Knight-Celotex files for bankruptcy
Knight-Celotex, a fiberboard manufacturer in Lisbon Falls, has filed for Chapter 11 bankruptcy after its accounts were frozen last week by Bank of America.
"We believe that filing for Chapter 11 protection provides us with the best opportunity to protect our employees and our operations, while fulfilling our obligations to our customers, vendors and the communities in which we operate," James Knight, chief executive officer of Knight-Celotex, said in a statement, according to the Sun Journal. The company maintained positive cash flow and paid all principal and interest on time throughout 2008, but Bank of America chose not to renew the company's credit facilities and froze its accounts. It was unclear how many people are employed at the Lisbon Falls plant.
The world's largest fiberboard manufacturer, Knight-Celotex of Northfield, Ill., also has operations in Sunbury, Pa., and Danville, Va., the paper reported.
Most Recent
Most Recent
Comments