Fayco Plastics Co. Inc., a plastics compounder in Lemont Furnace, Pa., on Sept. 23 filed for voluntary protection from creditors under Chapter 11 of the U.S. Bankruptcy Code. According to its filing, Fayco had assets of $4.8 million and liabilities of $4.5 million.
One unsecured creditor, Emeric Szalay, president of plastics broker Best Ever Specialized Commodities Inc. of Walkerton, Ind., said an injection molder in Lake City, Tenn., had considered a financial bailout of the firm. Fayco officials did not confirm the report.
Among the Fayco equipment is a 160,000 pound resin silo with a centrally placed mixer.
A creditors committee meeting had not been set Oct. 9.
According to bankruptcy court documents, the two principals of the firm, Charles C. Gentile of Ohiopyle, Pa., and James C. Morrison of McMurray, Pa., count themselves as two of the three largest creditors to the company. Morrison claims to be owed more than any other - $131,778 for unspecified inventory and supplies. Gentile claims the third-largest unsecured loss, $73,878.
Neither Gentile, who is a practicing lawyer; John Paul Clunies, Gentile's lawyer; nor Morrison could be reached for comment.
Other creditors said they are not sure if liquidation of the 6-year-old firm was being considered as an option by its principals.
Neal Miller, chief financial officer of Goldmark Plastics Compounders Inc. of New Hyde Park, N.Y., said the creditor's committee might move to disallow payment to Gentile and Morrison, and set spending guidelines on the firm's principals until payment to other creditors is satisfied. Goldmark claims a debt against Fayco of $75,367.