Mexican Bank Sues Troubled Cal-State Lumber

Amid rumors that Cal-State Lumber Sales Inc. is up for sale or might declare bankruptcy and accusations that it is quickly selling off its assets or transferring them to a new company, a Mexican bank has filed suit in Superior Court against the Chula Vista (San Diego), Ca., company, its Mexican affitiates and its principals.

Banca Promex seeks repayment of a $5 million debt, alleging that CalState's Tijuana manufacturing arm, Industrializadora de Madera de Las Americas (IMASA), owes $81 million to Mexican banks. In addition, lumber wholesalers throughout the West have reported outstanding balances due from Cal-State Lumber totaling millions of dollars.

Reportedly the nation's seventh largest Hispanic-owned business, CalState Lumber has no relation to Cal State Forest Products, Orange, Ca.

Former Cal-State Lumber finance director Fred Birouty, now with competitor Smartrim, revealed the company is failing to service customers and unable to pay its bills or fill new orders, according to the San Diego Union-Tribune.

"We do owe some money," admitted new president Ricardo Acevedo, a member of the prominent Acevedo family that founded the companies. "We first sopped the moulding plant four months ago and have been completely shut down for six weeks. But we're in the process of restructuring our debt with the bank and anxious to get start€d again."

According to Acevedo, former president Manuel Acevedo and vice president Benjamin Acevedo were Cal-State's sole owners, but resigned about Oct. I and are now running recentlv-established Smartrim, Reno,

Nv. "They gave it (Cal-State) to us," said Ricardo. His father, Victor, is now vice president.

Banca Promex claims Cal-State has sold 10 U.S. properties in recent months, refinanced four others earlier in the year, and may have transferred some of its assets to Smartrim.

The bank said it could find just $63.000 in Cal-State's bank accounts despite 1993 sales of $168 million. On the other hand, it found $613,000 in Smartrim account balances even though the company has "insignifi- cant" sales.

On Oct. Z, a Superior Court judge issued a temporary protective order, prohibiting Cal-State and Acevedo family members from disposing of assets without court approval.

Ricardo Acevedo said he had no plans to file barikruptcy and no comment on the suit, which also names his father, brothers Benjarnin, Manuel and Victor, and sister Yolanda.

Benjamin's wife, Mary Alice, was a candidate for Consress in this month's elections.

FOR

DOMESTIC SAES CAL:

Jerry Long, Michael Parrella, Lynn Bethurum. Janet Parrella. Pete Ulloa, Bruce Keith, Matt Petersen.

FOR INTERNAI1ONA SAES CAL: Nestor Pimentel. Abel Flores.