FoxMeyer restrictive credit terms by suppliers drive wholesaler to Chapter 11.
This article was originally published in The Tan Sheet
FOXMEYER SUPPLIERS RESTRICTIVE CREDIT TERMS DRIVE FIRM TO CHAPTER 11 bankruptcy protection to continue operating, the Dallas-based company said Aug. 27. "As we explained in several meetings with a number of our suppliers, we believe that we would have been able to operate successfully outside of Chapter 11 with the continuation of normal trade terms," FoxMeyer said. "Some suppliers, however, apparently preferred the certainty of a Chapter 11, where they knew that as post-petition suppliers they would receive priority status by the court for any new goods that were purchased."
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