CHATTANOOGA, Tenn. (BRAIN) — Lynskey Performance Products owes FirstBank about $1.81 million on a term loan and a revolver loan, according to a filing made by the bank in the company's Chapter 11 bankruptcy case.
Lynskey, a titanium frame maker, filed for bankruptcy on April 30. The initial petition listed estimated assets at less than $50,000 and estimated liabilities between $1 million and $10 million. It listed a handful of unsecured debts to suppliers but did not file documents showing secured debt. The court gave Lynskey until May 28 to make a complete filing.
On May 7 Lynskey's attorney asked the court to approve use of the company's cash collateral for some purposes; a second filing asked for permission to use the cash for payment of critical vendors. FirstBank objected, noting its two secured loans made it the first-priority interest in Lynskey's "accounts, equipment, inventory, and all proceeds thereof."
At a hearing Tuesday the court approved Lynskey's request to pay critical suppliers, with some limitations. A hearing was scheduled for June 11 to take up FirstBank's objection. Lynskey's deadline for filing the remaining schedules and summaries of assets and liabilities remains May 28.
