Teters executed a general assignment for the benefit of creditors pursuant to Missouri common law, in favor of DSI Assignments, LLC. Teters owed Bank of America approximately $800,000 on its revolving line of credit, which was secured by a lien on all of Teters assets. Bloom Finance Company, LLC also has a lien on all of Teters’ assets, to secure more than $31 million owed by Teters.
The assignee negotiated a sale of Teters’ inventory in the fall of 2018 for approximately $900,000 and with the collection of accounts receivable, Bank of America’s debt was paid in full. The assignee commissioned an auction of the company’s equipment with the proceeds applied against Bloom Financial’s secured debt.
Teters had an employee benefit plan that the Pension Benefit Guaranty Corporation (“PBGC”) asserted was underfunded. The assignee participated in negotiations with the PBGC and the Teters’ equity holders so that there would be no “control group” liability asserted against equity holders by the PBGC. A settlement of the PBGC’s claim was reached in March 2020.