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Trainor Glass Motions to Use Cash Collateral, in Light of Chapter 11 Filing

Post Time:Mar 14,2012Classify:Company NewsView:429


Trainor Glass Co. has filed a motion to use cash collateral, incur post-petition debt, and grant adequate protection and provide security and other relief to First Midwest Bank. The motion followed the company's


"[Trainor] and First Midwest have agreed upon an initial budget for nine weeks," reads the motion. "... First Midwest has agreed to allow the debtor to use cash collateral and, to the extent needed, the [debtor-in-possession] financing to pay the expenses enumerated on the initial budget, and as amended, modified or supplemented from time to time, as may be agreed to by First Midwest subject to a variance of 10 percent per line item and a cumulative variance of 10 percent.


"First Midwest has also agreed to allow the debtor to use a portion of its cash collateral to pay for the pre-petition wages due debtor's former non-insider employees and related payroll obligations in an amount not to exceed $494,000," the court document states.


Trainor's liquidation budget , for the period of March through May, filed as an exhibit (excerpted


The company's nine-week accounts receivable analysis shows a total amount of approximately $1.3 million. Its nine-week staffing for liquidation amounts to $104,019.


The filing also provides insight into the company's demise, and attributes it ultimately to the recession that started in 2008. "By 2010, Trainor found itself with significantly reduced liquidity and financial losses which caused Trainor to close many of its plants, sell equipment, and reduce workforce," reads the motion. "During the period June 2011 - December 31, 2011, Trainor closed 13 facilities, resulting in significant additional losses. On February 21, 2012, after being unable to secure additional financing necessary to continue operating, Trainor ceased business operations and terminated all employees. At that time, Trainor operated nine facilities and had approximately 508 employees (148 union and 360 non-union) in 14 states."


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Source: http://www.usgnn.comAuthor: shangyi

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