Weave Corp. to reopen
-- Home Textiles Today, 11/11/2009 3:20:00 PM
Hackensack, N.J. – The receiver in the Weave Corp. case hopes to have the weaving plant open and running by Nov. 16, HTT has learned.
The Meridian Group has been appointed as the receiver in the case of PNC Bank National Association of Pittsburgh vs Weave Corp. and Roger Berkley. The order by the United States District Court for the District of New Jersey appoints Meridian “to preserve and maximize the value of the borrower’s assets and to liquidate the same in an orderly manner for the benefit of the plaintiff,” according to court documents.
“The bank and Weave came to an impasse, and Weave stopped operating at the plant. Meridian had been involved in an advisory role, and we see a greater sales value if it continues operating,” said John Russell, a member of the Meridian Group.
Weave ceased activities late in October, according to a Nov. 6 email from Weave Corp. president and ceo Roger Berkley to members of the National Textiles Association (NTA), where he had served as a strong advocate for the American textiles industry.
Weave, according to court documents, is in default on notes and mortgage, and “turned over or offered to turn over, possession of the collateral to the plaintiff.” According to the court records, “the receiver shall have the power to manage, preserve and operate the assets.”
Meridian’s objective, according to Russell, is to keep the business running, both for the benefit of the employees and the company’s customers, especially in the decorative jobber channel. Many are concerned both about the lifespan of existing sample books and other programs as well as commitments for new programs.
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