CHARLES & COLVARD LTD 8K

Charles & Colvard, Ltd. filed a June 2026 Chapter 11 monthly operating report showing continued cash‑loss operations, use of DIP financing from Van Lang Jewelry, a completed June 22, 2026 auction of its assets won by AJS Creations for $2.7 million, and ongoing plan formulation and bankruptcy-related obligations.

Charles & Colvard, Ltd., currently a Chapter 11 debtor in possession in the U.S. Bankruptcy Court for the Eastern District of North Carolina (Case No. 26-00969-5-DMW), filed its monthly operating report for the period June 1–30, 2026, showing that it continued to operate its business but incurred a cash loss, remained current on post‑petition taxes and administrative expenses, maintained insurance coverage, and utilized multiple debtor-in-possession operating accounts. The report notes that pursuant to a March 25, 2026 interim order, the company received debtor‑in‑possession financing from Van Lang Jewelry, and that under an April 29, 2026 sale procedures order an auction of the Debtor’s assets was held on June 22, 2026, at which AJS Creations was the winning bidder with a $2.7 million offer; the Debtor is now working with counsel to formulate its Chapter 11 plan. The report details significant intercompany transfers with subsidiaries, ongoing borrowing and repayments involving Van Lang Jewelry, material operating disbursements including payroll, inventory purchases, advertising and professional fees, aging trade payables of $409,301 (with past-due lease obligations to SBP Office Owner LP/Trinity Partners), officer compensation to Michael Levin and Clint Pete, and confirmation that no property sales closed during June despite the auction outcome, while aggregate second quarter disbursements of $1,934,375 give rise to a U.S. Trustee quarterly fee obligation of approximately $17,409.38.

Filing Facts

CIK

1015155

Ticker

-

Form

8K

Source Type

sec

Accession

0001104659-26-088799

Alert Tier

8