Panolam Industries International Inc. filed for Chapter 11 bankruptcy protection from creditors as it restructures its finances to eliminate more than $150 million in debt on the books owed Wells Fargo Bank.
The Shelton-based company sells decorative laminates for use in household surfaces, store fixtures and other applications, as well as resins for a wide range of uses, from paint and adhesives to cargo plane liners and bowling alleys.
Panolam announced Sept. 30 an agreement with creditors to restructure its debt and formally filed Nov. 4 for bankruptcy protection. The company said it will continue to operate normally as it restructures and will honor all obligations to customers, vendors, suppliers and employees.
In the first half of 2009, Panolam lost $22 million as sales dropped 35 percent to $131 million. In its bankruptcy filing, the company listed assets of $402 million and total debt of $448 million.
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A federal bankruptcy judge in Delaware approved the sale of Velocity Express Corp. to ComVest, in a deal that eliminates $100 million in debt on the company”™s balance sheet.
Westport-based Velocity Express provides courier services in more than 30 states and has 3,300 employees.
Under CEO Vincent Wasik, Velocity Express fell short of financial requirements in credit covenants leading up to its filing in September for Chapter 11 bankruptcy protection covering several affiliate companies. Velocity Express”™ largest unsecured creditor was St. Paul Fire & Marine Insurance, which was owed $1.8 million, ComVest is based in West Palm Beach, Fla. and has an office in New York City.
