NEW YORK – A holding company for several commercial landscaping companies admits its finances could use some shrubbery work.
Omni Facility Services of South Plainfield, N.J., and its affiliates filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of New York in Manhattan on Thursday.
The company provides landscaping, architectural maintenance, mechanical, janitorial and food plant sanitation services.
Omni listed $80.3 million in assets and more than $100 in debts in its filing. According to CEO Michael Bielonko, the company posted earnings before interest, taxes, depreciation and amortization of about $5 million on $150 million in sales during 2003. It owes $43.8 million on a credit line provided by Heller Financial.
Affiliates listed in the bankruptcy filing are Omni Facility Services Detroit, Omni Facility Services Michigan, Omni Janitorial Services, Omni Landscaping Inc., Omni Service Management, OSS, Remco Maintenance Corp., Best Building Services, Jasam Enterprises, Maintech Corp., Maintenance Technologies Group, Morrell Group, and Spring Garden.
In an affidavit, Bielonko cited higher labor costs and other expenses, preparing for Remco contracts that did not materialize, softness in the economy and lost Maintech contracts as the reasons for filing. "The combination of these factors led to a deterioration of [Omni's] businesses leading to their inability to generate sufficient revenue from their operations to service their fixed obligations," Bielonko said. The company, he said, plans to sell some of its units to lighten its debt.
Omni, which employs about 2,600 people, has named TRG Inc., as its turnaround adviser.
James F. Wallack and Christine D. Lynch of Goulston & Storrs PC in Boston are debtor counsel.
Frank A. Oswald and Howard P. Magaliff from Togut, Segal & Segal LLP in New York are local counsel.
Monday, June 14, 2004