Sullivan
Microsoft has discontinued support for Internet Explorer. To access the Sullivan website, please install a modern browser like Microsoft Edge or Google Chrome.

Amy Zuccarello was quoted in the article "As Paint Brand Kelly-Moore Ends Operations, Competitors Try to Swoop In," published by ModernRetail on January 23, 2024.

The article discusses the collapse of the Kelly-Moore company, a California-based paint supplier that ceased operations this week amid multi-million dollar settlements on asbestos-related legal claims.

Amy indicates that in situations like this, ending operations can be preferable to filing for bankruptcy. “They would need a lender or investor to come in and put some money into the company as a DIP loan or some other kind of additional investment to keep them afloat in Chapter 11,” Amy said.

In a Chapter 11 filing, the company also would have had a litany of creditors to address that were likely beyond its capability. Outstanding tax liabilities get “pretty favorable treatment," Amy said, meaning those liabilities could be addressed before other claims. “You can’t walk away from unpaid taxes.”