MFM Industries Inc., the maker of cat litter under brands including Hartz and Mighty Cat, filed for chapter 11 protection amid litigation-related debt with plans to sell the business, Bloomberg News reported yesterday. The Ocala, Fla.-based company listed as much as $50 million each in assets and liabilities in its chapter 11 papers filed yesterday. The 2011 lawsuit, resulting in an $809,000 judgment against MFM, was filed by Terex Financial Services Inc. alleging that MFM was in default of an equipment lease. In addition, a secured creditor, Palmer Resources LLC, is demanding about $5.2 million from a defaulted note, according to court papers.
