One of the nation's largest commercial masonry companies filed for Chapter 11 bankruptcy protection to reorganize its debt, including an estimated $5.5 million penalty claimed by its former pension plan, the Tennessean reported today. Nashville-based WASCO Inc. and subsidiary Lovell's Masonry Inc. estimated total assets at roughly $1 million and total liabilities at $9 million. The bankruptcy filing stemmed from WASCO's decision four years ago not to renew its union contract with the Bricklayers & Allied Craftworkers Local Union #5 of Tennessee, which had represented some of the company's employees. That resulted in a withdrawal penalty levied by the Bricklayers & Trowel Trades International Pension Fund. In connection with the chapter 11 filing, WASCO is seeking court approval for a $2.5 million line of credit it secured from Kingston Capital to fund operations during the proceedings. Bankruptcy Judge Randal S. Mashburn is expected to consider that motion today.
