UPDATED: Trainor Glass Co. files for voluntary Chapter 11 bankruptcy
UPDATE: Trainor Glass filed a motion in the Chapter 11 case on March 13, seeking to use cash collateral and obtain post-petition financing to “pay for the costs of the preservation and orderly liquidation of debtor’s assets, and to pay for the costs of administration of the debtor’s chapter 11 case,” according to the court documents.
First Midwest Bank, the bank involved in the motion, has “agreed to allow [Trainor] to use a portion of its cash collateral to pay for the pre-petition wages due [its] former non-insider employees ... and related payroll obligations in an amount not to exceed $494,000."
A hearing on the motion is scheduled for April 10, 2012.
Trainor Glass Co., which ceased operations in February, filed for voluntary Chapter 11 bankruptcy on March 9, with the Northern District of Illinois U.S. Bankruptcy Court. Court documents list Trainor's estimated number of creditors at between 1,000 and 5,000, with estimated liabilities totaling between $50 million and $100 million.
A case filed under Chapter 11 of the United States Bankruptcy Code allows a debtor to reorganize or liquidate pursuant to a court-approved plan. The meeting of creditors will take place April 24 in Chicago, according to court documents.
United Architectural Metals is one of the glass industry suppliers owed. “The project we were working on is bonded, so we are going to get paid,” says Scott Clymire, vice president. “We are very lucky. It is a lot of paperwork. We have to prove we supplied the product by providing purchase order back-ups, proof of delivery, stored material still at our facility, etc.”
Read a related article on the anticipated effects Trainor's closing will have on the glass industry.
Stay tuned to GlassMagazine.com for more information as it becomes available.