply over the last two years. The depressed residential and commercial construction market has had an adverse effect on the Company's liquidity, capital resources and results of operations. As a result, the Company's Board of Directors determined it was in the best interest of the Company and its shareholders to cease Just-Rite operations and to provide for an orderly liquidation of its assets.

Upon execution of the Assignment, the Assignee took possession of the Assets, commenced administration of Just-Rite's estate, started liquidating the assets, paying all costs and administrative expenses and paying all of the debts and liabilities of Just-Rite to the extent funds are available.

We expect the majority of the Assets to be liquidated by August 31, 2009.

The Company is unable to determine a good faith estimate of the estimated costs or a range of estimated costs to be incurred as a result of the Assignment. The Company will file an amended report on Form 8-K after it makes a determination of the estimated costs or range of estimated costs.

Item 9.01

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