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Chinese fire-drill at Crestwood.

Chinese Fire-Drill At Crestwood

A couple weeks prior to filing bankruptcy, Crestwood Co. engaged in some sort of corporate Chinese fire drill.

Jim Matthews had thoughts of transferring the contracts on construction projects like Prestige Toyota and Catlett & Co.'s North Little Rock nursing home to a shell corporation called Upright Construction.

The objective was to gut General Construction, the Crestwood subsidiary which held the original contracts, and shut it down after the transfer.

The lenders on those and other GC projects vetoed that idea since they had Jim Matthews' name on the dotted line.

The problem was Matthews had already fired the General Construction staff and rehired some of them at Upright. When the lenders played their trump, he had to rehire the Upright staff back to General Construction.

He'd also permanently axed Gary Dean, the six-year head of General Construction.

Dean was given his walking papers the same day he had passed on Matthews' assurances to fellow employees that General Construction would finish its contractual obligations.

General Construction employed as many as 70 during its hey-day and more recently had about 31 folks on payroll.
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Title Annotation:See related article: Crestwood Footnotes, RealDeal$; Whispers
Publication:Arkansas Business
Date:Sep 24, 1990
Words:187
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