Heritage Glass suspends operations

KINGSPORT — Heritage Glass announced it temporarily suspended operations at the end of the business day on Wednesday pending a “potential reinvestment and reorganization situation.”

In a prepared release, Heritage Glass officials noted the company had difficulty recapitalizing while continuing operations.

“This is an energy and manpower intensive product,” the release said. “We knew from the beginning that attempting to restart this facility and create jobs would be an entrepreneurial risk. But we have been blessed by the most dedicated workforce we could ask for and incredibly supportive partners within the community. It is heartbreaking for all of us to reach this point, but until we complete our reorganization, we must temporarily suspend further production.”

The release also said Heritage Glass continues working with potential financial partners to restart production and utilize other key aspects of the facility, including extensive glass tempering operations.

“Heritage Glass remains committed to seeing the fulfillment of all its obligations to employees, vendors and others as conditions permit,” the release continued.

A Tennessee Department of Labor and Workforce Development spokesman said in an email that the company had not yet advised the state of its plans. Earlier this month, amid reports of not being able to pay its employees, Heritage Glass admitted it was undercapitalized and pursuing other financing. Last year, the company reopened the former Blue Ridge glass making facility off Lincoln Street and began manufacturing solar glass.

Kingsport, state and private investment came together in April 2014 in a $15.8 million deal to restart production at facilities closed by AGC in November 2012. The move restored local ownership at the glass plant, and was expected to employ 120 people short term plus up to 300 long term, city officials indicated.

At that time, back-to-back morning meetings by the Kingsport Board of Mayor and Aldermen and the Kingsport Economic Development Board allowed the deal to move forward. City aldermen approved a $2.6 million contribution going to KEDB to cover a bank loan purchasing the 34-acre site, excluding the AGC corporate office facility and credit union operation. KEDB, in turn, was in line to lease the real estate back to the Heritage Glass ownership group for 15 years in amounts equal to the monthly loan payments, according to the deal.

The company also had the option to purchase the real estate from KEDB at any time, according to KEDB legal counsel Gorman Waddell.

Heritage Glass purchased the glass business line from AGC for a reported $4.7 million, including $2.5 million for the production facilities, according to Kingsport Mayor Dennis Phillips.

“Heritage Glass appreciates the encouragement and support the state of Tennessee, the city of Kingsport, and NETWORKS Sullivan Partnership are providing for this project,” Heritage Glass President Eric Kerney said in a prepared release at that time.

Read more: Heritage Glass suspends operations | Kingsport Times-News http://www.timesnews.net/article/9087972/hertitage-glass-suspends-operations#ixzz3bOmfDB8f

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