approved two stopgap measures to allow for time to save operations at the Climax Packaging plant in the village at their regular monthly meeting this morning. One measure will be for the LCIDA to make the March and April payment to the Utica Lease Company, which owns the bulk of the equipment in the Climax facility. The LCIDA board unanimously approved financing up to $175,000 for lease payments on the equipment for up to three months. Climax never made the March payment and the April payment is due by April 16th. Without someone paying the lease, the equipment could go up for auction at any point, severely impacting any potential of keeping the plant operational. The LCIDA would work on a month to month approach on making the payments while taking the lead on finding a buyer for the operation. It was indicated that $1.4 million is the balance of the lease. The board also approved up to $20,000 to be used as salaries to hire on consultants familiar with the business and the industry to assist in seeking an arrangement to continue operations and help secure new ownership. Many questions still remain, including who exactly holds ownership rights to the actual plant and property. The company seems to be highly leveraged by debt, which may make any attempts at salvaging it nearly impossible. The measures acted upon this morning will allow time for officials to determine if the plant can be sold as an operating business. |
| Lewis County IDA Approves Making Lease Payment on Climax Equipment 04/07/16 12:30pm |
| Copyright 2015 linkinglewiscounty.com all rights reserved privacy policy here |
| Everything You Need To Know About Lewis County In One Place! |
| This Prime Ad Space is Available! Contact Us! |
Search Our Site:
| Tax time is here again! Get the most from your return! Contact Noftsier's Tax Service for all of your tax and financial service needs! |
