The court-appointed receiver in charge of the bankrupt Glenshaw Glass Co. said 24 November 2004 that she was having talks with two active potential buyers, both of whom were analyzing the operation be…
The court-appointed receiver in charge of the bankrupt Glenshaw Glass Co. said 24 November 2004 that she was having talks with two active potential buyers, both of whom were analyzing the operation before deciding whether to make a commitment. If one of the investor groups commits, it will probably need to spend USD 4 million to USD 5 million to refurbish and restart three glass-producing furnaces, said receiver Margaret Good, president of turnaround consultant Meridian Group Good ordered two of those furnaces to be taken out of production and their tanks drained of molten glass in the week commencing 22 November 2004 in order limit financial losses while a buyer is sought. A third furnace was idled by a leak that happened a few weeks after the plant was extensively damaged by flooding on 17 September. “It“s encouraging that somebody is looking at it,” said Lou Brudnock, president of Local 134 of the Glass, Molders, Pottery, Plastics and Allied Workers International Union, which is the largest of three local unions that together represented around 300 production workers. The shutdown of the plant, which has operated in Shaler, Pennsylvania for 109 years, was described as permanent in a plant-closing notice filed by the company with the state. About 45 employees are expected to remain at the works while Meridian focuses on selling inventory and collecting accounts receivable due the company. Good was appointed receiver by Common Pleas Judge Robert Horgos on 5 November 2005 at the request of a major lender, PNC Financial Services Group. In appointing Good, Horgos also removed former owner John Ghaznavi from control. Good said she should know fairly soon if the plant can be sold. She said some customers for the plant“s glass containers, including beer makers and liquor distillers, have expressed interest in its continued operations. “Obviously, the longer we go, the more likely it is that the customers will go to other places,” she said. “So we probably have a week or two for initial responses that look positive and seem to say the buyer wants to go forward.”