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 This material may not be published, broadcast, rewritten or redistributed.






A 24-year-old man with a violent criminal past is accused of raping five women in two weeks, and investigators believe there may be more victims.
A 17-year-old is fighting for his life tonight after police say his family said he was brutally beaten with a baseball bat.
Former vice-presidential candidate and former Alaska Gov. Sarah Palin speaks to a crowd gathered at Orange Park Mall before going inside to sign copies of her new book, "Going Rogue."
A 46-year-old man waiting at a Middleburg church during a Cub Scouts meeting allegedly exposed himself to a woman employee of the church, according to charges filed by the Clay County Sheriff's Office.
Clay County deputies have busted what they called a methamphetamine manufacturing operation found inside a Middleburg home on Friday night.
While handing out Thanksgiving food donations in Atlanta, celebrity chef Paula Deen was accidentally hit in the face with a ham.
Ware County's sheriff says Friday night's shooting of an 11-year-old boy with a pellet rifle by a football teammate remains under investigation.
Investigators say a Bradford County woman who got pulled over for speeding tried to work her way out a trade by offering sex to the officer that pulled her over.
Former Alaska Gov. Sara Palin and now best-selling author makes a two-hour stop in Orange Park Tuesday morning.
Slideshow: Palin Talks To Crowd, Signs Books
Check out these lookers who ran into the law.
For every great Christmas movie, there are ten annoying ones. We have a look at some of the worst.
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'
They air every year but we never get tired of them. Click in to see which holiday television classics continue to warm our hearts.