Art Leather files ch 11

[HotHolly]

Has anyone seen this 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.

[Daniel Bates]

Ouch. I know some of us here use Art Leather...

[L Stegall]

Hey, a Chapter 11 reorg is way better than a liquidation. Doesn't mean they'll go out of business (yet). Companies can and do emerge from Ch. 11.

[adirty1]

chapter 11 is nothing. companies do that all the time. hell trump did it 3 times.
nothing better than getting rid of your debt and starting over under a second name but still keeping the first name. all business...