Court orders Furniture Brands to set up utility deposits
As noted in today’s Daily Journal and first reported yesterday in the Biz Buzz blog, several utility providers are owed hundreds of thousands of dollars by Furniture Brands International, and it’s subsidiary, Lane Furniture Industries.
FBI filed for Chapter 11 bankruptcy protection last month, and in doing so also filed a motion to prevent utility providers from altering or shutting off services.
The bankruptcy court of Delaware, where the motion was filed, granted the motion today. And in doing so, it did as several utilities asked: Furniture Brands must set up separate deposit accounts, to be held in escrow, with money to cover two weeks’ worth of service. Here’s how much must be set aside Northeast Mississippi providers:
- Tombigbee Electric Power Association: $200,000
- Okolona Electric: $31,000
- City of Tupelo Water & Light: $2,700
- Lee County (water and sewage): $2,500
The court ordered Furniture Brands to keep a minimum of $990,000 in a separate Utility Deposit Account to help pay for utility expenses.