EVANS PRODUCTS SEEKS COURT PROTECTION
Evans Products Co. and seven subsidiaries said Tuesday that they have asked for court protection from creditors while attempting to reorganize under Chapter 11 of the U.S. Bankruptcy Code.
The company said, however, that one subsidiary--Evans Transportation Systems & Industrial Group--was not included in the petition. It manufactures and leases a fleet of speciality rail cars and truck trailers.
Evans Products, which has been controlled by Miami Beach financier Victor Posner since 1983, manufactures building products and operates retail stores that sell building products and hardware.
Last week, Evans officials threatened to file a Chapter 11 petition if they could not reach an agreement with their lenders on repayment of $600 million in debts that came due Jan. 15.
Under Chapter 11, a company obtains a federal court order freeing it from the threat of creditors’ lawsuits until it can develop a plan to put its finances in order.
Bruce Greer, a lawyer representing Evans Products, said the petition, filed after normal working hours Monday, should have no effect on the companies’ day-to-day operations.
Evans Products listed assets of $212.06 million against liabilities of $445.22 million. It said its 30 secured creditors are owed $381.20 million.
Claims Listed
The largest subsidiary, Grossman’s Inc., whose interests include a lumber company, and liabilities of $124.34 million.
Unsecured claims against Evans Products, according to its filing, include Manufacturers Hanover Trust Co. of New York, with principal of $50.18 million and interest of $1.66 million; Continental Illinois National Bank & Trust Co. of Chicago, $31.56 million principal, $1.04 million interest; Bank of America, San Francisco, $30.38 million principal, $1 million interest; United States National Bank of Oregon, $24.51 million principal and $813.461 interest, and Chemical Bank of New York, $23.51 million principal and $780,047 interest.
Greer said he hopes a new financial package would be put together soon under the supervision of U.S. Bankruptcy Judge Thomas C. Britton of Miami, who has been assigned the case. Britton set a hearing for Friday.
Evans Products subsidiaries that filed bankruptcy petitions included Rand Acceptance Corp., Evans Steel City Inc., Grossman’s Inc. Lindsley Inc., PIC Holding Co., HMC Funding Corp. and Evans Financial Corp.
Greer said the petitions will have a negative impact “from an investment standpoint” on Sharon Steel Corp., a Posner-controlled company that owns about 42% of Evans Products, but added that it should not affect daily operations of that company or others.
