However, the company experienced severe cash flow issues last year at the time it needed to procure raw materials for 2014, said Ed Cuccio, CEO of Resource One in St. Louis, the company whose claims put Yihe in receivership last fall.
and Resource One
are now supply chain and retail-service partners.
The cash flow problems were a "direct result of Chinese banks tightening and changing their credit terms.
It affected a whole array of different businesses internationally," said Cuccio
"Nobody was left hanging," said Cuccio
and Klein declined to divulge any further financial information.
explained, the entire "middle tier" of the company, including the Seattle office, was shut down.
"One of the biggest differences now is that we have private financing," added Cuccio
, who had just returned from China for a visit with Junbin Yang, whose Fuhuang Group
manufactures steel structures, among a variety of other businesses.
"It's reduced our [dependence] on support from the banks."
said the "textbook" and "orderly" receivership process was done to save the company and ensure that Yihe
could make shipments from November through Lent, the company's prime sales period.