Irving Tanning files for Chapter 11
Irving Tanning, one of the US’s largest tanning companies, last week filed for Chapter 11 bankruptcy protection under the strain of mounting cash flow and raw material supply problems.
Chapter 11 of the Bankruptcy Code is designed to provide companies with the ‘breathing space’ they need to reorganise through the restructuring of their debts, or new investment capital. As part of its reorganisation proposal, Irving Tanning has reached an agreement with its lenders, Fleet Bank and Peoples Heritage Bank, regarding continuing working capital financing. Though the company says no significant layoffs will result from the reorganisation, approximately 20 staff have already been made redundant as part of separate cost-cutting measure. Irving Tanning’s plant in Hartland, Maine, will remain in operation while the company reorganises.
