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Messy deal.

Messy Deal

More info has come our way for the third week running regarding Precision Business Forms and the story keeps getting messier.

Bank and Business Forms, the largest Arkansas-based business forms company, was going to buy the assets of No. 2 PBF (1989 sales: $5 million-plus) in a deal that blew apart after discontented PBF salesmen threatened to sue both companies.

Rather than buy a lawsuit, BBF backed off from the acquisition. The aborted buyout involved BBF purchasing all company receivables and inventory at 100 percent value and paying PBF a percentage of retained business over a five-year period.

The pivotal issue involved back commissions owed the PBF sales staff. BBF offered to pay the money over a one-year period if the PBF salesmen would join the company.

Bill Bailey, PBF's top producer, accepted the deal, but Charles St. Clair, Melvin Tucker and Steve Linder said no.

Those three, plus Fred Mooney and Quentin Lauer, opted to pursue their grievances against PBF and retained the services of lawyer Darren O'Quinn at the Dover & Dixon firm. In the words of O'Quinn, "we intend to force Precision Business Forms Inc. into involuntary bankruptcy."

And, the salesmen have made good on their promise too. They dragged PBF into bankruptcy court with a Chapter 7 bankruptcy petition. Unpaid creditors can thank the unhappy PBF salesmen the queering the BBF deal.
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Title Annotation:Whispers
Publication:Arkansas Business
Date:Nov 12, 1990
Words:227
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