Eight months after filing for Chapter 11 bankruptcy protection, Springfield-based G2 Material Handling Inc. and subsidiary Southwest Stainless Inc. received approval of its reorganization plan, and company officials now are in the process of enacting it.
Both G2 and SSI filed for Chapter 11 reorganization in early March in the U.S. Bankruptcy Court for the Western District of Missouri. According to court documents, G2 and SSI's combined assets total $661,308, while filed secured claims are roughly $1.02 million. G2 was formed in 2008 to purchase the stock and assets of SSI for $1 million.
On Nov. 23, the court approved an amended Chapter 11 reorganization plan that calls for G2 and SSI to be consolidated, with G2 as the surviving entity. As such, creditors of both companies would be paid through G2, which was originally organized to serve as the sales arm of the business; SSI manufactures custom piping and fabricated metal equipment.
Springfield attorney Raymond Plaster, who represented the debtors, said the plan took effect in December, and payments to secured creditors will commence in January. Among the creditors is OakStar Bank, which is scheduled to be paid $949,045 over 25 years at a fixed interest rate of 5.375 percent. A $300,000 note to primary SSI shareholder Russ Lombard is in default with OakStar Bank, according to bankruptcy records.
The largest creditors appear in the SSI filing, with the top three being Central States Industrial, $132,472; St. Louis-based Metals USA, $72,873; and St. Joseph-based VanAm Tool, $61,509.
According to the revised reorganization plan, G2 has posted profits in five of the last seven months through September. Net income peaked in May at $208,549, while the company recorded a net loss of $60,611 in September.
Ryan Gorrell, vice president and chief operating officer of G2, said the business is "going strong," but he was unavailable for further comment on the bankruptcy proceedings.
In separate instances, the company owners have filed for individual bankruptcy protection.
Geary Gorrell, president of the company, filed for Chapter 7 liquidation Dec. 22, with Donna Gorrell listed as the joint debtor. The Gorrells' son, Ryan Gorrell, filed for Chapter 7 bankruptcy on July 28, with Susan Gorrell listed as the joint debtor, according to court records.
Attorney Plaster said the individual bankruptcy filings are unrelated to the Chapter 11 reorganization.
G2 Material Handling, 820 N. West Bypass, manufactures equipment for companies in the pharmaceutical, food, dairy, chemical and industrial sectors. It also provides a variety of services, including trim work, handrails, backsplashes, vent hoods, ornamental work, stainless steel fire pits, barbecue grills and smokers.[[In-content Ad]]
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