Had $1 Million in Cash Available as of April 2, Court Documents
Diamond Glass had $1 million in cash available as of April 2, according
to chief financial officer Richard Bunchalk, who testified at a
hearing held in relation to the company's filing for reorganization
under Chapter 11. Diamond filed for bankruptcy on April 1, and the
hearing was held April 2. (CLICK
HERE for related story.)
Diamond chief financial officer Richard Bunchalk also told the
court that the company had $10 million in receivables as of April
2, with a collection rate on receivables of 98 percent-with the
expectation of receiving half of the $10 million within 30 days.
In addition, the Kingston, Pa.-based company had an outstanding
deductible due to its insurer of $500,000-which would be placed
in a reserve for future claims.
J. Scott Victor of National City Capital Markets, Diamond's investment
banker, also testified, and he said that Diamond's original intention
was to pursue a "standalone reorganization plan."
"It was clearly the debtors' intention for many, many, many months
before I was engaged in trying to effectuate a consensual restructuring
between the company, Guggenheim and Kenny Levine, the shareholder,
as well as the bondholders," Victor said. "That did not happen."
HERE for full transcript of April 2 hearing.
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