Lender pushes for Douglas Furniture liquidation
Douglas Furniture’s principal lender has filed a motion to dismiss the company’s Chapter 11 bankruptcy case, arguing that the upholstery and casual dining resource has no realistic prospects of resuming operations.
“The bankruptcy case was filed for one reason to liquidate property in which Heller holds a first-priority lean,” the motion states. “(Douglas) is no longer operating, and all that remains to be accomplished is the collection of accounts receivable. There are no other significant assets, and minimal prospects for sale.”
“The value of the assets will not approach the total secured debt owed to Heller and the lenders in either a going concern sale or a liquidation,” Heller said in the filing.
Heller argues that the sale of the assets could be accomplished more efficiently, and with fewer administrative fees, out of court.
Tags: assets, chapter 11 bankruptcy, fir, furniture, irs, prospects, ptc, rope, upholstery, urn, whRelated posts
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