Margaret Good, appointed receiver in November after PNC Bank filed a mortgage foreclosure in Common Pleas Court, has asked a bankruptcy judge to suspend any involuntary bankruptcy proceedings until June 30, by which time she said the company's assets should be substantially liquidated.U.S.Bankruptcy Court Chief Judge M. Bruce McCullough has scheduled a hearing on Good's motion for March 9, his office said yesterday.
David Rudov, an attorney representing three unsecured creditors who are seeking the involuntary bankruptcy that would give them more say over the company's liquidation, said he opposed Good's request.
Rudov filed the involuntary Chapter 7 petition on Feb. 1, arguing that Good's fiduciary duty lies only with PNC.
Yesterday, Rudov said Good wanted "the autonomy to continue the liquidation of Glenshaw Glass assets to the exclusive benefit of PNC without the procedural safeguards allowed under the Bankruptcy Code."
In her response to Rudov's motion, Good said she was making extensive progress in liquidating the 100-year-old glassmaker, which until its closure last year employed more than 350 at its Shaler plant.
Good said Glenshaw under her receivership had sold more than half of the company's inventory of finished good products valued at about $10.9 million, and had collected some $5.1 million of $5.4 million worth of accounts receivable.
As a result, Good said the company's revolving credit indebtedness had been reduced from $10.1 million as of her appointment last Nov. 5 to $3.74 million as of Feb. 21.
Good said she would continue to explore opportunities to sell the company's fixed assets to a buyer who would resume operations.
She said she had held countless hours of negotiations with several potential candidates, but that none had yet submitted an acceptable offer.