APPLETON, WI (WTAQ-WLUK) – A hearing ended Monday after nearly seven hours of discussion, to decide the future of Appleton Coated and its more than 600 workers.
In the short term it looks like the future could be a little bit brighter for those workers.
The plant is in Combined Locks and makes products for high-end commercial printing, and text books, and it was auctioned off last week.
Appleton Coated employees left Outagamie County Court Monday feeling hopeful and vindicated.
United Steelworkers Local president Tony Swanningson spoke to Fox 11….
“We now have the time for people to finish their due diligence and for companies to make proper decisions.”
The top bidder in last week’s auction for the mill was Industrial Assets, a California-based liquidation company. It agreed to buy Appleton Coated for $21 million.
During Monday’s hearing the judge was supposed to either approve of the $21 million purchase agreement or deny the sale.
However, some changes were made to those original purchase agreements after a different offer came through from the employee union and a lending firm.
“We will work to do our very best to provide an operating budget to each of the steelworkers and the receiver. We will work very hard. That’s not a guarantee, but if it’s not done by the end of the day tomorrow it will be done the following day,” explained Mark Friedlander, Industrial Assets attorney.
Now, Industrial Assets says it will pay $20 million , with more money to provide an operating budget to keep the plant open for 45 days.
Over those 45 days Appleton Coated will run with only 200 employees to fulfill current orders. The mill typically employs more than 600 people.
Outagamie County Executive Tom Nelson admits it’s a long shot.
“We were down by a few touchdowns and this really was a hard-fought effort to get to the goal line.”
The hope is that during those 45 days a new buyer steps forward to purchase the mill and continue operating it as a mill with as many employees still working as possible.
Swanningson is trying to be optimistic.
“We came out of this with a huge win today. Going into this we were looking at a company buying us that was, literally they liquidate assets. We now have a door open to have a viable company come through and get this as an ongoing business.”
There is no guarantee, however, any of the employees will have a job after those 45 days are up. Most of the workers are currently laid off, while the process plays out.
As for what’s next. purchase and budget agreements are expected to be worked out over the next few days. The judge would still have to rule on those agreements.
