Quaker receives $2 million to cover liquidation expenses
By Furniture Today Staff -- Furniture Today, July 30, 2007
Fall River, Mass. — Troubled Quaker Fabric said one of its lenders had agreed to advance the company up to $2 million to cover expenses related to the impending liquidation of its assets.
In a filing with the Securities and Exchange Commission, Quaker said the new funds could be used only for expenses included in a wind-down budget prepared by RAS Management Advisors, a consulting firm retained to help the fabric producer with the liquidation process.
In early July, Quaker announced it was likely to close. The following day, its two principal lenders, Bank of America and GB Merchant Partners, issued default notices, but didn't demand immediate repayment of their loans.
Quaker's factory here was closed for its annual summer shutdown when the announcements were issued, and the facility is not likely to reopen, the company has said.
The latest regulatory filing said the loan to cover liquidation expenses was made by GB Merchant Partners with the consent of the bank.
