FINAL APPROVAL OF DEBTOR-IN-POSSESSION FINANCING GRANTED TO STANDARD BRANDS PAINT CO.
FINAL APPROVAL OF DEBTOR-IN-POSSESSION FINANCING GRANTED TO STANDARD BRANDS PAINT CO. TORRANCE, Calif., March 19 /PRNewswire/ -- Standard Brands Paint Co. (NYSE: SBP) announced today that on March 18, 1992 U.S. Bankruptcy Judge Kathleen March granted final approval for a $17 million debtor-in- possession (DIP) financing facility. The credit line, which will be used primarily for working capital needs and to ensure a steady flow of new inventory to the company's more than 130 paint stores, is being provided by Foothill Capital Corp. On Feb. 14, 1992, just three days after its voluntary filing of Chapter 11 for reorganization, Standard Brands received interim approval of $10.65 million of DIP financing. March granted an increase to the interim DIP facility on March 3 to $14 million. The final approval of $17 million, granted on March 18, was supported by the company's unsecured creditors committee and secured creditors. Stuart D. Buchalter, chief executive officer and chairman of the board, stated, "Inventory levels in our retail stores have improved significantly. We are now able to track the daily movement of each product with the benefit of our recently completed Point of Sale and Perpetual Inventory computerized system, and we have already initiated an aggressive print advertising campaign with the confidence that we can provide our customers, as we have for the past 50 years, with the selection, service and value of paint and related products that has made us one of the west's leading paint retailers. "Several months prior to Standard Brands' filing for Chapter 11 the company's board of directors and management had been developing a plan to focus more closely on our core retail paint business and to reduce operational and fixed overhead expenses," continued Buchalter. "Management is continuing those efforts and is committed to make the necessary decisions that will provide profits and long-term growth for Standard Brands Paint Co." Buchalter further reported that, "As previously announced, Carl A. Bellini was appointed acting chief operating officer in December 1991, in connection with the Founders Equity financing proposal. When that transaction did not take place, Bellini was retained and has done an admirable job for the company under the circumstances. Bellini has advised the company's board of directors of his resignation as acting chief operating officer, effective this week." An operating committee will be functioning in the chief operating officer role for an interim period while the board seeks to fill the chief operating officer function. The five-member operating committee consists of three outside directors, Marvin S. Wager (the company's former president), and Buchalter (the company's chief executive officer). The three outside directors are: the committee's chairman, Richard Loeffler, the former president and chief operating officer of a New York Stock Exchange-listed company with a builders hardware division and a member of Standard Brands Paint Co.'s board for 20 years; D. Patrick Curran, the president and chief executive officer of a midwest based paint and chemicals company; and Gerald Lushing, the president and chief executive officer of a Southern California-based real estate development company. Standard Brands Paint Co. is a leading manufacturer, distributor and retailer of paint. The company operates 135 paint stores serving the do-it-yourself market in the west. -0- 3/19/92 /CONTACT: Craig Walker of Standard Brands Paint Co., 310-214-2411, ext. 2391/ (SBP) CO: Standard Brands Paint Co. ST: California IN: REA SU: BCY
SE-KJ -- LA024 -- 9765 03/19/92 14:45 EST
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|Date:||Mar 19, 1992|
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