This bankruptcy started under a terrible set of circumstances, and the strain is carrying over into the bankruptcy. Prior to filing, DESA sought to have a ‘heart-to-heart’ talk with its lead lender. The lender responded by sweeping its cash collateral, refusing to lend additional monies, and DESA was left with its one remaining option – a Delaware bankruptcy, with practically no operating cash.
Even with the protections afforded by bankruptcy, the situation looks bleak and very uncertain.