WINNSBORO (Jan. 1, 2016) – Bankruptcy proceedings will not affect production of employment at Enor Corp. on 1 Quality Lane in Winnsboro, a spokesperson for the New Jersey based toy company told The Voice this week.
“This is just a credit restructuring,” the spokesperson said. The Winnsboro plant, he said, “is not going to be affected.”
Toy production is seasonal, Enor’s spokesperson said, with production entering its busiest time of the year now. Although the spokesperson declined to say exactly at what capacity the Winnsboro plant was currently operating, he did say the plant would be “back up to full speed shortly.”
Enor filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court, District of New Jersey on Dec. 2. According to documents included in the filing, the manufacturer of toys and games said they faced more than $5 million in liabilities, while claiming only $248,659 in assets with cash, cash equivalents and financial assets totaling just over $11,595.
On the list of Enor’s top 20 creditors, according to the documents, is the Town of Winnsboro’s Utility Department, to whom the company owes $135,029. John Fantry, Winnsboro’s utilities attorney, said last month that the Town would file a claim in an effort to recover the funds.
As part of their recruitment to Fairfield County by the S.C. Department of Commerce, Enor received a $300,000 Rural Infrastructure Fund grant from the S.C. Coordinating Council for Economic Development. Those funds were used to retrofit the 78,000-square-foot former Ruff & Tuff building at 1 Quality Lane, off Highway 321 S.
The company was also the beneficiary of a Fee-in-Lieu-of-Taxes (FILOT) agreement with the County. Under the agreement, Enor committed to invest a minimum of $2,500,000 in economic development property and a minimum of $3,870,000 in property subject to ad valorem taxation over a 20-year period. Enor also agreed to create at least 151 new full-time jobs at the plant over a five-year span.
Enor’s payments to the County in lieu of taxes were capped at a 403.5 mills, with a 6 percent assessment ratio on economic development property.
Milton Pope, Interim County Administrator, said last month the Chapter 11 filing would have no immediate impact on the incentives package.
“However, the County and the Department of Commerce are closely monitoring this situation,” he added.
Enor is being represented in Bankruptcy Court by Jeffrey A. Cooper of the Livingston, N.J. law firm of Rabinowitz, Lubetkin & Tully. The first meeting of creditors is Jan. 6, 2016 in room 3B of the Martin Luther King Jr. Federal Building in Newark, N.J. The last day for creditors to file a claim is April 5, 2015.
