Small Biz: Chattanooga manufacturer East Tech reorganizes after bankruptcy filing

photo East Tech Co. CNC Machinist Bill Sanec cleans flight critical aluminum hardware being manufactured for Boeing while at the Amnicola Hwy. business on Thursday.

A Chattanooga custom tooling design and computerized manufacturer has filed for bankruptcy to avoid a foreclosure against the business's riverport factory.

East Tech Co., an 11-year-old firm that moved into a River Terminal Road facility seven years ago, is reorganizing its finances under bankruptcy court protection after owner Roger Layne filed a Chapter 11 petition on Monday

"We filed the bankruptcy petition to stop the planned foreclosure sale today," Layne said Tuesday. "Our sales peaked in 2008 and we've had some ups and downs since, but the main problem was our inability to work out anything on the building note."