According to bankruptcy court documents, TSG owes PNC Bank approximately $4.9 million under three separate loans, which were secured by ‘substantially all’ of the company’s property and some of its mortgages. With two loans already getting matured by December 1, 2009 and the third loan, due to mature in December 1, 2010, defaulting on any one loan automatically throws the others into default.
As per loan agreements, TSG owes the bank more than $2.7 million as of December 1, 2009. The firm has asked the court to allow it to use cash collateral to keep its operations running and also requested an expedited ruling on the matter. PNC cut off access to TSG’s loan in late July, and the fabric finisher has been running operations using accounts receivable.
The 108 year old company is a major domestic supplier of finishing services to the decorative home furnishings industry as well as contract, institutional, medical, industrial, and apparel fabric firms. Its four operating divisions include Synfin Industries, Synthetics Finishing, Combeau Industries, and Longview Machinery Company.
