Editing Smart Parts (section)

== Financial difficulties and bankruptcy ==

=== Industry downturn ===

Smart Parts experienced financial difficulties during the global economic downturn of 2008–2010.

The company's founders subsequently attributed its collapse partly to the financial crisis and the withdrawal of approximately US$15 million in financing by PNC Bank.[1]

This account reflects the founders' explanation of the company's difficulties and does not independently establish the recession or bank financing as the sole causes of its bankruptcy.

=== Bankruptcy proceedings ===

Smart Parts filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Western District of Pennsylvania on 13 May 2010.

The proceedings were recorded under case number 10-23521.[5]

In July 2010, the company applied to convert the case to Chapter 7 liquidation.

The bankruptcy record identifies 24 August 2010 as the formal date of conversion from Chapter 11 to Chapter 7.[5]

The proceedings ended Smart Parts' operations as the original manufacturing business.

=== Sale of intellectual property ===

Following the bankruptcy, the company's intellectual property portfolio was sold.

On 30 March 2011, [[Kee Action Sports]] announced that it had acquired the Smart Parts intellectual property portfolio.

The acquisition included patents associated with electronic paintball marker technology and existing licensing agreements.[6]

United States patent assignment records identify transfers from PNC Bank to Kee Action Sports, with an effective date of 29 March 2011.[17]

The transaction transferred intellectual property rights but did not constitute the continuation of the original Smart Parts manufacturing company.