Delhi factory prepares proposal for creditors
Delhi Solac laid off nearly 50 of its employees in Delhi before Christmas. Plans were to resume production Jan. 6, 2014. However, the property on Waverely Street is now up for sale with an asking price of $995,000. MONTE SONNENBERG / SIMCOE REFORMER
It’s beginning to look like the layoffs announced at Delhi Solac in Delhi a month ago may be permanent.
Fifty workers received layoff notices in the week before Christmas. A sign posted on the front door of the Waverely Street business in late December said the steel tube manufacturer would re-open Jan. 6.
However, the workforce remains on layoff while a “For Sale” has gone up beside the front door. As well, Delhi Solac has sought protection from its creditors under the Bankruptcy & Insolvency Act. The company has until March 3 to make a restructuring proposal.
Bill Haras, Delhi Solac’s vice president of sales and advertising, is one of six non-union workers at the Delhi facility. He directed all inquiries to Delhi Solac’s head office in St. Jerome, Quebec.
“It is what it is,” Haras said Wednesday. “I think you can read between the lines. I mean, there’s a `For Sale’ sign in front of the building.”
The 97,000-square-foot complex is listed with the real estate firm CBRE. According to the CBRE website, Delhi Solac is seeking $995,000 for the property.
Unionized members in Delhi belong to the Glass Moulders, Pottery, Plastics & Allied Workers International Union.
In an interview before Christmas, union chair Greta Trembley, of Delhi, confirmed that members of her local were laid off.
“We’ve just got our fingers crossed and are praying we’re back in January,” she said.
Trembley has since fallen silent and has not responded to several media inquiries in recent weeks. A call Wednesday to Denis Boulais, president and CEO of Delhi Solac, was also not returned.
Court documents say production at Delhi Solac ceased around Dec. 13. Notice of intention to file a proposal under the Bankruptcy and Insolvency Act was filed Dec. 20. The initial proposal period was set to expire Jan. 19. However, Delhi Solac has obtained an extension until March 3.
Debbie Conroy, a senior manager with Ernst & Young in Montreal, says Delhi Solac has sought a restructuring path that allows the company to remain in control of its assets. In a legal document available at the Ernst & Young website, Delhi Solac describes itself as “an insolvent person.”
Court records say Delhi Solac has outstanding debts in the amount of $10.1 million. Debts owing include:
• $70,100 in vacation pay to its employees.
• $1 million to Investissement Quebec.
• $3.3 million to the Royal Bank of Canada.
• $2 million to Janren Securities of Oakville.
• $499,000 to Solaris Industries of Kings Mountain, North Carolina.
• $1.2 million to Samuel, Son & Co. of Toronto.
• $552,000 to Bailey Metal Processing Ltd.
• $302,000 to Venture Steel of Etobicoke.
• $163,000 to Arcelor Mittal Dofasco of Burlington.
• $4,015 to M.A. Smith Electric of Norwich.
• $69, 216 to Ariston Tubular Products of Brampton.
• $11,200 to Mad Express of Listowel.
• $1,188 to Delhi Tool & Fabrication.
• $1,949 to Dawdy & Sons Trucking of Waterford.
• $1,282 to Custom Edge Lawn & Home of Delhi.
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