---------------------- multipart/alternative attachment CINCINNATI (AP) - Baldwin Piano & Organ Co. may not be able to collect at least $2 million it is owed and could be evicted from its corporate headquarters for nonpayment, lawyers told a bankruptcy court. U.S. Bankruptcy Judge J. Vincent Aug Jr. promised a ruling as soon as Tuesday on whether to approve an interim financing arrangement to help Baldwin get through its Chapter 11 reorganization. The 139-year-old company filed for Chapter 11 on May 31, which allows a company to operate under bankruptcy court protection from lawsuits while it develops a plan to pay its creditors. Lawyers told the judge at a hearing Monday that Baldwin already has defaulted on a financing agreement with its main lender, General Electric Capital Corp. The companies said they are trying to negotiate new terms. Attorneys representing Baldwin's unsecured creditors urged the judge not to approve the interim financing for Baldwin. The other creditors fear that GE Capital will require repayment terms of Baldwin that will affect their ability to collect. Meanwhile, GE Capital had to advance Baldwin $800,000 to meet its last payroll. Duke Realty, a developer and landlord, wants to evict Baldwin from its headquarters, a warehouse and an outlet store in Mason, 20 miles north of Cincinnati, unless Baldwin resumes paying rent. Its rent debt for that space will reach $144,000 on Thursday, said Louis Solimine, a lawyer for Duke Realty. Baldwin management also says the company is unlikely to soon collect at least $2 million it had been counting on receiving from two customers. Baldwin said its largest piano dealer, Chicago-based Biasco Musical Instrument Co., is itself in financial trouble and cannot pay at least $1 million it owes the piano maker. And, Deutsche Financial Services will not pay about $1 million that Baldwin was expecting. Deutsche wiped out that obligation on the basis of financing it had provided to Baldwin before the Chapter 11 filing, Baldwin lawyer Tim Hurley said. ---------------------- multipart/alternative attachment An HTML attachment was scrubbed... URL: https://www.moypiano.com/ptg/pianotech.php/attachments/c5/80/ae/1f/attachment.htm ---------------------- multipart/alternative attachment--
This PTG archive page provided courtesy of Moy Piano Service, LLC