Geminex, Unit File for Reorganization

Geminex Industries Inc. and its main operating unit, General Amusement Corp., have filed for reorganization under Chapter 11 of the federal bankruptcy laws.

Geminex, a Calabasas-based concern formerly known as Cointel Corp., operates video games in movie theaters and other retail outlets, and was a pay-telephone distributor. The companies’ May 2 bankruptcy filing listed combined assets of about $3.12 million and debts of $3 million.

Under Chapter 11, a company continues operating but is shielded from creditors’ lawsuits while it works out a plan to pay its debts.

Paul Halperin, a lawyer for Geminex, said the reorganization became necessary after the company had to spend about $500,000 to defend itself in three lawsuits. He said two of the suits were filed by purchasers of Geminex’s coin telephones who alleged the equipment did not work.