Kimesha Lake, NY – It appears that either Leisure Time Spring Water Co. will be sold this month, or it will close and its assets will be sold off.
Bankruptcy Judge Cecilia Morris on Friday ordered the company, which is owned by A.T. Reynolds & Sons Inc., to sell “substantially all its assets.” The judge ordered a hearing and auction on March 27, at which time a buyer could emerge.
The longtime Kiamesha Lake business filed for Chapter 11 protection in the U.S. Bankruptcy Court in Poughkeepsie on Dec. 5 and announced intentions to reorganize, while owing scores of creditors.
The largest creditor, Wells Fargo, citing Leisure Time’s deteriorating situation, recently asked the judge to convert the case from Chapter 11 to a Chapter 7 proceeding, meaning the business would likely close and the assets be sold.
“Despite cost-cutting attempts, the debtor continues to bleed substantially, while its sales continue to fall,” attorneys for Wells Fargo wrote. “There has been no indication that this trend is capable of reversal.”
According to papers filed by the company in December, the plant on Route 42 is valued at $2.3 million and its equipment and machinery at $1.8 million. The company listed $5.3 million in assets and $3.7 million in liabilities. It produced gross income of $6 million in 2007 and $5.8 million in 2006.
In 2004, Leisure Time employed about 80 people in the water division.
The judge declined to rule on the request to convert the case to Chapter 7 until the March 27 hearing and auction.
Attorneys for the bank said Leisure Time is continuing to lose money during its reorganization and is not paying administrative expenses, such as workers compensation, medical and life insurance and payroll taxes, among other expenses.
It has also not paid property taxes or legal fees to the Wells Fargo attorneys.
Calls to Leisure Time were not returned on Tuesday.
Jeffrey Wurst, an attorney for Wells Fargo, said he’s cautiously optimistic a buyer will emerge that might keep the business open.
“The company has been in dire straits,” he said.
“This is the tragedy of bankruptcy. We have all tried very hard to keep this company alive.”
(Source: Times Herald Record)
Join the official YWN WhatsApp status
4 Responses
Oh no so no more water coolers this summer what are we going to do with out them
Great now a week before pasch I might have to look for a new job if no one buys the plant. And if they do I hope they give me the time off that Bruce always gives me for yomim tovim. What I don’t understand is how a chartable person like Bruce has to suffer so much hard ship In this economy.
dont worry about water service in the mountains there is a frum company called TO LIFE WATER that distributes ARTIN natural spring water to all the camps and colonies. they have been doing it for years and we use them .
hey asher hang in there