International
laptop Battery, which surprised local officials when it abruptly closed its Upper Macungie plant last week, owes Pennsylvania more than $2 million, and state lawyers are initiating efforts to recover some of the debt.
State officials are also in discussions with the company regarding a project for which International
Sony vgp-bps13a/b battery received an $800,000 grant in 2010. That project has not been completed.
“This is a big deal,” said Sen. Lisa Boscola, D-Northampton. “We want to get back as much of that money as we can, so we can give it to other companies and help them succeed.”
The situation highlights how government-funded economic development — taxpayer investments in private companies that are expected to generate a return through job creation — sometimes goes bust. In the aftermath, the government officials and business executives who publicly announced their partnerships retreat behind closed doors to clean up the mess.
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“This is very common,” said Greg LeRoy, executive director of Good Jobs First, aWashington, D.C., nonprofit that monitors government investments in companies. “As you would expect through a recession, lots more deals are falling short.”
Pennsylvania offered several million dollars in assistance to lure International
latitude d630 battery to the Lehigh Valley from New Jersey in 2008, expecting the company to create hundreds of good-paying engineering and manufacturing jobs. Four years later, all of the company’s employees have been laid off and International
inspiron 14v n4030 battery is selling its assets and equipment to pay an undisclosed amount of debt.
That means the state may have to get in line with others trying to get paid. A major stakeholder in the company is Greenwich, Conn., hedge fund Wexford Capital, which invested $35 million in International
battery for Dell Inspiron 6400 in 2010. Several of the firm’s partners have backgrounds in corporate restructuring and bankruptcies, according to its website.
International Battery made rechargeable lithium-ion cells and batteries for military and industrial uses. The company, which was expected to employ 250 people within three years of opening, notified employees last week that it would be immediately closing. It’s unclear how many workers were at the plant on Snowdrift Road at the time it closed, though the company reported having 80 workers last year. Company officials have not returned calls.
“The market for energy storage, including lithium ion
inspiron 1545 battery, has been extraordinarily challenging,” International Battery said in a statement emailed to The Morning Call on Tuesday. “While International
dell inspiron 1545 charger Battery has a unique product and green manufacturing process, it has not been able to reach profitability. Unfortunately, given the challenging market, it was unable to raise additional capital to fund its operations. While it is no longer manufacturing any products, it is focusing on selling its assets and technology. Moneys received on account of these assets will be used to pay creditors.”
Its abrupt closure upends terms of various agreements International Battery had with the state, requiring new negotiations.
By closing, the company defaulted on a $500,000 opportunity grant it received in 2008 from the state Department of Community and Economic Development. International
Dell Studio 1747 AC Adapter Battery was supposed to stay in business through 2012 as a condition of receiving the assistance, department spokeswoman Theresa Elliott said. Because it closed before that time, it has to repay the state, she said.
“Our office of chief counsel will be notifying the company of their default under the contract and begin the process of recouping the $500,000 grant,” Elliott said Monday.
Weaknesses in the state’s Opportunity Grant program were highlighted in a 2007 report by the state auditor general’s office. The program doled out more than $200 million in grants from 2000 to 2005, but lacked adequate oversight to ensure the jobs promised were being created, and the Community and Economic Development Department waived millions of dollars in penalties against grant recipients that failed to meet their obligations, according to the report.
In addition to the Opportunity Grant, International
inspiron n5010 battery owes nearly $1.7 million on a low-interest state loan it received to purchase equipment, according to the department. The company was current on the loan as of February. The department would not comment further on the remaining balance until it speaks with International Battery representatives, who had yet to notify the department about its closure as of Tuesday afternoon, Elliott said.
International
toshiba pa3356u-1brs battery in November 2010 received an $800,000 grant from the Pennsylvania Department of Environmental Protection to design, build and test a power storage system for such renewable electricity sources as solar and wind. Such a storage system would make wind and solar power more viable, according to the state.
The project is 80 percent complete, said DEP spokeswoman Amanda Witman. The department had conversations with International
Dell vostro 1400 Battery representatives Tuesday about transferring the project to another company so it can be completed, Witman said. The state’s investment is in equipment that can be sent to another company, she said.
“There is a grant contract that exists between International Battery and DEP, which is designed to resolve these types of situations,” Witman said. “There is an ongoing dialogue between International
Dell studio 14z battery and DEP to resolve this situation. Because it is an ongoing issue, DEP can provide no further comment until the matter has closed.”
