Judge signs settlement between parish, Fruit of the Loom
Published 12:00 am Wednesday, November 8, 2000
VIDALIA, La. – A bankruptcy judge has approved a plan under which bankrupt Fruit of the Loom would pay 1999 ad valorem taxes it owes Concordia Parish, Sheriff and Tax Collector Randy Maxwell announced Tuesday.
Although parish and company officials have been working on the settlement for several weeks, Judge Peter J. Walsh of U.S. Bankruptcy Court in Wilmington, Del., signed an order Tuesday approving the settlement.
The company, which filed for Chapter 11 bankruptcy in December, is Concordia’s biggest manufacturer. It owes the parish more than $2 million in taxes. That swells to $2,263,664 when penalties and interest are included, Stephen Wheelis, attorney for Concordia Parish, has said.
Citing confidentiality agreements between the company and parish officials, Maxwell could not say when the parish can expect to get the full amount it is owed. &uot;They could wire it tomorrow or later this week,&uot; he said. &uot;I have no doubt we will receive our money.&uot;
As part of the settlement, parish officials got written assurance that the company will pay its 2000 taxes as well. &uot;Fruit of the Loom wants to be a good corporate citizen,&uot;&160;Maxwell said. &uot;They want to do the right thing for this parish.&uot;
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. Still, parish officials said they knew little to nothing about Walsh’s action as of Tuesday evening, although they acknowledged that such an agreement could be a windfall for their budgets.
If the police jury gets the money it is owed, said jury Vice President Melvin Ferrington, &uot;it would mean great things for our general fund. … But I&160;don’t know anything about it.&uot;
&uot;This could have a tremendous effect on our upcoming budget, … and we’re expecting a tight budget,&uot; said Vidalia Mayor Hyram Copeland.
Still, Copeland said he does not expect the town to receive the full amount it is owed, although he would not say what amount he believes it will receive.
Still, some expected that it would take twice as long for the parish to receive even part of the taxes it is owed.
After a July 20 meeting with parish officials, Wheelis said it could be two to three years before Fruit of the Loom paid 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;I think that helped, of course,&uot;&160;Maxwell said, referring to that face-to-face meeting with company officials. &uot;Any time you can put a face on a problem, it helps your case.&uot;