Standard Brands paints morbid picture if it doesn't get entire $17 million in financing.The survival of Standard Brands Paint Co. hinges Hinges may refer to:
New debt obtained by a firm during the Chapter 11 bankruptcy process, Federal Bankruptcy Rule 4001 (c)(1). This financing is unique because it is secured, that is, it has priority over existing debt, equity and other claims. , court documents reveal. The retailer already has $10.7 million of this, but must wait unit March 3 court hearing to get its hands on the rest. "Without such financing, the debtors (Standard Brands) would have difficulty maintaining the required levels of inventory to service its customers, could lose the confidence of its trade creditors and, as a result, be unable to continue its retail 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 ," a court document states. Torrance-based Standard Brands filed for Chapter 11 bankruptcy protection Feb. 11, citing assets of $280 million and liabilities of $166 million. Standard Brands is a manufacturer, retailer and distributor of paint and operates 135 retail paint stores. Standard Brands officials asked the U.S. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. for permission to secure a total of $17 million in financing from Santa Monica-based Foothill Capital Corp., an investment firm. The bankruptcy court on Feb. 13 gave the green light on $10.7 million of the financing so the retailer could start restocking shelves for its upcoming peak selling season, April 1 to Sept. 1. Standard Brands will have a chance to secure the remaining $6.3 million at a court hearing March 3. Court documents elaborate on the importance of Standard Brands getting all the financing. Prior to the bankruptcy filing Standard Brands was under growing pressure from suppliers. "Increasingly over the past months, suppliers have been restricting their extension of credit to the company," a document filed the date of the bankruptcy petition states. "In the past 30 days, a majority of the company's suppliers have demanded cash-on-delivery or even cash-before delivery terms." Furthermore, Standard Brands' inventory levels have fallen to at least 20 percent below normal, which amounts to a $15 million shortfall in store inventory, the document goes on to state. On another front, court documents show Standard Brands retained the law firm Stutman, Treister & Glatt Glatt may refer to:
"During the one year prior to the date of filing this Chapter 11 petition, the firm received from Standard Brands Paint Co. . . . $300,000 as compensation for fees and reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. of costs for legal advice and services rendered and as a retainer A contract between attorney and client specifying the nature of the services to be rendered and the cost of the services. Retainer also denotes the fee that the client pays when employing an attorney to act on her behalf. for legal services legal services n. the work performed by a lawyer for a client. to be rendered as insolvency counsel to the debtor and debtor-in-possession financing in this Chapter 11 case," the document states. |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion