Dive Brief:
- Not paying attention to the details of change orders on a large project that Lamar Construction had in Colorado led to the Michigan company's financial downfall, President and CEO Carl Blauwkamp told creditors.
- Lamar closed down suddenly July 10, filing for bankruptcy and idling 280 employees after Fifth Third Bank pulled Lamar's line of credit.
- Some of the debts Lamar had, Blauwkamp said, were to partnerships that involved him and Lamar co-owner George Holmes, and they have both filed personal bankruptcy petitions.
Dive Insight:
The picture painted for the creditors and their lawyers was of two men who borrowed $1.8 million to pay $2.4 million for the company in 2007. Lamar was paying the interest on loans they got from friends for the purchase, the CEO said.
