The Chapel Hill, North Carolina-based Mountain Power Systems, Inc, distributes a range of industrial, farming, marine, and automotive parts to customers across the region. The company filed for Chapter 11 bankruptcy protection.
The latest move is an attempt at helping it reorganize its finances while facing unsecured claims of over $5 million. Operations are expected to continue as normal under the guidance of the court.
Mountain Power Systems, Inc. Files for Chapter 11
The company made its filing on May 12, 2026, according to the case details available on PACER. Court records show the case is being handled in the U.S. Bankruptcy Court for the Eastern District of North Carolina.
CEO Iliya Sokolovsky signed the petition as the company’s authorized representative. Attorney Zachary Malnik of Waldrep Wall Babcock & Bailey PLLC is the legal counsel in the case.
Company Faces Over $5 Million in Unsecured Claims
Case filings show that Mountain Power Systems, Inc. listed between 50 and 99 creditors in its petition. The company further added a list of creditors with the 20 largest unsecured claims. Their claims total more than $5 million.
Wetherill Associates, Inc. was the largest unsecured creditor with a claim of around $1.9 million. Other names in the list were American Express National Bank, Celtic Bank, Itria Ventures LLC, and more.
The claims include trade debt, lines of credit, shareholder loans, and credit card obligations. Court filings indicate that funds will be available for distribution to the unsecured creditors.
Highlights from the Petition
As of now, the company has made limited filings in the court. One of these includes a corporate ownership statement. Key details from the Chapter 11 include:
- Filing Date: May 12, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the Eastern District of North Carolina
- Type of Filing: Active, Voluntary Petition
- Chapter: 11
- Case Number: 26-02151-5-DMW
- Estimated Assets: Between $1,000,001 and $10 million
- Estimated Liabilities: Between $1,000,001 and $10 million
- Estimated Creditors: Between 50 and 99
- Reason for Filing: Restructure business under court supervision
About the Company
As a multi-industry parts distributor, Mountain Power Systems, Inc. serves the industrial, agricultural, marine, and automotive verticals. The company’s operations are built around shared sourcing, procurement, and logistics across these sectors.
The company says it has expanded its online distribution over the past decade, focusing on e-commerce, automation, and data-driven operations.
As the case moves ahead, the distributor is expected to normally continue operations under court guidance while meeting creditor obligations.
