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*Mike*
16th of June 2007 (Sat), 12:21
Has anyone seen this (http://www.bloomberg.com/apps/news?pid=conewsstory&refer=conews&tkr=GM:US&sid=ahzVi4XSvlgo)yet?
Photo Album Maker Art Leather Files to Reorganize in New York
Art Leather Manufacturing Co. Inc., a manufacturer and distributor of leather photo albums, filed a Chapter 11 petition yesterday in New York, listing asset of $3.2 million against debt totaling $11.8 million.
Having trouble paying its bills, Art Leather entered into an out-of-court composition agreement with its unsecured creditors in March 2005. The company defaulted after making the first payment and also defaulted on a forbearance agreement with its secured lender.

Art Leather, located in Hicksville, New York, has $4 million in financing for the reorganization supplied by the pre- petition lender Merchant Financial Corp. At filing, the secured debt was $2.8 million secured by all of the assets.

Art Leather has a manufacturing facility in Tijuana, Mexico.
In a bankruptcy court filing, the company blamed the bankruptcy on ``intensive competition.''

The case is In re Art Leather Manufacturing Co. Inc., No. 07-11833, U.S. Bankruptcy Court, Southern District New York (Manhattan).

Suck. I was hoping that was a rumor.

liza
16th of June 2007 (Sat), 23:44
I hadn't heard that, Mike. And I checked recent threads over at DWF but didn't see any mention of it. Even though I don't use them, that's a real shame.

Tomi Hawk
17th of June 2007 (Sun), 08:22
Big shame .. :(

mmahoney
17th of June 2007 (Sun), 13:59
listing asset of $3.2 million against debt totaling $11.8 million.
Having trouble paying its bills, Art Leather entered into an out-of-court composition agreement with its unsecured creditors in March 2005.

Bad news, but the questions presents themselves just how much money do you need to produce wedding albums ($11 million :rolleyes: in debt) and how do lenders allow $8 million of it to be unsecured ?
Mike

liza
17th of June 2007 (Sun), 14:27
Probably because they were a multimillion dollar corporation. Just a guess.

Bob Charnier
18th of June 2007 (Mon), 14:45
I have an album on order and called my rep. He said that if anything, it should make my turn around on albums quicker now.....