Carthage Specialty Paperboard Creditor List Is 250 LongPosted: Updated:
There are 250 companies and people in line to collect money from Carthage Specialty Paperboard as it goes through bankruptcy and it's likely these unsecured creditors won't get much of what they are owed, if anything.
Bankruptcy papers show Carthage Specialty Paperboard owes $2.9 million to the top 20 companies on its list of unsecured creditors.
One of those debts is $77,000 to Excellus Health for insurance premiums, which has the Steelworkers union asking if its members currently have health insurance.
Mill management tells 7 News workers are currently covered for health insurance. Union officials have that same understanding.
It's a red flag because when Carthage's sister company, Climax Packaging, abruptly closed in April of 2016, workers were surprised to learn their health coverage lapsed.
As the company enters bankruptcy, 3 top mangers at the mill are ready to buy it back, minus much of the $31 million in debt the company has, and keep it running.
Eighty people work at the West Carthage plant.
Key Bank, one of the top secured creditors, is owed $10 million and forced management to put the mill up for sale late last year.
The mill had a buyer earlier this year, but management says liens were put on the mill's property by a government-linked company that watches over the workers' pension plan. When that happened, Carthage mill officials say the buyer backed out and they had no other choice but to file for bankruptcy.
The mill hopes as it moves through bankruptcy court, it'll keep running. Employees could be called back to work March 11 or 18.