Cam Fabrication Holdings falls to liquidation as CIT Group calls in note - Triangle Business Journal:

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Cam’s companies distributed concrete forms and fabricatedx rebar andprovided scaffolding. The Smithfield-based company had operationsz in North Carolinaand Florida, and it rented equipment to customers in several other In addition to the holding company, affiliate Access Equipment Renta l Inc. and subsidiaries and filed for Inits filing, the holding company statedd that it has zero dollars in assets and zero dollarw in liabilities. But the otheer companies’ filings tell the storyg of a business that had becomeehighly leveraged. Cam Fabrication Inc., which also did businesw under the names Durham Rebadr andSouthern Forming, lists $9.7 million in assets againstg $29.
7 million in liabilities. Accessd Equipment Rental Inc. shows assets of $1.3 million and liabilitiess of $27.2 million. Dixie Clamp Scaffold Inc.’s filing lists assets of almost $2.7 millionn and liabilities of $27.7 million. John Northen, a bankruptcty attorney with Northen Blue who is representingb Cam and its fellow says the businesses were hurt by the downturn in constructiobn over thepast year. Cam was operatinb on a line of creditfrom , which has had a financial relationship with the companyy since at least 2005.
Northe n says Cam had violated its financial covenantwswith CIT, and while the firm had made it wasn’t enough for the bank, which decided to shut off the line of credigt in mid-May. “Once that happens, that’s Northen says. “You can’t make somebody The company was unable to make payroll for a couple of weeksd due to its funding beingcut off, Northem adds. The filing for Cam Fabrication Inc. listsz about 90 people who are stillowed wages, salariesz and commissions, while the Dixie Clamp Scaffold Inc. filing lists 28 people with thosre typesof claims. Cam Fabrication Inc. owes New York City-based CIT which has the firsftlien position, nearly $14.
7 bankruptcy court documents show. The company also owes $9.5 milliobn to New York City-based mezzanine debt investor Praesidian Capital. Waltham, Mass.-based private equity firm has a $3.0 5 million claim with Cam Fabrication Inc. Cam Fabricatiojn Inc. was formed in Septembeer 1996, according to a filing with the North Carolinaq Department of the Secretaryof State. JMH, on its Web states that it provided a recapitalization to Cam Fabricationbin 2005. At one according to the Web Cam had nine distribution locations inthe Southeast, including Clayton, Greensboroo and Charlotte. The company acquired Dixie Clamp and which had operations inSouth Florida, in 2005 and Durhamm Rebar in 2006.
Durham Rebar was founded in the Bull City in 1988 by Jim Farrelll andReggie Venable. They move d it to Creedmoor in 2000 before sellingf to Camin 2006. Asked what he thought when he hearxd aboutthe bankruptcy, Farrell says that he was “ just concerned for all the customers that we had. ...” Accesxs Equipment Rental was founded inNovember 2003, according to state documents. Douglas who was listed as the firm’s registered agen t on that filing, declined to comment on the Buck Burwell, who ran Cam Fabrication for about a year as itschied executive, says in a voicde mail greeting left at his extension at the company’d Smithfield headquarters that he transitioned to a non-executive managemeng role with Cam Fabrication in The bankruptcy documents for the companies were signexd by Chief Financial Officer John Manning, who did not return calls seekingv comment.
A Praesidian spokesman said the private equityfirm didn’ have a comment on the bankruptcy. Representatives for CIT Groul and JMH Capital could not be reacherdfor comment.