Cowan Plastics LLC, a company that billed itself as the oldest injection molder in Rhode Island, is operating with a skeleton crew after its assets were taken over by a secured creditor.
The Providence, R.I.-based company was taken over last week by creditor Bank of America Securities LLC of New York, according to Peter Furness, a lawyer with the Providence firm of Brennan, Recupero, Cascione, Scungio and McAllister, which represents Cowan Plastics.
Steve Greene of Riemer and Braunstein LLC of Boston, which represents Bank of America, said he could not comment on the situation.
Furness said most of the Cowan Plastics employees have been laid off and that a few members of management are returning molds and finishing up leftover work. The telephone at Cowan was not being answered.
He said the company ran into financial difficulties after it lost its largest customer, American Biophysics Corp. of North Kingston, R.I. Officials at American Biophysics declined to comment.
Furness said that with the loss of the customer, Cowan was in default of loan agreements. It had hired a broker to try to sell the business, and there were a few enquiries. However, the creditor opted to take possession of the assets.
The company was founded in Massachusetts in 1946, and then officials moved it to Rhode Island in 1948.