Clinton Engines Co. Bankruptcy

HOFFINGER, MCDONALD, THINNES

Posted By: Ken Wright (email)
Date: 11/17/2010 at 21:44:59

The Telegraph-Herald, Dubuque, Iowa, January 8, 1967

SUBMIT CLINTON ENGINES PLAN; ‘BRIGHT’ FUTURE SEEN

A plan that would give unsecured creditors of Clinton Engines Co., of Maquoketa, Iowa, 30 cents on the dollar over a 6 ½ year period was submitted Friday in U. S. District Court in Dubuque.
Lomart Perfected Devices, Inc., of New York City, was granted permission to re-open the plant and company officials expect it to be operating “full swing” within a couple of weeks. The plant had been closed since last October 7 and re-opened Tuesday.
Lomart President Martin Hoffinger said Friday that prospects for the plant to again become profit-bearing are “bright.” He said “we are in the process of building up sales again. They fell off somewhat during the uncertain shut down.”
The new management’s plan calls for five percent of all unsecured debts to be paid February 24, the day of the confirmation hearing when the court, creditors’ committee and company officials are expected to agree on the plan submitted Friday.
Two percent of the debts will be paid twelve months after the hearing, and two per cent every six months thereafter, except the two final payments which will be 2 ½ per cent.
The arrangement plan also restricts all financial activities of the company to the approval of the creditors’ committee. James Talcott, Inc., of Chicago, Ill., Clinton Engine’s secured creditor, has reportedly approved the plan for arrangement. Talcott will, however receive 100 per cent of the money owed to it.
Officials of Clinton Engines filed its petition for arrangement under Chapter 11 of the Bankruptcy Law the same day the plant closed. About 800 workers were turned away without their last two weeks’ earnings. The company once employed 1, 200 persons. The plan calls for back wages to be paid February 24.
Don McDonald, receiver for the company, reported Friday that about $71,000 is available in company funds that have come from accounts receivable and an arrangement with Deere and Company of Moline, Ill., which has been operating the foundry division of the plant. McDonald filed a final receiver’s report with the court December 29th, showing a balance of $40,716 in company funds. He was ordered to file a supplement to that report on February 24th when the court is expected to appoint a disburser for the funds.
Bankruptcy Referee William Thinnes also ordered that all applications for fees, allowances and expenses incurred by the hearings held in Dubuque be on file by February 3rd. Application to confirm the plan must be on file by February 13th, Thinnes said.