Whitehall Jewelers Inc. is facing a financial crunch as is cited by its failure to fulfill its payments. Keeping in mind the time constraint to make payments by June 21, the jeweller may opt for protection under the Federal Bankruptcy Code, according to a filing with the US Securities and Exchange Commission (SEC). It received a default notice from Fabrikant Receivables LLC for a $3.06 million promissory note and approximately $1.56 million worth of unsecured trade debt. Similarly, it received a notice from Rosy Blue for a bad debt of $2.07 million promissory note. Whitehall has 10 days to clear their dues, after which the two companies can declare the notes “due and payable upon demand.” Whitehall is also facing a default of its senior credit agreement with La Salle Bank of $64.5 million outstanding, and its loan credit agreement with PWJ Lending LLC worth $40 million outstanding. Its trade debts amount to $13.5 million as of June 13, 2008. The outstanding payments are making the vendors cautious, who may demand additional payment assurances or accelerated payment terms before giving out merchandise on a consignment basis. %% The company's cash on hand and current and anticipated cash flow from operations is not enough to allow the current borrowing availability under the senior credit agreement to suffice the working capital and capital expenditure needs beyond end-June 2008. Hence the company needs additional financing. Whitehall recently acquired 78 stores from Friedman's and Crescent Jewelers, with $14.3 million and now operates 375 stores.