Bankruptcy Filing Against Durango Could Block Final Paychecks
Creditors Want Their Claims Paid Before Workers
The claims could force one of Camden County's largest employers into Chapter 7 bankruptcy.
The company was set to close on Nov. 15, and most of the plant's 900 workers were already told not to report to work -- but were to be paid until the official closing date. Durango-Georgia President Herb Baez said Monday that the company has the money to make the payroll, but the bankruptcy action would prevent those paychecks from being issued.
On Friday, a $100,000 engineering feasibility study jointly funded by the company and the state showed that more than $100 million would need to be invested in the mill for it to be competitive with other paper manufacturing facilities.
Last Thursday, Standard & Poor's Ratings Services lowered its corporate credit rating on Durango-Georgia's Latin-American parent company, Corporacion Durango S.A. de C.V. to single-'B' from single-'B'-plus.
The ratings service reported that Corporacion Durango had $853 million in debt as of September 2002.
- October 30, 2002: Could Durango-Georgia Become A Biotech Plant?
- October 25, 2002: Most Durango Workers Denied Severance Pay
- October 18, 2002: Durango Denies Severance To Some Union Workers
- October 14, 2002: Durango Dismisses Hourly Employees; Sells Plant
- September 30, 2002: Study Of Durango-Georgia Plant Under Way
- September 24, 2002: State Rep., Governor Look For Ways To Keep Durango Open
- September 18, 2002: Camden Proposing Tax Increase In Response To Durango Closing
- September 12, 2002: Durango-Georgia Paper To Close In 60 Days
Copyright 2003 by News4Georgia.com. Information in this report contributed by our Camden County newsgathering partner, K-BAY 106. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.






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A hurricane watch went up Sunday from southeastern Louisiana to the Florida Panhandle as Hurricane Ida becomes a Category 2 hurricane.
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Slideshow
Capturing N.E. Florida's wanted suspects is a tough task, so the local station is trying to help with the Wheel of Justice. Every Thursday morning, the wheel spins and a wanted fugitive is profiled.
Images: Fugitives On 'Wheel'
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Images From Air Show