Chesapeake Hardwood Products Inc has filed for Chapter 11 creditor protection in a US bankruptcy court in Norfolk, Virginia.
The Virginia-based company halted operations at its plywood plant in August 2008 and hopes to use money from leasing its factory space to repay creditors, reports The Virginian-Pilot.
In its filing, the company listed liabilities of US$13.6m and assets of US$6.1m, including its 445,000ft2 plant.
Creditors include more than 120 former employees who are owed a combined US$1.15m in severance payments, while the Pension Benefit Guaranty Corp has made a US$405,619 claim for an underfunded pension plan.
In the filing, Chesapeake said its factory “is the only meaningful source of recovery for repayment to the creditors.The company is seeking court approval to continue using money from leasing space while it works out a repayment plan.
