A federal bankruptcy court has approved leather manufacturer Prime Tanning’s request to borrow $550,000 from the Maine Rural Development Authority to continue operating while restructuring.
Hartland-based Prime Tanning filed for bankruptcy protection Monday, listing total liabilities between $1 million and $10 million, but said it planned to keep its 180 employees working as it reorganizes. Most of the $550,000 will be paid to Louisville, Ky.-based Tasman Industries, Prime Tanning’s hide supplier, though Prime will still owe the company $163,260, according to the Bangor Daily News. U.S. Bankruptcy Judge Louis Kornreich also approved the company’s proposal to use a $4 million line of credit from Porter Capital Corp., which will be used for payroll and other capital operating costs.
Another hearing related to Prime Tanning’s bankruptcy case is scheduled for Dec. 8 in U.S. Bankruptcy Court in Bangor.
Go to the article from the Bangor Daily News >>
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