Custom HBC Completes Financial Restructuring
Larry Wilhelm, CEO of Custom HBC Corporation, Waconia, Minn., announced today that the company had completed the initial phase of its voluntary financial restructuring plan.
As previously reported, Custom HBC initiated a voluntary financial restructuring effort with its unsecured trade creditors to reduce its overall trade debt and improve cash flow. This was a proactive approach taken by the company upon advice of its financial advisors to be in the best interest of the company and its creditors.
"I am pleased to report that an overwhelming majority of our trade creditors have now approved our restructuring plan, which means all trade creditors who voted are now bound by the plan," said Wilhelm. "The plan significantly reduces our trade debt and will greatly improve our cash flow going forward. Importantly, we have been able to retain all of our core vendors and suppliers during the restructuring process. The restructuring will allow the company to go forward with normal operations and purchase additional inventory, thereby allowing us to better service our customers."
"During the recent financial difficulties, Custom HBC maintained a 99.9 percent on-time shipping record on its extensive line of health and beauty care products and intends to continue doing so. Sales and order flow are showing improvement and the company is cautiously optimistic for the balance of the year," he said.
Custom HBC Corporation is a supplier of custom health and beauty care products to the promotional industry. It also owns Custom Chocolate LLC, a supplier of custom-molded and handcrafted chocolates and snack products to the promotional industry.
For more information, visit www.customhbc.com.