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Wednesday, February 23, 2000

Creditors seek
liquidation for
Maui Home Supply

By Peter Wagner


Creditors who succeeded last week in forcing MidPac Lumber Co. into involuntary bankruptcy have filed for similar action against an affiliated company, Maui Home Supply.

Forest Grove Lumber Co. of McMinnville, Ore., Premdor Inc. of Walkenton, Ind., and Whirlpool Corp., of Benton Harbor, Mich. on Jan. 31 filed a petition in U.S. Bankruptcy Court asking that Maui Home Supply be required to undergo a Chapter 7 bankruptcy.

The three parties are claiming a total of $1,883,887 in unpaid bills. If granted by the court, all property belonging to Maui Home would be controlled by the court.

The filing came about two weeks after Forest Grove, Premdor and Klupenger Lumber Co. of Portland, Ore., filed a similar involuntary bankruptcy action against MidPac seeking $1,119,983 in claims. MidPac, a longtime Hawaii building supply wholesaler, closed in November because of its debt problems.

MidPac, owned by CGBN Inc., and Maui Home Supply, owned by CG Investments Inc., are both headed by California businessman Kurt Glassman.

Glassman could not be reached.

Maui Home recently closed its two stores, in Lahaina and Kahului, after selling off merchandise in fire sales. Similar fire sales were held at MidPac Lumber last month before remaining property was sold at public auction on Jan. 19. Proceeds of the auction are being held by CIT Group/Business Credit Inc., a California lender claiming $2,352,733 outstanding on a $8 million loan. CIT in recent filings said the auction raised $742,970.

Creditors in the MidPac case claim the auction was illegal because it was held after the first petition was filed, on Jan. 18. Under bankruptcy law, the filing automatically put the company's property under control of the court, petitioners say.

Total claims against MidPac, including other creditors, exceed $4 million, court documents say.

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