Top Hines Creditors Revealed
A dozen leading industry suppliers may lose between $100,000 to more than half a million dollars, depending on how Hines Horticulture's bankruptcy reorganization goes.
Based in Irvine, Calif., Hines Horticulture filed for Chapter 11 bankruptcy protection on Aug. 20. The company is one of the nation's largest growing operations with seven facilities spanning 4,000 acres of outdoor and greenhouse production in Arizona, California, Texas and Oregon.
A 244-page document filed Sept. 19 in the U.S. Bankruptcy Court for the District of Delaware reveals Hines owes more than $192.6 million to unsecured creditors with nonpriority claims. Ahead of them to collect money are secured creditors, like banks, and all tax-collecting government agencies where Hines operates.
The top 12 claims from unsecured creditors who are also industry suppliers include:
- SunGro Horticulture - $550,557 (Hines used to own SunGro)
- Syngenta Seeds - $516,888
- Ball Seed - $445,807
- Conard-Pyle Co. - $208,026
- McGregor Plant Sales - $205,007
- Simplot Partners - $176,118
- ForemostCo Inc. - $167,865
- Western Farm Service - $158,352
- Wilbur-Ellis Co. - $146,263
- Abbott-IPCO - $145,280
- Magnolia Gardens Nursery - $140,800
- BWI Companies - $107,185
Together, the claims from these dozen companies represent nearly $3 million of the $192.6 million, so the debt is distributed widely to hundreds of companies. A hearing for the unsecured creditors is scheduled for Oct. 22.
Comments (22)
(Thu Dec 22 02:58:24 2011)
With much of the same management team involved--Hines will never come out of this bankruptcy. They are the same people who got them into this mess. Besides, most of the knowledgable staff who were doing the day to day work have all left. It will never fly!
(Thu Dec 22 02:58:23 2011)
Hines always discounted their invoices. (took prompt pay discounts within the allowed time). However, anyone who pays attention to the industry knew this thing was coming.
(Thu Dec 22 02:58:22 2011)
Hines also payed us within terms right up until the filing of Chapt. 11. We did have past due invoices but less 20 days past due. So, the operatives with who we worked were great! The management is another issue.
(Thu Dec 22 02:58:21 2011)
As one of the major creditors please know Hines was current in payments right up until the end - they were not past due
(Thu Dec 22 02:58:20 2011)
I hear they will be moving into the mortage business shortly. They seem to have the business down pat.
(Thu Dec 22 02:58:19 2011)
The Board of Directors should fire the entire management team and dismantle the company if they cannot come up with a business plan that will work.
(Thu Dec 22 02:58:18 2011)
Sure glad we put them on cash with order some time ago. Warning flags should go up when a customer "loyal" to your competition suddenly courts you as a new supplier.
(Thu Dec 22 02:58:18 2011)
The vendors were the ones who ALLOWED Hines to run up their balances.
(Thu Dec 22 02:58:16 2011)
This simply shows that in a tight credit market, they used their vendors as "bank". No interest payment, no security payments, no one looking over their shoulders.... Clever... Purchasing should be given a gold star for operating under such a burden! Management...well they got caught...OOPS!
(Thu Dec 22 02:58:15 2011)
Perhaps Hines can cash in on the Congressional bailout. Everyone else is. Those responsible for the Hines mess knew what they were doing and continued anyway. My plan for them: accountability, restitution and retribution.
(Thu Dec 22 02:58:14 2011)
The remaining debt is distributed widely not over hundreds, but thousands of companies. Just a simple calculation shows, that there must be at least 4,000 unsecured creditors. Divide 190 million by an average of say 45 thousand? This means that Hines must have been hopping from one supplier to the next until no suppliers were left, that were willing to deliver before any outstanding overdue invoices were paid. How could this get so out of hand? In my eyes the responsible people should be punished for this.
(Mon Sep 26 20:25:50 2011)
With much of the same management team involved--Hines will never come out of this bankruptcy. They are the same people who got them into this mess. Besides, most of the knowledgable staff who were doing the day to day work have all left. It will never fly!
(Mon Sep 26 20:25:50 2011)
Hines always discounted their invoices. (took prompt pay discounts within the allowed time). However, anyone who pays attention to the industry knew this thing was coming.
(Mon Sep 26 20:25:50 2011)
Hines also payed us within terms right up until the filing of Chapt. 11. We did have past due invoices but less 20 days past due. So, the operatives with who we worked were great! The management is another issue.
(Mon Sep 26 20:25:50 2011)
As one of the major creditors please know Hines was current in payments right up until the end - they were not past due
(Mon Sep 26 20:25:50 2011)
I hear they will be moving into the mortage business shortly. They seem to have the business down pat.
(Mon Sep 26 20:25:50 2011)
The Board of Directors should fire the entire management team and dismantle the company if they cannot come up with a business plan that will work.
(Mon Sep 26 20:25:49 2011)
Sure glad we put them on cash with order some time ago. Warning flags should go up when a customer "loyal" to your competition suddenly courts you as a new supplier.
(Mon Sep 26 20:25:49 2011)
The vendors were the ones who ALLOWED Hines to run up their balances.
(Mon Sep 26 20:25:49 2011)
This simply shows that in a tight credit market, they used their vendors as "bank". No interest payment, no security payments, no one looking over their shoulders.... Clever... Purchasing should be given a gold star for operating under such a burden! Management...well they got caught...OOPS!
(Mon Sep 26 20:25:49 2011)
Perhaps Hines can cash in on the Congressional bailout. Everyone else is. Those responsible for the Hines mess knew what they were doing and continued anyway. My plan for them: accountability, restitution and retribution.
(Mon Sep 26 20:25:49 2011)
The remaining debt is distributed widely not over hundreds, but thousands of companies. Just a simple calculation shows, that there must be at least 4,000 unsecured creditors. Divide 190 million by an average of say 45 thousand? This means that Hines must have been hopping from one supplier to the next until no suppliers were left, that were willing to deliver before any outstanding overdue invoices were paid. How could this get so out of hand? In my eyes the responsible people should be punished for this.
