Diamond Had $1 Million in Cash Available as of April 2, Court Documents Say

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."

CLICK HERE for full transcript of April 2 hearing.

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