A’Hearn Plumbing & Heating, a 41-year-old Hiawatha contractor that filed for bankruptcy protection last month, now says it faces closure.
The company asked a judge Tuesday to dismiss the bankruptcy case it filed Aug. 28. The motion said A’Hearn’s financial condition has worsened to the point that it is now being forced to consider ceasing operations.
Brian A’Hearn of the family-owned business told The Gazette last month that the company’s decision to file bankruptcy was partly caused by the recession and partly by the cool summer, which reduced the amount of air conditioning work the company performed.
Among the issues that have arisen since then are creditors threatening to place liens on projects. The company said such liens will have a “devastating impact” on its prospects for reorganization.
A’Hearn also said it is working to satisfy the debts it owes to Farmers State Bank of Marion, but now believes the bank will have an unsecured deficiency claim of more than $500,000.
Dismissing the bankruptcy could also help with a prospect to work with a large contracting company that has expressed an interest in stepping in to work on ongoing projects.
Only an immediate dismissal can preserve the assets for the bank, keep most of the company’s 60 employees working on pending jobs sites and minimize the impact on bonded public and private works projects, said a motion filed by attorney Donald Newman for A’Hearn.