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The troubles at Kesselring Holding Corp., one of the only Sarasota-based publicly traded construction firms, roll on.
The newest problems, coming after two years of power struggles and declining revenues, could cripple the firm for good. The latest: A federal judge in Washington state has issued a temporary restraining order against the company in connection with a lawsuit filed against it there by Bradley King, a former Kesselring partner and executive. Kesselring has had a branch in Washington for several years.
The injunction basically freezes all of the company's potential activities, including the ability to enter into contracts, issue shares, engage in cash transactions and terminate any board member or employee, according to a Kesselring filing with the Securities and Exchange Commission. A hearing has been scheduled for Dec. 3 on the issue.
“As a result of the above,” Kesselring stated in the filing, “the company may not be able to pay for its annual audit, maintain its reports it's required to file with the Securities and Exchange Commission and, in turn, continue to trade” shares.
Moreover, time is now becoming an issue for the company, as its 10-K annual report for the fiscal year that ended Sept. 30 is due Dec. 29. “If the company fails to timely file this report and fails to continue to trade [over the counter], it can be expected that the value of the company's shares of common stock will be rendered worthless,” Kesselring stated.
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