Wed, Nov 25 2009
|
Sale of factory to Canadian firm a loss-loss for creditors NEO Plastics was 2001 ‘Best of the County,’ according to Growth Partnership By CARL E. FEATHER - Lifestyle Editor - cfeather@starbeacon.comStar Beacon Local tax abatement authorities also had high hopes for NEO and granted a 60 percent personal-property and 60 percent real-estate abatements for five years. In 1999, that amounted to nearly $17,000.
The abatement terms required NEO create 20 new jobs in its first year; subsequent reviews showed that the company achieved and often exceeded that goal. GP’s news release claims 19 jobs were saved. A notation on one of the review forms notes “$9 per hour.” A source familiar with the operation said the company did not provide health-care benefits to its employees. The company’s bankruptcy filing shows Dunne received a monthly salary of $8,000 and his mother, Charlotte, $1,280 monthly. C.J. Dunne, an officer, was paid $4,200 monthly. Dunne did not return the Star Beacon’s calls. The Ashtabula County Auditor’s Web site shows a delinquency of $47,135.82. Parker said all delinquent and current taxes will be paid from the proceeds. NEO also obtained a loan through the county’s revolving loan fund, the 503 Corporation, which was paid off as part of a refinancing package through a commercial lender. NEO Plastics eventually ended up with a loan from National City Bank, which was owed $1,484,096 plus interest, when the bankruptcy was filed in February 2007. Court records show that the reason for NEO’s difficulties was the loss of two major customers. These documents also show Growth Partnership was involved in helping the company as early as 2006, when National City Bank was seeking action on its judgment. A court document filed in that case states that “Attorney Stavole (representing NEO) reported that Joe Mayernick, of the Growth Partnership, has been working with investors that have some interest in investing in the Defendant and possibly taking out Plaintiff (National City).” RTS was NEO’s major customer and had its tooling on site. As such, RTS had a significant stake in continuing operations here and avoiding a possible loss of product supply resulting from a court-forced sale. According to the GP news release, RTS has been producing items in Austinburg for more than a month. GP went to bat for RTS by placing a display ad in the Star Beacon in February, advertising for a production manager to head up RTS’ anticipated Austinburg operation. GP’s news release states RTS has, with the acquisition of NEO, opened its first U.S. plant in Austinburg. However, according to the company Web site (rtsplastics.com), the company already owns a U.S. fabrication/distribution center in Kennesaw, Ga. Porter says the loss will hurt their small business. “It is money we will never see,” she says. “We’re not happy about it. Some of the other unsecured debtors and amounts included Amerada Hess, $46,542; CEI Illuminating, $14,113; Dominion East Ohio, $36,541; Moeller, $97,602; PolyOne, $69,750; Shealy Group, $38,596; and Wheeler (Stow), $20,553. “Nobody is going to get what is owned to them,” Porter says. “The new buyer claims no debt from them. They are just buying the business.” 
More from the Reality Check section
What it is, how it’s calculated Beyond wineries and covered bridges … |
Print this story
Post to del.icio.us
 |
 |
 |
 |
 |
|
 |
|
|
||||||||||
|
||||||||||
|
|
|
|
|
© 2009, Ashtabula Star Beacon
P.O. Box 2100, Ashtabula OH 44005-2100 (440) 998-2323, Send news tips and feedback 
|
Popular Business directory links - Ashtabula Apartments | Ashtabula Attorneys | Ashtabula Auto Dealers | Ashtabula Auto Parts | Ashtabula Auto Repair | Ashtabula Beauty Salons | Ashtabula Car Rental | Ashtabula Dentists | Ashtabula Doctors | Ashtabula Flowers | Ashtabula Hotels | Ashtabula Insurance | Ashtabula Loans | Ashtabula Mortgages | Ashtabula Movers | Ashtabula Pizza | Ashtabula Realtors | Ashtabula Restaurants | Ashtabula Storage | Ashtabula Tax Preparation | Ashtabula Travel | Ashtabula Featured | More...
|
|
Community Newspaper Holdings, Inc. • CNHI Classified Advertising Network • CNHI News Service |
