Morin Brick files for bankruptcy
Morin Brick Company Inc. in Auburn said today it has filed for Chapter 11 bankruptcy.
Morin Brick's senior management said in a press release that the company's cash flow has been extremely strained due to the downturn in the construction market and the increased cost of production. Morin Brick, which has a manufacturing facility in Auburn and showrooms in Auburn and Brewer, is unable to pass these increased costs to its customers in the form of higher prices for its products because of market conditions, the release said.
Chapter 11 of the Bankruptcy Code is designed to provide companies with the time and opportunity to reorganize, including restructuring a company's debts or by obtaining new investment capital. Morin Brick has worked out an agreement with its lender, Bank of America, to continue to receive working capital during the Chapter 11 process. Morin Brick does not anticipate any layoffs as a result of its bankrutpcy filing.
Most Recent
Most Recent
Comments