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University Directories goes bankrupt, attempts to avoid forcible takeover

John Northen , the lawyer representing University Directories, said the collegiate marketing company was looking to sell the business to a potential purchaser.

The potential buyer of University Directories was ELI Global LLC, a Durham-based company owned by Greg Lindberg, according to a press release from the company.

In a surprise move, UDX LLC, another Lindberg-owned entity, bought University Directories’ loans from Bank of North Carolina after the bank acquired Harrington Bank, where the loans were originally based.

After obtaining the loans, UDX quickly declared those loans in default, in a move to take forcible control of University Directories.

“It was an unexpected development,” Northen said.

University Directories then filed for Chapter 11 protection, a form of bankruptcy that allows for reorganization in order to keep a business alive and guard itself from possible takeover.

Thus, the company will be allowed to continue normal operations and work on selling the business, as it is protected by the court.

“Under the court’s protection, University Directories will continue to sell assets,” Northen said.

“We have to thrash it out in bankruptcy court.”

As a way to pay off its loans, Northen said the company would sell assets that include Heavner’s house in Hilton Head, S.C., and a house in Chapel Hill.

They still plan on selling University Directories to a different buyer.

Meanwhile, UDX has sued University Directories in Durham County Superior Court over the incident.

In the suit, UDX representatives have alleged that University Directories, Heavner and other businesses owned by Heavner owe UDX $5 million in total, while continuing to mismanage their own finances.

Evan Lohr, the lawyer representing UDX, declined to comment for this story.

The company has never missed a bank payment and is current on all of its loans, according to a press release from the company.

In addition to University Directories, Heavner owns Chapelboro.com , an Orange County news website.

Heavner was inducted into the Chapel Hill-Carrboro Business Hall of Fame in 2013 for his broadcasting work, including his time with WCHL, a historic Chapel Hill radio station.

city@dailytarheel.com

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