Bank seeks Casa Bique assets
By Thomas Russell -- Furniture Today, October 13, 2004
At the Market — A bank has gone to court to protect assets it claims in a bankruptcy case involving defunct case goods producer Casa Bique Inc.
SouthTrust Bank is attempting to lift a stay on the sale of furniture and related assets it had seized from the company's factory and showroom this year.
The sale was scheduled to take place as part of the bank's efforts to recoup its losses on a $2.4 million loan it says Thomasville, N.C-based Casa Bique defaulted on. The bank took legal action to require the company to forfeit its tangible assets, mostly furniture that served as collateral.
As of Sept. 17, Casa Bique owed SouthTrust $1.23 million in principal and interest, according to court documents.
Auctions to sell off the inventory were scheduled to take place beginning Sept. 18. But two days before the sale was to take place, Casa Bique filed for Chapter 7 bankruptcy protection, a voluntary action that allows it to sell inventory as part of a liquidation process.
In bankruptcy court filings, Casa Bique listed $1,750 in assets and $829,938 in debt, not including the secured debt owed to SouthTrust.
The company's former president, R. Allen Douglas, said Casa Bique ceased operations in early 2004 in a process that ultimately led to the bankruptcy filing.
"With the declining sales that occurred after Sept. 11 (2001) and pressures to reduce debt, it became apparent that the best way to insure the highest return on the remaining assets was through the filing. This will facilitate the orderly closure of this entity," Douglas said in a written statement.
After ceasing operations of Casa Bique, Douglas formed Classics By Casa Bique, a company that imports and produces an entirely new line of products unveiled last market. It is showing this market at 122 N. Hamilton St.
An attorney for the bank also declined to comment, other than to say that a future hearing will determine the value of the collateral and what Casa Bique must do to protect the bank's interest in it.
For now, the assets remain under the control of the bankruptcy trustee. Douglas said Casa Bique aims to sell its remaining assets in a manner that maximizes return for debt holders.
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