OMAHA, NEB. — Specialty Plastics Inc. of Omaha, a manufacturer of plastic binders and report covers, has filed for protection from creditors under Chapter 7 of the U.S. Bankruptcy Code. "They were losing money. They thought they were doing better than they were actually doing," Mark Laughlin, the company's lawyer, said in a May 30 telephone interview from his Omaha office.
"I'm still trying to overcome the shock. It's not pleasant to talk about," Joe Latoza, Specialty's board secretary, said of the May 23 bankruptcy filing.
U.S. Bankruptcy Court records show the company, which also goes by the name Record Plastics, has debts totaling more than $3.7 million and assets of less than $1 million. Debts include more than $74,000 owed to state and federal governments for tax and unemployment compensation.
The remainder is owed to numerous companies and individuals for loans, supplies, materials and services, records show.
According to an Omaha World-Herald story, Specialty Plastics shut down operations May 11 after telling employees they could go home, and that the company would be filing for bankruptcy.
Latoza did not provide details about how the company ran into trouble, but said, "The employees will get paid."
Court records show the company owes about 40 people back wages, salaries and commissions.