Plastics recycler Martin Color-Fi Inc. received a second extension June 23 on its deadline to file a plan for financial reorganization.
The Edgefield, S.C.-based company filed in November for protection under Chapter 11 of the U.S. Bankruptcy Code. It blamed problems including increased foreign competition, falling PET prices and poor decision-making at the corporate level, said Stephen Zagorski, president and chief operating officer.
Originally, MCF was given until May 17 to devise a financial reorganization plan. Zagorski said it now is working with the bank to have a plan ready by Sept. 14 — but it might ask for a third extension.
``At the end of the day we are still doing very well,'' Zagorski said. ``Right now we just have to implement a time line that works well for us and the banks. We are very optimistic.''
He said the firm strayed from its core operations in 1994 when it purchased Buchanan Industries, a speciality carpet manufacturer with plants in Dalton, Ga., and Elkhart, Ind. It also bought Star Fibers Inc., with a pigment operation in Pensacola, Fla., a polyester operation in Edgefield and a yarn plant in Laurens, S.C.
After about five years of operating the subsidiaries, MCF officials decided it was spreading itself too thin.
Zagorski said that to remedy the problem, the company reduced its work force from more than 1,000 employees to 576 and sold Buchanan Industries and its two plants in February for $4.6 million. That money helped to pay creditors.
``We now know that we are going to focus on our core competency, which is in fibers,'' he said.
MCF makes polyester fibers and pellets from recycled PET feedstock, including soda bottles, polyester fiber and film waste.
Zagorski said the company hopes to be completely out of bankruptcy by fall.