Carthage Specialty Paper Seeks Permission To Borrow Money, Re-OpenPosted: Updated:
We should know later this week whether the operators of Carthage Specialty Paper will get the money they need to re-open the mill.
Lawyers for Carthage Specialty Paper filed legal papers this week, seeking permission to borrow up to $1.5 million from "Amerisource Funding Inc.," a company which describes itself as "the market leader in providing working capital and accounts receivable management solutions to small and middle market businesses..."
U.S. Bankruptcy Court judge Margaret Cangilos-Ruiz must approve the borrowing. In addition, Amerisource has to agree to loan the money.
During a brief federal court hearing in Syracuse Tuesday, a lawyer for Carthage Specialty Paper, Stephen Donato, said the money will let the West Carthage plant go from "warm idle" to restarting. Donato told 7 News not all of the $1.5 million may be needed.
Carthage Specialty Paper filed for bankruptcy at the end of February - the plant is not operating, though company officials have said they plan to restart operations Sunday. 78 people are employed there.
"The Debtors have an immediate need to obtain financing to permit, among other things, the orderly continuation of the operation of their businesses.., " the lawyers wrote in this week's court papers.
In its bankruptcy papers, Carthage Specialty Paper said it has $14 million in assets, and about $31 million in debts.
Lawyers for Carthage Specialty Paper and the groups it owes money to will be back in bankruptcy court Thursday. The judge is expected to decide then whether to let the company borrow the money.
All this is merely the preliminaries; once the plant is running again, the larger question of who should own and operate it permanently still has to be settled.
- reported by Scott Atkinson & Jeff Cole