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July 1: Bankruptcy Judge Grants Bison's Initial Ch. 11 Requests
June 30: Bison Cites Housing Slump, Credit Squeeze for Going Into Chapter 11
June 29: Bison Building Materials Files for Chapter 11

Bison Building Materials is forecasting it will accumulate a negative net cash flow through Halloween reaching $2.2 million as it seeks to reorganize and emerge from Chapter 11 bankruptcy, the Houston-based dealer revealed in court filings.

Those forecasts accompanied a bankruptcy judge's order Friday authorizing Bison to use the secured financing it had arranged to use during its time in Chapter 11 under federal protection from creditors. But U.S. Bankruptcy Judge Wesley W. Steen declined to set a date for a final hearing. That might not occur until this fall, as a meeting of Bison's creditors has been set for Sept. 8.

Bison, the 14th largest company on the 2009 ProSales 100, recorded a loss of $16.1 million in $214 million in revenue during the fiscal year ended last April 30. More than two-thirds of that loss came from an ill-fated expansion from Bison's Houston base into markets such as Phoenix, Las Vegas, and Denver. Costs related to the exiting from those markets--plus some that haven't stopped, such as rent due on land--contributed significantly to Bison's losses and its decision to enter Chapter 11.

Each week of August through October, Bison told the court, it expects to take in between $2 million and $3.2 million. Meanwhile, weekly total disbursements are expected to range between $2.4 million and $3.5 million. As a result, its weekly net cash flow will range from a positive $412,000 to a negative $858,000. By the week ended Oct. 30, it predicts, its cumulative net cash flow will total $2.2 million.

To get through this period, Bison has arranged for debtor in possession financing as well as a revolving credit facility from Wachovia Bank, its principal lender before going into Chapter 11.