Future of Meadowcraft to be determined next week
Published 8:24 pm Friday, July 24, 2009
About 75 workers at Meadowcraft continue to toil at the company, waiting for word if a bidder will buy their employer or if a bank will liquidate them.
The word will come next week, said Wayne Vardaman, executive director of the Selma-Dallas County Economic Development Authority.
The company filed a bankruptcy reorganization petition March 20 in Delaware.
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Meadowcraft had negotiated with Wells Fargo, RZB Finance Limited and Burdale Financial Limited for about a month.
The banking creditors forced the company to file for bankruptcy, according to records in the U.S. Bankruptcy Court in Delaware.
Court records did not reveal the identity of the bidders for Meadocraft. The court will have to approve any actions regarding the company.
“Nothing has changed as far as the bankruptcy,” said Andy Hewitt, general manager of the plant, which is located at Craig Field Industrial Park.
Hewitt said bidders would submit their bids. The banks will review all the bids and make a decision.
“Best-case scenario is we’re bought and we continue to operate as we have,” Hewitt said.
The worst-case scenario is the banks would reject all the bids and force the company to liquidate.
“Typically, that does not happen,” Hewitt said.