Judge delays ruling in Harper bankruptcy case

It will be another week until a judge delivers her ruling on two motions heard recently in U.S. Bankruptcy Court, Southern District of Iowa in Des Moines. The ruling largely will determine the fate of Harper Brush Works Inc.

The 112-year-old broom and brush manufacturing company filed for Chapter 11 bankruptcy in May. Attorneys presented two motions in U.S. Bankruptcy Court July 12-13. The first was a cash collateral motion. The second was a debtor-in-possession financing motion.

Shodeen originally indicated she would deliver her ruling today. However, after final written arguments were received Tuesday, the judge met with attorneys on both sides of the case by phone Thursday, asking for clarification on information in the arguments. At that time, she told lawyers she wanted additional time to review the case before issuing her ruling.

?I don?t know what it means,? said Fairfield Economic Development executive director Tracy Vance. ?It?s hard to read the tea leaves.?

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.

Vance, Mayor Ed Malloy, FEDA president Lori Shaefer Weaton, and Representative Curt Hanson held a press conference July 10 in a unified show of support for the Harper Brush.

?We want to extend a helping hand to this icon,? Hanson said. ?It?s in our own best interest to keep it.?

?Every effort is being made to extend the life of the company,? Malloy said.

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.