For the second time in five years, San Antonio furniture maker KLN Steel Products Co. LLC has sought bankruptcy protection from creditors, the San Antonio Express-News reported today. KLN and its Dallas-based parent company, AGS Enterprises Inc., each filed emergency chapter 11 bankruptcy petitions on Wednesday in U.S. Bankruptcy Court in Dallas. AGS does business as Avteq Inc. KLN, which makes furniture for military barracks and universities, reported both assets and liabilities in the range of $1 million to $10 million. The filing comes as the company is defending itself against a whistleblower lawsuit alleging that it defrauded the federal government out of millions of dollars. The complaint was brought by a rival company, and KLN President Kelly O’Donnell previously has said that the allegations are untrue. Read more.
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