Prime Tanning secure funds while they restructure
23 November 2010A federal bankruptcy court has approved Prime Tanning's request to borrow $550,000 from the Maine Rural Development Authority to continue operating while restructuring. They announced on November 16 that the company had filed a petition for relief under Chapter 11 of the United States Bankruptcy Code with the United States Bankruptcy Court in Bangor, Maine.
Prime Tanning based in Hartland, Maine listed total liabilities between $1 million and $10 million, but said it planned to keep its 178 employees working as it reorganises. Most of the $550,000 will be paid to Tasman Industries, based in Louisville, Kentucky. Tasman are reported to be one of Prime Tanning's main hide suppliers, though Prime will still owe the company $163,260, according to the Bangor Daily News. A US Bankruptcy Judge also approved the company's proposal to use a $4 million line of credit from Porter Capital Corporation, which will be used for payroll and other capital operating costs.
Another hearing related to Prime Tanning’s bankruptcy case is scheduled for December 8 at the US Bankruptcy Court in Bangor.
