Allied Digital Technologies Seeks Bankruptcy Protection

Hauppauge-based Allied Digital Technologies Corp., which

duplicates film, video and compact discs, filed for Chapter 11 bankruptcy

protection from creditors in the face of heavy debt.

In documents filed in U.S. Bankruptcy Court in Delaware Wednesday, the

private company listed more than $100 million in debts and less than $50

million in assets.

Allied Digital was taken private in 1998 by an affiliate of Citicorp

Venture Capital Ltd. Allied Digital owes an estimated $90 million in loans to

various banks, including more than $10 million to Fleet Corporate Finance Inc.

of New York, according to court papers.

In its filing, the company said it had an estimated 1,000 creditors, and

that it expected that funds would be available to distribute to unsecured

creditors.

Among the company's largest creditors is Hauppauge-based Disc Graphics,

which court document show is owed $856,444; Long Island Power Authority, which

is owed $126,040, and Spiro-Wallach/Unisource, of Farmingdale, which is owed

$261,046.