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Veneer plant resumes operations as financing package moves ahead

Posted: Thursday, March 29, 2001

KETCHIKAN (AP) -- The Gateway Forest Products veneer mill resumed operations Tuesday. That came as its managers rushed to prepare an interim financing proposal to submit at next week's Ketchikan Gateway Borough Assembly meeting.

The company filed for bankruptcy protection from creditors last month. The action came only a few days after a major construction project was completed at the new veneer plant, but before full production could begin.

That prompted the company to temporarily close its Ketchikan Sawmill and intermittently close the veneer plant.

It laid off sawmill workers and then called some of them back to work at the veneer mill.

Although workers have received partial wages, some of the money they earned before the Feb. 26th bankruptcy filing remains tied up in court.

The Ketchikan Gateway Borough Assembly has agreed to buy the debts of local vendors who suffered losses in their dealings with Gateway.

Borough staff members are preparing a plan for handling that as well as negotiating with Gateway officials about terms of the proposed interim financing.



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