DUBLIN, Ga. — Valmeria Glass USA recently terminated more than 300 employees from their Dublin plant, and now they are filling for Chapter 11 bankruptcy.
Bankruptcy attorney Daniel Wilder says businesses file for bankruptcy when they cannot manage their debt.
Court documents show Valmiera Glass USA owes money to the City of Dublin, the Dublin-Laurens County Development Authority B-H transfer, Active Minerals, and many other Central Georgia businesses.
"A corporation would usually file a Chapter 11 to either reorganize, to try and get its debts to be a more manageable payment schedule," Wilder said.
One of the biggest debts is to the Dublin-Laurens County Development Authority, coming in at a total of $1,280,714.
"For a company, a lot of times your balance sheet is not working for some reason. You just cannot bring in the income you expected," Wilder said.
The same court documents show Valmiera owes the city of Dublin $271,644 for utilities like natural gas, sewer, and garbage. Wilder says is going to take time to get that money from them.
"Bottom line... it is probably going to be many years this case will be pending," Wilder said.
Valmiera also owes B-H Transfer Co of Sandersville $143,000 and Active Minerals International of Milledgeville $137,390.
"Bankruptcy generally, all the chapters will stop creditors from taking collection actions against you while it is pending," Wilder said.
Wilder says most companies come into bankruptcy with a plan, but that could fall apart.
"Eventually Chapter 11 goes to a planned confirmation hearing, where they say this how we are going to make it work, and after voting, either that plan succeeds or fails. If it fails, generally the company would confer to a Chapter 7 or the case dismissed," Wilder said.
13WMAZ reached out to the development authority, who said they are not commenting at the moment due to legal reasons. The City of Dublin says they do have a law firm representing them and are waiting to learn more.