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Inside Diamond Glass

Several interesting points about how Diamond Glass works, along with the details of its bankruptcy, were revealed during the initial hearing in its filing for reorganization under Chapter 11 in the U.S. Bankruptcy Court of Delaware on April 2.

Some of these are:

  • At the time of its filing for bankruptcy, Diamond had $45 million of debt owed to Guggenheim Corporate LLC, its senior secured lender. In addition, the company had unsecured debt of $55 to 57 million, $45 million of which was owed to seven bondholders. The bonds were issued in 1998 and were due on April 1, 2008. The unsecured debt and secured debt totaled $102 to $105 million, according to testimony from pro hac vice (pending) counsel Mark Richman of Foley & Lardner (CLICK HERE for related story.)
  • The company had $186 million in sales in 2007, with $2 million in earnings before interest, taxes, depreciation and amortization, according to Diamond president Bill Cogswell's testimony. Cogswell notes that the company was $2 million profitable "pre-EBITDA."
  • Diamond Glass does not own any "real property that [it] operates," according to Cogswell. All of its facilities and vehicles are leased.
  • Diamond's average transaction price is $213, according to Cogswell. The company sets aside $220,000 annually for warranty claims, for an average of approximately 1,000 warranty claims per year.

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