Evening star., 1953-05-10
Court Acts 10 Avert
Bankruptcy Of ~
And Appliance Firm

Youngdahl yesterday issued an
order on behalf of Phillips Tele-
vision and Appliance Co. enjoin-
ing anyone from interfering with
its normal business operations
until all creditors have a chance
to pass on the company's plan
for paying off a total indebted
ness of $686,126.
Through Attorneys Samuel M.
Greenbaun and David Hornstein,
the company had filed a petition
in United States District Court
for the District Of Columbia
earlier in the day under Chapter
II of the Bankruptcy Act as a
means of avoiding bankruptcy
and facilitating payment of all
debts. Two of its 112 creditors
had fled debt suits during the
week.
The court order is binding
until entry of the final decree
in the proceedings. Meanwhile,
Phillips business will continue as
usual under the courts super
vision. John A. Bresnahan,
Washington attorney, was ap-
pointed referee and the company
was given 10 days in which to
file schedule of debts and state
ment of affairs.
Letters Sent to Creditors.
The company represented to
the court that it's volume of
business for the next two months
should be sufficient for it to
operate on a profit Of nearly
$4,000 a month, plus collections
of $4,000 to $4,000 monthly
from accounts receivable.
Letters are being sent out to
all 112 creditors for their accep-
tance or rejection of the firms
proposed plan for payment. Ac-
ceptance by a majority, it was
said, would be binding on all. A
creditors meeting will be held in
the next two or three weeks.
The company had voluntarily
called meeting more than a
month ago, which the 18 largest
creditors, representing major
ity of the Indebtedness, had at
tended. At another meeting, Is
of the 18 attended and expressed
willingness, Mr.. Hornstein ex-
planned, to go along with the
company's plan. The two un-
interested absentees, who later
filed suit, were the Parks Radio
Co. Of New York, which claims
$1,000: and the Kauffmann-
Washington Co. of this city, with
q claim of $15,577.
Volume Declined Sharply.
The two largest creditors to
which Phillips owes more than
100000 each, are the Halli-
CRATER Co. of Chicago and the
Greber Co. of Baltimore. They
have agreed to the company's
payment plan. Mr.. Hornstein
said the 18 largest creditors have
claims of $650,000 against the
total of $686,125 involved.
Phillips financial difficulties
began at the start Of the year.
The firm had been doing
monthly business in excess OF
$60O,000 and earning substantial
profits, counsel explained. Volume
began declining until now 1t is
about one-half normal. AS
result it had a greater inventory
than was required, assets being
frozen.
The two officers Of the COM
pany had offered to take cuts of
$4,000 in their salaries but Judge
Youngdahl said the court will
Ak salaries by a later order.
Payment Plan Outlined.
Philip Filderman is president.
at salary of $28. 500; and Myer
A. Filderman is vice president
and treasurer at salary OF
$23,60O. Offices are at 937 F
street NV.
Under the payment plan pro-
posed to the creditors all debts
occurring after $50 am. yes
terday would constitute prior
claims against all assets and
must be paid before any pay
ments can be made upon the
present unsecured Indebtedness.
The plan furthe. provides that
all debts accrued since May l
and all debts Of 500 or less.
regardless of when accrued, are
to be paid in cash on conf1rma-
ton of the plan. Debts over $100
or less than $500 accrued prior
to May /, will be paid one sixth
In cash and one-sixth monthly
thereafter. Debts over $500,
accrued prior to May /. will be
paid in amounts of 5 per cent
cash and 5 per cent each month
fhoro ffar