Spectrum Seeks Receiver for Schwebel's Liquidation After $5.3 Million Default
Updated
Updated · WFMJ · Jul 16
Spectrum Seeks Receiver for Schwebel's Liquidation After $5.3 Million Default
1 articles · Updated · WFMJ · Jul 16
Summary
Spectrum Commercial Finance asked a federal judge on Wednesday to urgently appoint turnaround consultant Jacen Dinoff as receiver to run Schwebel’s liquidation through Labor Day.
The emergency motion follows Spectrum’s claim that Schwebel’s defaulted on a $5,366,781 credit agreement despite a deadline extension; the lender is also seeking $3,761,977 plus interest and possible seizure of pledged collateral.
Jacen Dinoff, CEO of KCP Advisory Group, had already been working with Schwebel’s since March as chief restructuring adviser while the bakery explored a sale that has now fallen through.
Judge David Ruiz said Wednesday that talks with a potential buyer have ended and Schwebel’s is proceeding with a wind-down, while a separate Teamsters lawsuit alleges unpaid health, pension and leave obligations.
Schwebel’s had blamed inflation, production costs and weak sales for the shutdown, which is set to eliminate 673 jobs across 13 Ohio facilities, including 370 in Youngstown.