Leaders in Innovation and Nonwovens Commercialization (LINC), the commercialisation subsidiary of North Carolina State University’s Nonwovens Institute, has filed for bankruptcy.
The filing, made on 30 June, indicates that LINC has just over $3.1 million in potential liabilities, which are almost entirely due to court proceedings involving Advoque Safeguard and Ciasom.
That court case appears to be a dispute over the manufacture of N95 masks during the pandemic, in which plaintiffs allege that LINC was part of a supply chain responsible for delivering “deficient materials”.
LINC was created as a nonprofit subsidiary of the NC State University Partnership Corporation. It is a manufacturing incubator that commercialises niche, high-value products developed at the Nonwovens Institute.
While it has access to existing IP and the ability to develop new products, any IP developed through LINC’s work with commercial partners is handled by the Office of Technology Transfer.
A Chapter 11 bankruptcy does not mean LINC will definitely close down, as it is meant to allow a business to restructure its debts and regain solvency. LINC specifically made use of the subchapter 5, which streamlines proceedings and makes them less costly for a small business.
