Girard Manufacturing, a wood office furniture store based in Canóvanas, has filed for Chapter 11 protection at the U.S. Bankruptcy Court, listing more than $3.8 million in debt, according to court records.
The company, established in 1984 and that employs about 70 people, told the court that it is “unable to meet its obligations as they mature” and “creditors are threatening suit and have threatened to undertake steps to obtain possession of the corporation’s assets.”
Among the company’s largest unsecured creditors are: the Economic Development Bank, with a credit line and loans totaling $322,257; CM Investments Inc., with $384,000 in rent arrears; Compatico, with $110,264 in supplies-related debt; and the Little Tower Industrial Park, with $175,818 in rent and reimbursement payments due.
“It is apparent that the continuation of the affairs of the corporation without the protection of the Bankruptcy Court could result in the corporation’s demise,” Girard’s board of directors told the Court in a resolution submitted along with the bankruptcy filing, submitted Aug. 24.
The U.S. Bankruptcy Court issued an order earlier this week setting a meeting for creditors on Sept. 29, and a status conference hearing on Oct. 31, according to the case docket.