Hearing to determine when, not if, taxes will be paid
Published 12:00 am Monday, September 18, 2000
VIDALIA, La. – A hearing is set for Friday to determine when Fruit of the Loom will have to pay more than $2.36 million in taxes, interest and penalties it owes Concordia Parish.
The hearing will be before Judge Peter J. Walsh of U.S. Bankruptcy Court in Wilmington, Del., said Stephen Wheelis, an Alexandria, La., attorney representing Concordia Parish agencies in the case.
Fruit of the Loom — parent of Vidalia Apparel, Concordia’s largest manufacturer — went bankrupt in December.
Including taxes, interest and penalties, Concordia Parish is asking for $2,263,664 from Fruit of the Loom. That does not include the Town of Vidalia, which is asking for $96,636, Wheelis said.
&uot;The question is not if they have to pay these taxes — the law says they do — but when the judge will require that they pay them,&uot; Wheelis said.
Following the hearing, Walsh will decide whether the taxes are priority claims and set a timetable for them to be paid. But Wheelis acknowledged that even if a timetable is set, it could be quite a while before the parish gets its money.
&uot;Fruit of the Loom’s goal for confirming its (bankruptcy) plan is mid-2001, so it could be after that before the parish is paid, although the judge could set (the deadline) for earlier than that,&uot; Wheelis said.
And after a July 20 meeting with parish officials, Wheelis said it could be two to three years before Fruit of the Loom pays its taxes.
That meeting was held to brief parish officials on a July 11 meeting Sheriff Randy Maxwell, Police Jury President Charlie Blaney and Wheelis had in New York with Fruit of the Loom attorneys to plead their case for early payment.
&uot;That made them more aware of our need for this money, which is needed just to pay our necessary operating expenses,&uot; said Blaney, adding that he will attend Friday’s hearing if he is needed.
Maxwell has also said he will attend the hearing if necessary, according to Wheelis.
Fruit of the Loom owes Concordia schools more than $700,000, the Sheriff’s Office $547,000, the Police Jury $564,000 and Vidalia about $92,600 for 1999 taxes.
Other than a school district in Texas, Concordia Parish agencies are thought to be the only governmental bodies who have filed claims in the Fruit of the Loom bankruptcy case so far.