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 This material may not be published, broadcast, rewritten or redistributed.






Former NFL quarterback Steve McNair and a woman were found shot to death Saturday inside a residence in Nashville, police say.
Cities and towns across northeast Florida and southeast Georgia put on fireworks displays, parades, concerts and other celebrations of America's birthday.
Authorities in Gainesville still searching for the gunmen.
One person is dead following a traffic crash in the middle of the Fuller Warren Bridge.
Jacksonville begins Independence Day festivities on Friday, with much more in store for the holiday.
An afternoon of country music is capped by SkyBlast, Jacksonville's fireworks display.
One day after 76 dogs were confiscated from a south Putnam County mobile home, plenty of people are offering homes for the animals, but they may only be temporary.
The Jacksonville Sheriff's Office has arrested four people accused of shoplifting at a Westside department store is also suspected of hitting stores at the St. Johns Town Center.
Sarah Palin is stepping down as Alaska governor.
It formed in southern Duval County and slowly moved north -- mostly on or near the St. Johns River -- so thousands of people could witness its power.
Viewers throughout Duval County saw, snapped and sent in photos of the waterspout that moved up the river Friday afternoon.
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.
View All Fugitives On 'Wheel'