RTA giant Bush Industries files Chapter 11.Bush Industries inc. of Jamestown, NY, one of the nation's largest manufacturers of ready-to-assemble furniture Ready-to-assemble (RTA) furniture, also known as "knock-down furniture" or "flat packs", is furniture supplied as a kit of flat parts and fasteners to be assembled, usually by the end user, with simple tools. with annual sales of about $300 million, has filed for Chapter 11. The company's announcement that it would seek bankruptcy protection from creditors came one day after Paul Bush resigned as chairman, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and director of the company and its subsidiaries. Under the proposed plan of reorganization, Bush's outstanding senior debt of approximately $160 million will be restructured with approximately $70 million of debt being refinanced through 2006 and the balance of approximately $90 million being converted into 100 percent of the equity of the reorganized re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. company. "This restructuring, once fully implemented, will allow Bush to take full advantage of the fundamental strength of our core business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets ," said Bush, who has agreed to remain as a Bush employee during the company's transition. "Our customers and suppliers should experience no change in the way we do business with them and will continue to receive the same high-quality goods and service to which they are accustomed," be added. Michael Buenzow has been elected by Bush's board of directors to serve as the company's interim GEO (Geostationary Earth Orbit) A communications satellite in orbit 22,282 miles above the equator. At this orbit, it travels at the same speed as the earth's rotation, thus appearing stationary. through the Chapter 11 proceeding. The company also appointed David Dawson as its interim chairman of the board. |
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