TONAWANDA, N.Y. — Churchill Technology Inc., a manufacturer of biodegradable plastic, continues to suffer financial setbacks.
The Tonawanda-based company and its subsidiary, Novon International Inc., filed voluntary petitions seeking protection under Chapter 11 of the U.S. Bankruptcy Code on Nov. 27. Churchill President Robert Downie said the filing will give the firm time to restructure its finances and develop its business.
``We anticipate that this action will result in our emergence from Chapter 11 in a strong and healthy financial situation to the benefit of our creditors and shareholders,'' Downie said in a news release.
Downie added that Churchill hopes to tempt new companies with biodegradable plastic that can be used in such products as dog bones and lawn care items.
In October, Gamal Ashraf Marwan, a director and one of Churchill's largest shareholders, was arrested and charged with allegedly paying bribes to push the company's stock.
After merging with Ecostar International LP two years ago, Churchill and its subsidiary have not reported a profit. The company lost $20.5 million during 1994 and 1995 combined, and reported a loss of $3.4 million during the first nine months of 1996.
Novon International's products include additives, specialty polymers and water-soluble materials that are used in packaging, composting, agriculture, food-service, pet-product and personal-care applications.