Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, September 13, 1994 TAG: 9409140062
SECTION: BUSINESS PAGE: C-7 EDITION: METRO
SOURCE: SANDRA BROWN KELLY STAFF WRITER
DATELINE: LENGTH: Medium
Western District Judge Ross Krum ordered the company to continue a month-by-month accounting to the court, however.
BS&T operates stores near the Virginia Tech campus in Blacksburg and on the Roanoke City Market. It has been allowed to use cash from current sales for expenses since it filed for Chapter 11 protection from creditors in April.
That's despite objections from its largest creditor, NationsBank Corp. BS&T owes the bank about $395,000 and is in arrears on payments.
Lawyers for NationsBank have argued that use of income to pay expenses, including the purchase of new inventory, instead of applying the money to its bank debt is merely postponing the inevitable death of the stores.
But BS&T owner Richard Walters repeatedly has told the court that he cannot stay open unless he can use income to pay current expenses.
Walters previously had said he hoped to get additional investors to buoy the business. He apparently no longer expects to attract more capital, however.
"We don't anticipate a white knight coming in," Tom Dickenson, attorney for BS&T, told the court.
Beginning this month, BS&T agreed to increase its monthly payments to NationsBank from $3,200 to $5,250.
In August, BS&T had sales of $88,021, more than $12,000 above July sales, the company reported.
Expenses also were up, because the company is trying to build up its inventory, Dickenson said. Thus, August's earnings of $4,848 actually were about the same as July's because of the increase in expenses.
by CNB