LEXINGTON, S.C. – Under pressure from its unsecured creditors, Glassmaster Co. has agreed to liquidate its assets almost a year after filing for bankruptcy, reported TheState.com in an article Friday.
Creditors for the former boat builder, which are mostly small businesses, are owed a total of $175,228, according to the newspaper Web site. Among those, however, is Composites One LLC, which is owed almost $50,000, the article stated.
The creditors expressed concern over recent deals made by Glassmaster executives, including the $500,000 sale of equipment to Bentley Industries, which currently manufactures boats carrying the Glassmaster brand. Court documents showed that Glassmaster allowed Bentley to occupy its property without paying rent and to take possession of some equipment and assets at no cost, the newspaper reported.
Among the reasons for Glassmaster’s financial decline was trouble satisfying environmental regulations at a building it purchased in 2005 in an effort to expand capacity and problems obtaining engines from a supplier, which weakened its dealer network during prime boating season, according to the newspaper.
Now, Bankruptcy Trustee Michelle Viera will work to return as much money as possible to creditors. Before companies like Composites One will receive a dime, however, secured creditors like Dorchester County, which is owed $13,223 in back taxes, will benefit from her efforts, the newspaper suggested.
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