Loewen Seeks Bankruptcy Protection

After months of struggling to regain financial health, funeral home and cemetery operator Loewen Group Inc. succumbed to a surfeit of debt and sought protection from its creditors. Loewen said bankruptcy protection filings in Canada and in Delaware would give it time to work out problems created by its aggressive acquisition policy in the 1990s, which made it North America’s second-largest “death-care” provider. Chairman John Lacey said Loewen is confident it can restructure into a “stronger, more competitive enterprise.” The company has received a commitment for up to $200 million in debtor-in-possession financing, and expects its operations in Canada and the United States to continue without interruption or impact on customers. Burnaby, Canada-based Loewen has been under a financial death watch since last fall when it issued its second straight quarterly earnings warning and acknowledged sales and operations problems with cemetery and funeral home operations. The slow sales aggravated problems already created by the $2.3 billion in debt accumulated as Loewen snapped up mom-and-pop funeral homes and smaller cemetery companies across North America and in Britain.