The Maryland-based electrical contracting company, NATELCO Corporation filed for Chapter 11 bankruptcy protection in late June amid pressure from its largest lender to meet financial obligations and strengthen its balance sheet. The woman owned Maryland Company fulfills various electrical and construction projects in the Maryland, Washington, D.C., and Virginia Areas, and has been named one of the top 10 electrical contractors by the Washington Business Journal.
NATELCO Corporation Bankruptcy
NATELCO filed for its voluntary Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court in the District of Maryland with Bankruptcy Judge Wendelin I. Lipp overseeing the corporate restructuring. In NATELCO’s bankruptcy papers, the company reported $1,000,001 to $10M in both assets and liabilities. The company listed that there would be funds available for distribution to its estimated 50-99 unsecured creditors. The largest of which, Maurice Electrical Supply, being owed $2.29 million in unsecured debt claims. Rexel USA and Balley Lighting LLC also appeared on the list of largest creditors.
NATELCO’s Business Dealings
With high-profile projects for FedEx Field and even the White House, NATELCO appeared to be stable from the outside looking in, however, the electrical contractor was unable to meet debt obligations in May to the tune of $5.5 million via a revolving business loan from Sandy Spring Bank. While the company and its lender were able to agree to a forbearance agreement in May giving NATELCO more time to meet fix its cash-flow problems. Despite posting almost $34 million in revenue last year, the bank pulled financial support in June, forcing the company to seek Chapter 11 bankruptcy protection.
NATELCO claims that it has taken steps to fix its cash flow issues and that it continues to garner interest in multi-million dollar projects, but that the company has incurred operating losses and filed to generate sufficient revenue increase. The US Bankruptcy Court will conduct its final hearing on the bankruptcy case in late July 2018.