
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, July 15, 1990                   TAG: 9007130794
SECTION: BUSINESS                    PAGE: B-2   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Short

BANKRUPTCIES

A Franklin County contractor, a Blacksburg painting company and a Pulaski lumber operation have asked for liquidation in U.S. Bankruptcy Court in Roanoke.

MT Corp. of Wirtz, trading as Baywood Construction and headed by Michael Tabor, reported debts of $289,430 and assets of $65,500. Vincent W. and Jill MacQueen of Blacksburg, operating Economy Painting and Green-N-Stuff, listed debts of $74,978 and assets of $12,663. A.M. Dawson Enterprises, doing business as New River Forest Products, reported debt of $358,118 and assets of $171,108.

Other petitions were filed by Compton Logging Corp. of Bluefield and Tri-State Motors Inc., doing business as W.L. Osborne Mobile Homes, Bristol. Compton, headed by Margaret R. Compton, filed for liquidation, listing debts of $1.4 million and assets of $237,404. Tri-State, headed by Dale Maiden, asked for reorganization, listing debts of $2.2 million and assets of $1.3 million. Vaught Septic Tank Service of Ripplemead filed for reorganization.

Under Chapter 7 of the U.S. Bankruptcy Code, a business liquidates, or sells it assets, and the proceeds are distributed among creditors. Chapter 11 gives a company protection from its creditors while it reorganizes under court supervision. Chapter 13, primarily for individuals, also provides for repayment under a court-approved wage-earner plan. Filing under the bankruptcy code doesn't necessarily mean a business has closed its doors.

by CNB