Managers Look To Make Offer On Carthage Specialty PaperboardPosted: Updated:
At least three members of Carthage Specialty Paperboard's upper management are looking to make an offer on the mill.
They'll have to bid against other interested companies, but they say discussions with the primary lender, Key Bank, have gone well.
"Our hope long term is that we have the change of control and the ownership of the mill," said Michael Lambert, Carthage Specialty Paperboard spokesperson.
In the meantime, the company has furloughed its employees for at least a week as it tries to pool money to keep operating.
It plans to bring workers back on either March 11 or 18.
As this goes on, management is looking on the bright side and says customers are sticking by them.
"I have some of our largest customers calling me yesterday and today saying, 'we're sending you more orders, we're behind you 100 percent,'" said Lambert.
Lambert elaborated on how the company got to this point. He says when improvements to the company's paper machine did not meet expectations in 2014, the company had had also begun taking on a large amount of debt from Climax Packaging in Lowville.
The two were then owned by the same group.
Improvements were supposed to offset the added debt, but they didn't.
As for the roughly 200 vendors that Carthage Specialty Paper owes money to, whether or not they'll get any of that money back is up in the air.
Lambert says its debtors are still being supportive of the mill.
"This was not something new for them, we've had this cash constraint for quite some time now. So it's a bitter pill to swallow, but again, what we've always said is we have to follow the process and the courts to determine what the outcome is," he said.
Before all this, Carthage Specialty Paper expected to have a solid year; its spokesperson says it will not meet projections
and next year's won't be as aggressive.