What Does The Future Hold For Hines?
Black Diamond Capital Management, which already holds a substantial portion of Hines Nurseries' debt, submitted the only bid to purchase Hines in federal bankruptcy court.
According to the North County Times (Calif.), the only bid submitted to purchase Hines Nurseries in federal bankruptcy court over the last few weeks was from Black Diamond Capital Management, which already holds a substantial portion of Hines' debt. Bank of America holds a substantial portion of Hines' debt, as well.
The North County Times indicates it could not reach Black Diamond earlier this week for a comment on its approach to Hines. Trey Pitsenberger, however, wrote earlier this week about Black Diamond's bid for Hines on his blog, The Blogging Nurseryman. Pitsenberger received a comment from a reader who expressed the following sentiment:
"My personal take is Black Diamond couldn't be happier. From what I've heard, they sucked the place dry before the auction by laying off salesmen, not canning new material, etc. They made a killing off that and now they got the company back for pennies on the dollars. [Thirty-one million dollars] is not pennies but if I remember correctly at the time of filing there were about $130 million [in] assets and $50 million in liabilities. They essentially bought an $80 million company for $30 (million). My guess is they (will) continue selling off plants and sell the company off in pieces to continue maximizing profits. Which essentially means Hines is done. Again, I am just speculating, but does anyone think Black Diamond is in this for the long haul?
In the bankruptcy court filings, North County Times reports Bank of America objected to Black Diamond's request for an additional $10 million in debtor-in-possession financing to continue operations until the deal can be closed April 14. The legal documents also show Black Diamond is seeking assurances from Home Depot and Walmart to continue buying plants from Hines.
Stay tuned to GreenhouseGrower.com for more information as the Hines Nurseries story develops. In the meantime, tell us what you think of Black Diamond's strategy and the future of Hines in the comments section below.
Comments (6)
kate field (Thu Dec 22 20:34:56 2011)
Just the name 'Black Diamond' sounds like trouble. Of course they will try to maximize profits, thats all business does these days. Change or die. Once you get in this belly up position the vultures eat you
(Thu Dec 22 04:28:26 2011)
And I know the're going to remove my comments because it is the true!!!
(Thu Dec 22 04:28:25 2011)
Karen Suslow (general manager in winters hines) has her favorite people. She should not have that position, she must quit NOW!!
(Thu Dec 22 04:28:24 2011)
I think Black Diamond has played games with this company as well as others in the nursery industry long enough. Maybe it's time for someone like '60 Minutes' to do an investigative expose' on the corruption within the entire bankruptcy system, and these two companies in particular, along with bringing to light just exactly who are the faces behind Black Diamond.It's also interesting to follow those Hine's management individuals bouncing between the various large nursery operations they've been involved and the damage left in their wake.I find it disgusting that these 'upper management' types can play the kind of games they've been playing with people's lives, remain employable and still sleep at night.
(Thu Dec 22 04:28:23 2011)
Not happy how it turned out. It just should have been sold at a regular auction. it is time to die.
(Thu Dec 22 04:28:22 2011)
Awesome hope Hines dies!!! I got laid off for termination of position....now I will be on unemployment until I find another job. Were I live jobs are hard to come by!!
(Tue Sep 27 03:45:05 2011)
And I know the're going to remove my comments because it is the true!!!
(Tue Sep 27 03:45:04 2011)
Karen Suslow (general manager in winters hines) has her favorite people. She should not have that position, she must quit NOW!!
(Tue Sep 27 03:45:04 2011)
I think Black Diamond has played games with this company as well as others in the nursery industry long enough. Maybe it's time for someone like '60 Minutes' to do an investigative expose' on the corruption within the entire bankruptcy system, and these two companies in particular, along with bringing to light just exactly who are the faces behind Black Diamond.It's also interesting to follow those Hine's management individuals bouncing between the various large nursery operations they've been involved and the damage left in their wake.I find it disgusting that these 'upper management' types can play the kind of games they've been playing with people's lives, remain employable and still sleep at night.
(Tue Sep 27 03:45:04 2011)
Not happy how it turned out. It just should have been sold at a regular auction. it is time to die.
(Tue Sep 27 03:45:04 2011)
Awesome hope Hines dies!!! I got laid off for termination of position....now I will be on unemployment until I find another job. Were I live jobs are hard to come by!!
