The next 30 to 45 days are crucial to Smith Corona Corp’s ability to continue as a going concern, attorney Laura Jones told a hearing today before US bankruptcy Judge Helen Balick in Wilmington, Delaware. In response to a question of whether liquidation were one of the options being considered, Ms Jones told Reuters At this point the company is going to take advantage of a breathing spell and explore all its opportunities. At the hearing Smith Corona received court approval for an interim financing agreement that lasts until Monday with Chemical Banking Corp and BankAmerica Corp, while negotiations continue with the banks on possible debtor-in-possession financing. The 48% Hanson Plc-owned electronic typewriter company, which is bringing manufacturing back from the Far East to Mexico, has a draft agreement for up to $20m in debtor-in-possession financing with Foothill Group Inc affiliate Foothill Capital Corp, it hopes to arrange more favourable financing terms with the banks. Smith Corona’s pre-petition $15m of revolving credit with the banks is secured by substantially all its domestic US assets and properties, court papers say. The interim pact gives it use of up to $1.5m between now and a hearing on Monday.
