DuraFiber Technologies files for Chapter 7 bankruptcy
SALISBURY — After closing its Salisbury plant, DuraFiber Technologies last week filed for Chapter 7 bankruptcy.
The company employed about 370 people at its plant on Statesville Boulevard, which opened in 1966. It also owned plants in Cleveland County and Winnsboro, South Carolina.
DuraFiber Technologies’ headquarters is located in Huntersville, but some affiliates are registered in Delaware.
In July, the company notified the N.C. Department of Commerce that it planned to shut down the plants. The latest episode in the shutdown came late last week when the company filed a petition for Chapter 7 bankruptcy in U.S. Bankruptcy Court in Delaware. The court responded by asking for asking for additional information.
In Chapter 7 bankruptcy, a debtor’s assets are divided among its creditors to pay off remaining balances.
In DuraFiber’s case, the company states in court documents that its assets are greater than its total liabilities. The company states it has between one and 49 creditors, $100,000 and $500,000 in liabilities, and $100 million and $500 million in assets.
A representative of the company could not be reached Monday to comment on DuraFiber’s bankruptcy filing. In court documents, however, DuraFiber’s board of directors states that Chapter 7 bankruptcy is in the best interest of the company, its affiliates and its debtors.
Filed Friday, DuraFiber’s petition for Chapter 7 bankruptcy marks the start of what could be a months-long process. Before the case proceeds, however, DuraFiber must submit several more documents or the case will be dismissed, according to court documents.
The Delaware bankruptcy court has requested a number of documents such as a schedule of secured and unsecured creditors.
Meanwhile, several local agencies are helping employees cope with layoffs associated with DuraFiber’s closure.
Rowan County United Way Executive Director Bob Lippard said a number of groups hosted rapid-response meetings to aid former DuraFiber employees. Aid that is available to former employees include rent and utility assistance, Lippard said. The YMCA is also providing temporary memberships and child care services to affected employees, Lippard said.
He suggested that DuraFiber employees in need of assistance call 211, a service provided by the United Way.
Contact reporter Josh Bergeron at 704-797-4246.
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