Frank Parsons to Reorganize Under Chapter 11, Secures $5 Million Debtor-in-Possession Financing
HANOVER, Md., Jan. 14, 2011 /PRNewswire/ -- Frank Parsons, Inc., announced today that on January 6, 2011, it filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the State of Maryland.
Marc Weinsweig, the company's restructuring advisor, said Frank Parsons is working very closely with its employees, vendors, and partners, and expects no disruption in products, services, or support. "From the standpoint of Frank Parsons's customers, it will be business as usual," Mr. Weinsweig added. The company also announced that it has secured $5 million of debtor-in-possession financing from Wells Fargo Bank to help support its reorganization plans and to strengthen its business.
"The Frank Parsons brand remains strong, as does our commitment to our customers, employees, and strategic business partners," said J. Michael Lane, Frank Parsons's CEO. "The lifting of our heavy debt load has reenergized our employee-owners and will help us emerge a much stronger and more successful business."
The company has retained Cole, Schotz, Meisel, Forman & Leonard as bankruptcy counsel; Weinsweig Advisors LLC as a restructuring advisor; and SSG Capital as an investment banker to explore strategic options.
Frank Parsons, Inc., is the largest employee-owned, business products, technology, and office supplies company in the United States, offering more than 180,000 products from companies such as Avery, Fujifilm, Hewlett Packard, IBM, Sony, Xerox, Xiotech, and more. Frank Parsons is an approved contractor on the GSA Schedule and an authorized AbilityOne Distributor. The company holds several environmental certifications, including FSC, SFI, and PEFC. For more information, please visit www.frankparsons.com .
SOURCE Frank Parsons, Inc.
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