RSK BLAMES CHAPTER 11 ON HAITI TRADE EMBARGO

Byline:

NEW YORK--RSK Industries Inc., an unbranded children's apparel manufacturer, has filed for Chapter 11 protection here, citing the "drastic" effects of the March 1994 U.S. trade embargo against Haiti.
In bankruptcy court papers, RSK, located at 3 West 35th St., said it manufactured most of its merchandise through sewing operations in Haiti, but was forced to relocate its facilities midstream due to the U.S. embargo, which "drastically impaired" its operations.
RSK, which plans to sell its assets to LTNY Inc. while in Chapter 11, lists $3.3 million in assets and $11.5 million in liabilities, including $10.5 million unsecured debt.
Andrew Sherman, of Parker, Chapin, Flattau & Klimpl, counsel to RSK, declined to reveal any details of the deal prior to making the proposal in court, a move expected shortly.
RSK's largest creditors include: Marcus Bros., owed $610,287; Ambassador Fabrics, $417,115; FHL Enterprises Inc., $350,000, and Heller Financial, $282,413.
The case is assigned to Bankruptcy Judge James Garrity.

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