Replacement-window distributor ThermoView Industries Inc. is relying heavily on a financial-crisis management firm as it seeks to absolve $25 million in debt.
But suppliers are not in danger, according to Jim TerBeest, ThermoView's chief financial officer. The Louisville, Ky.-based company received a default notice Jan. 5 from PNC Bank.
With a $15 million line of credit through PNC and a $10 million loan through GE Capital, PNC was set to begin default action Jan. 22 if satisfactory arrangements were not made by Jan. 19.
"I don't think [ThermoView suppliers] are having major problems," he said in a Jan. 18 telephone interview. "Our subsidiaries keep the payables current. We're current with our payment of vendors."
The company's profile suppliers include Great Lakes Windows Inc. of Toledo, Ohio; and Thermal Industries Inc. and Winchester Industries Inc., both of Pittsburgh.
ThermoView's stock has plummeted in the past year. Company stocks traded at 38 cents per share on Jan. 18. Last July, the stock traded for just under $4 per share. Just four months prior, it was around $10 per share.
"We have lost money because we're quite leveraged," TerBeest said.
"Our earnings performance has not been good because of the debt."