Tuesday, September 7, 2010

American made, American used, American gone

Sovereign Bank rocked on $7M quarry loan

Fletcher Granite Company LLC filed for Chapter 11 reorganization and recently said it believes its assets will sell for more than the bank debt. The quarry business has generated as much as $18 million in annual revenue in recent years, but slack demand for granite curbing has hurt operations.

Sovereign Business Capital in Princeton, N.J., is the chief creditor in the bankruptcy case and has moved to restructure about $7 million in financing that was extended in 2006, according to court papers.

But during the past several years, the business has suffered at the hands of obsolete technology and a building industry recession. During the past three years, annual revenue has declined to $11.5 million from $17.9 million, court records show.
“The demand for Fletcher granite also declined due to increased use of less expensive concrete in building and road construction, as well as competition from foreign suppliers,” court papers said.

Read more: Sovereign rocked on $7M quarry loan - Boston Business Journal

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