Harper Brush Works ruling expected from judge Friday

The fate of Harper Brush Works is now in the hands of the Honorable Judge Anita L. Shodeen following a court hearing Thursday and Friday in U.S. Bankruptcy Court, Southern District of Iowa in Des Moines.

Shodeen heard arguments on two motions last week. The first was a cash collateral motion. The second was a debtor-in-possession financing motion. Final written arguments on the motions must be filed by 11:59 p.m. Tuesday. A ruling is expected on Friday.

If granted, the cash collateral motion would allow Harper Brush to use cash generated from sales to continue running the company. Presently, there is a lien on those funds, and they cannot be used.

A favorable ruling on the debtor-in-possession financing ruling would allow Harper Brush to secure additional financing necessary to fill $1.7 million in orders. Currently, the orders cannot be filled because Harper Brush does not have the collateral necessary to purchase raw materials. If the judge grants the motions, it could continue to operate while they look for a buyer for the 112-year-old company. If the motion is denied, the company will most likely close its doors and be sold off in pieces.

Harper Brush provides employment to 70 people. One hundred thirty-seven companies currently provide supplies or services to Harper Brush. Forty-three of those companies are located in Fairfield or Jefferson County.