by List of companies includes suppliers from U.S. and around the world
DALLAS — Corsicana’s top 20 unsecured creditors listed in its bankruptcy filing shows a diverse mix of businesses both in the U.S. and abroad that are on the line for millions of dollars.
According to the company’s bankruptcy declaration filed over this past weekend, the company owes $45 million to unsecured creditors. Of that the top 20 unsecured creditors have nearly $24 million in claims, or more than 53 percent of the total.
The top unsecured creditors and their claims are:
+ UFP Southwest LLC, Dallas – $4.94 million
+ Iskeceli Celik Yay Tel Yan Urunleri, Istanbul Turkey – $4.37 million
+ FXI Inc., Radnor, Pa. – $2.5 million
+ Agro International, Bad Essen, Germany – $1.97 million
+ JB Hunt Transport, Lowell, Ark. – $1.79 million
+ United States Customs and Border Protection, Indianapolis, Ind. – $1.56 million
+ Yilmar Dis Ticaret Ltd., Cadbursa, Turkey – $1.27 million
+ Axle Logistics, Knoxville, Tenn. – $660,551
+ Visual Products Group, Wixom, Mich. – $602,558
+ All American Poly Corp., Piscataway, N.J. – $593,032
+ TWE Nonwovens U.S., High Point – $545,395
+ Pioneer & Legend, Canada, North York Ontario – $480, 130
+ OHM Systems Inc., Cincinnati, Ohio – $436,187
+ UT+C KKGF, Danville, Va. – $432,535
+ Culp Inc., High Point – $317,775
+ FedEx, Palatine, Ill. – $256,645
+ Sidney Austin, Chicago, Ill. – $242,943
+ Les Tricots Maxime, St.-Laurent, Quebec – $222,219
+ Future Foam, Omaha, Neb. – $214,760
+ Crowe LLP, South Bend, Ind. – $210, 955
Whether these or other unsecured creditors get paid depends largely on the success of the reorganization process. According to the American Bankruptcy Institute Journal, typically, first-day motions will include requests for the authority to pay certain obligations including employee wages and the claims of critical vendors.
The publication noted that in most cases the bankruptcy court will grant such motions where it can be determined that paying these vendors is critical to maintaining the debtor’s ongoing operations.
Through the securing of $58 million in Debtor in Possession financing, the company is able to maintain its operations moving forward, although it is unclear how much of this will go to pay unsecured claims. The funding includes $40 million in revolving loans from Wingspire Capital and $18 million in term loans from Blue Torch Finance LLC, the stalking horse bidder for the company.
“Once approved, such financing orders have a huge impact on the priority scheme for recovery in the bankruptcy case, as they usually involve priming and replacement liens, intricate debt service requirements and carve-outs for specific types of claims,” the American Bankruptcy Institute Journal noted.
