Receiver Offers Details on Plans for Taylor Building ProductsOctober 26th, 2012 by DWM Magazine
Taylor Building Products has defaulted on loan payments with an unpaid balance to Huntington National Bank of $3,956,116.67 (term note), as of October 10, 2012, according to court documents filed on October 11 in the U.S. District Court in the Southern District of Ohio. Bill Frazier, Raintree Capital, was appointed as the receiver and has been working with the company since June. He told DWM today that “the plan is to sell the door slab company in tact.”
“There have been several expressions of interest,” he said. “There will be a court filing in a few days identifying the interested parties and then other parties will have an opportunity to bid.” He adds that the parties are working to try to bring this to conclusion by the end of November.
The plaintiff, Huntington National Bank, Taylor Building Products, and a non-party known as The Premium Glass Co., entered into a loan and security agreement, in the amount of three million dollars, on or about April 13, 2011, documents state. A little more than a month later the parties entered into a forbearance and loan modification agreement, pursuant to which the terms for the balance of the revolving loan would be due and payable in full no later than September 1, 2012.
The forbearance agreement required the parties to maintain a fixed charge coverage ratio and a certain leverage ratio and also required Taylor and Premium to cooperate with an operational and financial consultant. The parties failed to maintain the required fixed charge coverage ratio and leverage ratio and failed to cooperate with the consultant according to court documents.
The plaintiff is requesting judgment against Taylor on the term note plus interest of $642.31 plus additional amounts to which the plaintiff is entitled under the term loan documents including, but not limited to, late charges, collection costs and legal fees.